Digital Disasters After Death

As I have previously discussed, some states have addressed thedifficulties with digital asset management after death. Communication hasevolved, gradually making some important asset information only availableonline. As a result, if the decedent does not enact a plan for his digitalassets, then the passwords, security questions, and other web safety assurances maydelay or prevent someone from carrying out the decedent’s wishes. Now, many estate planners are faced with digital disasters after their clients pass.

While some states are addressing the afterdeath digital management difficulties, other states are addressing the privacyissues by enacting anti-hacking laws restricting access to online accountsfor privacy protection. Consequently, families and representatives of adecedent in these states are left with fewer options. There is no uniform bodyof law, state or federal, concentrating on the digital asset management issue;however, there are some solutions available to help with the problem. Some are as simple askeeping an updated paper list of online accounts, passwords, and securityquestion answers in a safe place, or including a provision in a will or trust.Some solutions are more complex. Consumers can buy software for passwordmanagement or hire companies that secure your accounts. These options usually make private information availableafter death. Digital asset management will depend on the individual, but as time goes on, it is becoming more necessary for bothestate planners and families to discuss the topic.

See Kenneth P. Brier and Julia A. Rossetti, Death In The Digital Age, Private Wealth Magazine, Jan. 4, 2013.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.