In estate planning, many of us tend to focus on assets with tangible value, such as investments and real estate. Yet, frequently disregarded are many digital assets due to their perceived lack of monetary value. However, a Wall Street Journal article reminds us that these assets may possess substantial sentimental value, and overlooking their transfer can have distressing outcomes. For instance, one widow was unable to retrieve thousands of photos stored on her partner’s cloud account. Another wasn’t able to access her late husband’s Facebook profile.1
It is becoming increasingly important for loved ones to know how to access digital accounts to safeguard important information. Canada doesn’t have consistent legislation giving the executor/attorney automatic authority to deal with digital assets. Rules vary by province, if they exist at all.2 Yet, even if laws do allow for authority, the reality is that access can be difficult if no provisions have been made by the deceased. Customer support for online accounts is often limited, creating challenges and undue stress during an already emotional time.
As such, here are a few steps we can all take today to help safeguard our digital assets and provide future access:
Update your inventory — Just as we should keep an inventory of physical assets for estate planning, it is equally important for digital assets with no perceived monetary value. This includes records for digital assets (computers, phones, tablets, etc.) and online accounts (usernames and passwords for each). The list should be updated regularly and securely stored. This not only helps loved ones with access, but also with security to manage, protect or close accounts and destroy sensitive material or information.
Safeguard data — Protect your data by regularly backing up important files, contacts, photographs and other information stored on your devices. Consider encrypting sensitive data for added security.
Consider the use of a password manager — If keeping an updated list of accounts/passwords is difficult, consider a password manager. These software programs maintain access information for digital accounts, including account numbers, passwords and other important data you might need to leave behind.
Establish a legacy contact or plan — Many platforms offer options to designate a legacy contact or create a legacy plan for your accounts. For Apple devices, go to “Settings” and then tap your name. Under “Password & Security” go to the “Legacy Contact” option. The system will generate an access key for your contact, which will need to be presented alongside a death certificate to access data. Google users can access this feature by visiting “myaccount.google.com” and selecting “Data & Privacy,” then “More Options” and “Make a plan for your digital legacy.” You can then decide when Google should consider your account inactive and what will be done with your data.
Revisit your estate plan — Ensure your will, power of attorney or any other relevant directives include language addressing digital assets. Grant representatives the authority to access, manage, distribute and dispose of these assets accordingly.
1. https://www.wsj.com/articles/a-plan-for-your-digital-life-after-death-177b065e
2. https://dig.watch/updates/saskatchewan-ca-introduces-fiduciaries-access-digitalinformation-
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