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.
-
First-time Homebuyers Are Older Than Ever, Survey RevealsFirst-time homebuyers are now in their late 30s and jostle with cash-rich buyers in the race to buy a home, new research from the National Association of Realtors has found.
-
What's Hurting Retirees' Confidence?Retirees aren't feeling that confident about their financial health.
-
What to Do as Soon as Your Divorce Is FinalDon't delay — getting these tasks accomplished as soon as possible can help you avoid costly consequences.
-
Many Older Adults Lack Financial Security: What Can We Do?Poor financial literacy and a lack of foresight have led to this troubling reality. It's going to take tax policy changes, education and more to address it.
-
Winning Investment Strategy: Be the Tortoise AND the HareConsider treating investing like it's both a marathon and a sprint by taking advantage of the powers of time (the tortoise) and compounding (the hare).
-
How to Fight Inflation's Hidden Threat to Your SavingsIf higher prices are putting your savings goals on hold, you're in danger of financial erosion. Fortunately, several strategies can help stop the spread.
-
10 Inefficiencies I Look for on Rich Retirees' Tax ReturnsYour tax return could hold clues to several missed opportunities and important gaps in your retirement planning.
-
Estate Planning: How Does the Basis Step-Up Rule Work?The step-up in basis, one of the most powerful tools in estate and tax planning, can make a huge difference in capital gains taxes owed.
-
Will You Pay Taxes on Your Social Security Benefits?You might, depending on your income, but smart financial planning now can help lower or even eliminate your taxes in the future.
-
A Simple Trick for Better Investing: Stop Timing the MarketInvestors who stay the course are rewarded for their patience and discipline, enjoying the benefits of compounding returns over time.
