In a recent Estate Planning post, I wrote about some of the many duties your assigned Executor will be responsible for. One of the crucial activities I listed was “Locating, safeguarding and itemizing assets - including digital assets: special blog post coming up dedicated to this!”
This is that Special Blog Post. Digital Assets are a new phenomenon and frequently overlooked in the estate planning process.
When I say Digital Assets, I’m talking about things like Facebook, Instagram, LinkedIn, YouTube and Snap Chat accounts…. online photo, music and movie libraries…. loyalty rewards and points … as well as online shopping accounts at retailers from Amazon to Zappos.
If you’re wondering why these ephemeral, ‘value-less’ accounts – which may not seem like assets at all – are so important, let me give you a few examples of what can happen if you don’t track digital assets in your estate planning.
Fraud and identity theft.
Leaving a deceased spouse’s, child’s or parent’s accounts open and dormant opens the door to identity theft. Without much more than a name, address, birth date and obituary, fraudsters know that they can open credit card accounts, apply for loans and get cellphone or other services before anyone notices. They can also create false profiles, accounts and run scams using your or your loved one’s photos and personal details.
Grief reminders.
In a recent episode of I'm a Millionaire! So Now What? Demi McGoldrick from Brazeau Seller Law recounted the heart-breaking story of a young man, husband and new father who passed unexpectedly in a vehicle accident.
“He had no provision for his assets. And, more in particular, his digital assets….Because they weren’t able to take down the Facebook account, every single birthday there was a notification that popped up. And they had to relive the experience of not having their husband and father there.”
That’s part of the reason it’s important to put a plan in place so you can access, shut down or in the case of Facebook, create a memorial page for a loved one. (Read more about Facebook’s Memorialized Account process here).
Frozen assets and cyber-assets.
Gerald Cotten, CEO of QuadrigaCX, died unexpectedly from complications due to Crohn’s disease while traveling in India. There are questions arising about the true worth of his company, but according to court filings when he died, access to millions in cryptocurrency were lost because the 30-year-old was the only person who had encrypted passcodes to several offline digital wallets. I’ve met many people who admit they wouldn’t be able to access their own online bank accounts if they lost a spouse, parent or partner unexpectedly.
In episode 43 of I'm a Millionaire! So Now What? Preet Banerjee reminded our listeners that times have changed.
“…Compare that to previous generations, for example. You have a record collection; you have physical records; you can just pass those on. It could be worth thousands of dollars, right? If you switch to an iTunes account and you’ve got digital copies, you just have a license for that copy, for that user, so when you die you can’t pass on that music unless someone wants to figure out what your password is. And that’s not allowable.”
Or, in many cases, you’ve paid your $1.99 each to download thousands of songs, movies, ebooks etc. Who really owns those, and can you pass those on?
Celebrity Chef Anthony Bourdain recognized the value of his digital assets when he prepared for his death before taking his own life. It’s reported that he bequeathed his frequent flier miles – which were plentiful! - to his wife Ottavia.
Your digital assets will be an important piece of the puzzle your executors will be left to figure out, so they should be a big part of your estate planning now.
If you’re among the 50% of Canadians who have NOT prepared a will, please make it a priority to get started this month. If you drafted your will before digital assets, passwords and online accounts were an everyday concern, now is the time to update your plan and address this with your professional.
Considering your Digital Assets is a fitting way to transition from my recent focus on Estate Planning to my next focus: Cybersecurity.
I’ll dive into this topic in upcoming posts, in the next few episodes of my podcast I'm a Millionaire! So Now What? (listen & subscribe here), and in my May Elevated Conversations Event:
Cybersecurity – the new frontier of online threats; protecting Canada’s domain
Join me in person for an exclusive event featuring Byron Holland, President & CEO of the Canadian Internet Registration Authority (aka CIRA).
We’ll enjoy a robust discussion about the new frontier of online security and meet the leader for Canada’s domain “.ca”. We’ll also discuss:
- What CIRA is all about
- Why, as a business owner, entrepreneur or online consumer you should care about how CIRA is advancing the internet in Canada and around the world
- How CIRA is creating a secure, accessible and resilient internet for Canadians while also shaping internet governance across in the globe
Wednesday, May 29, 2019
5:00 p.m. – 7:00 p.m.
Light refreshments will be served.
Location: A fine Preston Street establishment (address to be provided with reservation)
Attendance is complimentary & by application here: colleen.campbell@rbc.com.
I also invite you to join me for the remaining Spring Estate Planning Seminars:
Your executor – what you need to know before you hire yours
Wednesday, May 22, 2019 | 2:00 p.m. – 4:00 p.m.
Essential family conversations – protecting yourself and your wishes
Wednesday, June 12, 2019 | 2:00 p.m. – 4:00 p.m.
These are hands-on, practical, informational workshops to learn important estate planning considerations and strategies. Downtown Ottawa location details will be sent to you when you RSVP here.
Apply here for a Personal Prosperity Discovery Session to learn how to build your Roadmap to Real Riches - a fresh take on wealth management that optimizes how you spend, save & share your wealth, including the important preparations involved in estate planning.