My mom, who passed away a few years ago, was a very careful and meticulous person who kept a notebook with all of her online account passwords. Mom was also a Morse code operator in the Royal Air Force during WWII, so all of her passwords were in code. I was lucky: She told me about the book and her codes. If she hadn’t, finding and deciphering her notes would have taken a very long time and could have held up important estate and financial planning tasks.
Like my mom, most of us live part of our lives online today. We have email and social media accounts. We purchase digital books and music. We pay our bills and do our banking online. Many virtual items cannot be left to heirs through our wills because we don’t actually own them; we just have licenses to view/read/listen to them. Many online accounts, like email and social media sites, don’t belong to us either. The businesses that administer them control what happens when our contracts are terminated by death.
So, how do we prepare to leave our digital legacies?
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
List all of your online accounts.
These might include:
- Email accounts
- Financial accounts and utilities, including checking or savings accounts, retirement accounts, mortgages, life insurance, gas and electric, phone or cable bills and tax-preparation services
- Social media accounts (Facebook, Twitter, etc.)
- Music, photos or books stored online
- Websites, blogs and licensed domain names
- Seller’s accounts on eBay, Etsy or Amazon
- Any online communities or listservs where you have been active
Make plans regarding what should happen to those accounts.
Do you want someone special to have access to your iTunes library? To your photos? Do you want certain emails saved and printed, or would you rather have the accounts purged? Would you prefer your social media accounts be deleted or turned into “memorial” accounts when possible? Would you like someone to post a final status update after your death?
Choose a “digital executor.”
Let that person know where you keep your passwords (and if they need to be decoded). Talk to your executor, but also leave detailed instructions on where and how to find passwords, user names, etc. You may be able to leave virtual items you actually own (e.g., photos you took, music you bought) to people in your will, so make sure your executor has all the information needed to access and download them. You may also want to consider “vaulting” your digital goods with a company that puts all of your digital information (including passwords) onto one online platform.
Whatever you decide, do make a decision. Your digital legacy is important. Make sure your heirs can “crack the codes” to access it.
-
Cord Cutting Could Help You Save Over $10,000 in 10 YearsHow cutting the cord can save you money and how those savings can grow over time.
-
The '8-Year Rule of Social Security' — A Retirement RuleThe '8-Year Rule of Social Security' holds that it's best to be like Ike — Eisenhower, that is. The five-star General knew a thing or two about good timing.
-
You Were Planning to Retire This Year: Should You Go Ahead?If the economic climate is making you doubt whether you should retire this year, these three questions will help you make up your mind.
-
Are You Owed Money Thanks to the SSFA? You Might Need to Do Something to Get ItThe Social Security Fairness Act removed restrictions on benefits for people with government pensions. If you're one of them, don't leave money on the table. Here's how you can be proactive in claiming what you're due.
-
From Wills to Wishes: An Expert Guide to Your Estate Planning PlaybookConsider supplementing your traditional legal documents with this essential road map to guide your loved ones through the emotional and logistical details that will follow your loss.
-
Your Home + Your IRA = Your Long-Term Care SolutionIf you're worried that long-term care costs will drain your retirement savings, consider a personalized retirement plan that could solve your problem.
-
I'm a Financial Planner: Retirees Should Never Do These Four Things in a RecessionRecessions are scary business, especially for retirees. They can scare even the most prepared folks into making bad moves — like these.
-
A Retirement Planner's Advice for Taking the Guesswork Out of Income PlanningOnce you've saved for retirement, you'll need your nest egg to support you for as many as 30 years. For that, you need a clear income strategy, not guesswork.
-
Why Smart Retirees Are Ditching Traditional Financial PlansFinancial plans based purely on growth, like the 60/40 portfolio, are built for a different era. Today’s retirees need plans based on real-life risks and goals and that feature these four elements.
-
To My Small Business: Well, I've Been Afraid of Changin', 'Cause I've Built My Life Around YouWhile thinking about succession planning might feel like anticipating a landslide (here's to you, Fleetwood Mac), there are strategies you can implement to manage the uncertainty and the transition.
