As the world becomes increasingly digitized, digital estate management has become the forefront of a family’s financial and social portfolio. Knowing how to prepare these accounts for an inevitable death and how to access and manage them after death is crucial towards ensuring your family’s financial future.
The Digital Shift
The 21st century has brought around a massive shift to digital banking and account management. The 2020 coronavirus pandemic has only accelerated that shift as more people are partaking in digital account management than ever before.
The demand for means of contactless payments has invigorated a shift to digital payments for all age groups. According to the 2020 Digital Banking Attitude Study from Chase, 80% of survey respondents now prefer to manage their money digitally.
This digital shift reflects a need to learn more about how to practice good digital account management for yourself and your family.
How to Prepare Your Digital Accounts
Here are some important things to remember when preparing your digital account portfolio.
First, take an inventory of your digital accounts. This includes tracking all of your asset accounts and the login information for each one. Some of these accounts may include:
- Online banking accounts
- Credit card accounts
- Cryptocurrency keys/accounts
- Social media accounts
Next, it’s important to set up and assess your digital estate. According to US Bank Wealth Management, there are multiple things you should consider when organizing your digital estate, including:
- Organize email accounts: Executors may need your email addresses to take important steps in the settlement of your estate.
- Keep track of login information: Gather the usernames and passwords of all your asset accounts.
- Designate an executor: An executor carries out the wishes of your digital assets once you are gone.
- Store your digital account records: Provide instructions on how to access and manage your estate once you are gone. Online storage platform can be helpful.
Following these steps are critical to ensuring your family’s continued financial success once you are gone.
Digital Account Management Access Tips
Data privacy laws might make accessing digital accounts a difficult task for some families. However, there are ways that you can arrange for full access to your digital property before you pass on.
Don’t just rely on cloud storage, which can be difficult for others to access. Backing up your data to a physical computer or storage device is an easy way to avoid obstacles for your beneficiaries and executor, according to Fidelity Investments.
Make sure you provide expressed consent in legal documents. You can work with an estate attorney to manage your wills, trusts and if necessary, power of attorney. Allow your fiduciary or executor permission to bypass or recover your passwords to your digital accounts.
Securing Your Family’s Financial Future
Digital account management is a critical part of ensuring your family has a strong financial future after you pass on. Don’t know where to start or want to consult with an expert? Contact Skinner Law in Portland, Oregon today.