Planning for our earthly passing is never easy. But the evolution of the digital world has added another complication: our virtual, online self or avatar, and the digital “assets” associated with it. These days, when we pass on, our digital presence remains behind and, when not managed properly, can potentially cause unnecessary emotional and financial issues for your family, heirs, Power of Attorney and executors.
Information transformation
In today’s world, more and more of our assets – from banking to investments to loyalty programs – have moved from a paper-based to a digital existence, transforming the way we receive, track, store and access our assets. Traditionally, with paper-based records, those who needed access were able to do so through your Will, your records cabinet, a solicitor or accountant, or (heaven forbid) the shoebox in the back of your closet!
It’s often hard enough to keep track of our digital assets when we are alive, especially when we consider the added dimension of social media sites, online accounts and digital subscriptions. And the value of some of our assets can end up being overlooked: who knew that your loyalty rewards points could amount to a substantial sum? (According to Bond Brand Loyalty, Canadians have over $16 billion in unredeemed loyalty points!).
Ghost in the machine
Many of our most important digital assets are not necessarily financial. Instead, they consist of our online photos, videos, emails and documents that exist in our digital world and in various formats and sites, including “the cloud,” storage drives and sticks, and discs. These assets can be vitally important to family, friends and beneficiaries, providing them with a lasting link between you and them or representing valuable intellectual property.
As well, consider the various accounts and social media avatars that so many of us possess. Making sure these are shut down in a timely manner – or managed by Power of Attorney on your behalf – can avoid unfortunate confusion. Stating how you want these assets managed in your Power of Attorney and Will ensures your intentions are understood and honoured.
“Does anyone have a pen?”
The most straight-forward solution to the problem of finding and accessing your digital assets may seem quaint and retro in the Digital Age: write down the information and store it somewhere safe. And, ensuring that your accounts and passwords are written down somewhere that your Power of Attorney or executor can locate them is essential. But keep in mind that you need to let the right people know where to find this information, while also ensuring that it is easily understood, accurate and up-to-date.
As well, your Will should address your online assets, and how to access to them, which can alleviate many of the issues that are increasingly plaguing estate administrators and beneficiaries. Many sites have complicated and restrictive nonaccount-owner access rules, and that needs to be addressed to avoid complications when you are gone, or incapacitated.