Digital Assets: How to Inform Your Loved Ones

In this increasingly digital age, people often forget to ensure that their families are able to access their digital accounts when they pass away. Without your usernames and passwords it can be challenging, if not impossible, for them to access your digital assets. A study done by NordPass in 2020 estimated that an average person has at least 70 passwords. That is a lot of passwords to remember!

What are Digital Assets?

Digital assets are accounts that you have on the internet. These accounts include social media platforms such as Facebook, Twitter, and Instagram. They also include subscriptions to services like Netflix, Disney+, and HBO Max. Additionally, online banking, stocks, cryptocurrency, and phone apps are considered digital assets.

If the executor of your estate is not able to access your digital assets, any money or currency may end up going to the Texas Comptroller to wait for collection. Debts would be more challenging for your executor to pay if he/she is not able to access your accounts. It is important that you take the necessary steps to have this information available so that your executor can fully perform his/her role in settling your estate.

How to Store Passwords

 There are a variety of ways to store your passwords. The most basic is simply a sheet of paper with the usernames and passwords handwritten. Hardie Alcozer provides a form with every estate plan called an Important Information Form. We recommend that you store this in a safe place and update it from time to time as you change passwords online.

For those who prefer a paperless option, Hardie Alcozer also provides this document on a flash drive where you can enter the information from your computer. The form includes additional information such as who your physician is, your pet’s veterinarian, airline reward programs, and name of the company for your home, auto and life insurance. Be sure to let your executor know if this is where it is stored as well as the password to your computer.

Smart phone users can download a software on their phones to store usernames and passwords such as OneSafe, Dashlane and Legacy Locker. Both of these are secured by password protection so your executor would need to know the password for access.

Bitcoin and other cryptocurrencies have digital codes or passphrases for access. Your executor will need this information so your cryptocurrency is not lost when you pass away.

Make a Plan

As part of your estate plan, we add the ability for your agent to access your digital assets under your durable power of attorney. This way, your agent is able to pay bills and manage your bank account online if you are incapacitated.

We realize that this may seem like you are giving all of your confidential information away and allowing access while you are still alive. We do not advise giving the usernames and passwords to anyone. Simply let your executor know where the document with all of your usernames and passwords is stored so that when the time comes, your executor is set up for success.