Create a Digital Estate Plan
Imagine a family member has an unexpected medical event, and unfortunately that family member can no longer communicate. This happened to me when my father had a traumatic fall and lay unconscious for weeks. My mother had no access to his online accounts or information needed to answer the questions being asked in the ICU. We knew he had bank, investing, and other online accounts. We just had no way to access them to keep paying the bills or even assess his medical contact information.
The above scenario is one of many true-life examples we've heard of. In fact, it's what you can expect to happen, if you do not set up a plan for your digital assets.
Even if your parents are digitally savvy, without a login and password, you may not be able to access all their online accounts. For example, financial institutions require two-factor authentication with a code sent to the primary account holder's phone or personal email address. This may be something the other person cannot access.
The solution is to have all this sensitive information collected together in a secure place where a designated family member can access it and find clear instructions on its use. Douglas Boneparth, a financial advisor who's written about this issue for Investopedia, recommends a simple, three-step approach.1
1. Create a Comprehensive Digital Inventory
Make a thorough list of your online accounts and how to access them. This should include all financial and business accounts (like insurance, recurring bills, and subscriptions), as well as your social accounts. Each entry should include instructions for how you want the account handled.
2. Designate a Digital Executor
Assign (with permission) a tech-savvy person to handle your digital assets. Make sure you give them the appropriate legal authority to act, if needed, on your behalf.
3. Include Digital Clauses in Legal Documents
Working closely with your estate attorney, be sure your will or trust explicitly mentions your digital assets and how they are to be handled.
Having a clear plan for your digital information that controls your accounts will not only ensure that your wishes are carried out but can also save your family needless stress and wasted hours trying to figure it out on their own. We can help. We have a Getting Retirement Ready packet we’d love to share with you to help you and your family be Retirement Ready! Contact us at retirement.concierge@apadvisors.com or call at 800.394.6807 to help you put together a digital asset plan that is both simple and secure.
http://go.pardot.com/e/91522/gital-estate-planning-11695074/971rhl/2973060380/h/2l0ZCsJFsJfWpva3P5FVrIujygB72GOxMezzcLh7fjk
