Mana’s Guide To Digital Estate Planning And Safeguarding Your Online Legacy

In today's interconnected world, we are storing more and more information online, and as a result, we are increasingly reliant on our online accounts and services. Suffice to say, our digital footprint has become an integral part of our lives. From social media accounts to online banking and cryptocurrency wallets, each year it seems that our online presence grows vast and more complex. Recently, we’ve been writing a lot about aging, estate planning, and ensuring that your long term wishes are protected. Something that is also top of mind for us at Mana is how to care for your online presence, inheritance and legacy. This is where digital estate planning comes into play - a term that some of you might not be familiar with. So, what exactly is a digital estate plan, and who needs one?

Digital estate plans are for just about everyone these days…

A digital estate plan is a comprehensive strategy for managing and distributing your digital assets after your death or incapacitation. It encompasses everything from online accounts and digital files to cryptocurrencies and domain names. Just as traditional estate planning deals with physical assets, digital estate planning ensures that your online presence is handled according to your wishes.

Do I really need one?

In short, probably. Everyone who uses the internet should consider creating a digital estate plan. However, we think that it's especially crucial (even to establish at younger ages) for:

Individuals with significant online presence (e.g., social media influencers, bloggers)
People who own digital assets (e.g., cryptocurrency, domain names)
Those with a large corpus of important digital files (e.g., family photos, important documents)
Business owners with online operations
Anyone concerned about their digital privacy after death

What should I include in my plan?

A comprehensive digital estate plan should cover the following elements:

Inventory of Digital Assets: This is the foundation of your digital estate plan. Create a comprehensive list of all your digital assets (pro tip: start early, this could take you a while):

Social media accounts: Include all platforms you use or have an active account with, even those you use infrequently or don’t log into anymore.
All email accounts: This includes both personal and professional email addresses.
Online banking and investment accounts: List all financial institutions where you have online accounts.
Cryptocurrency wallets: Include both hot and cold wallets, and any exchange accounts.
Cloud storage accounts: Note all services where you store files online.
Domain names and websites: List all domains you own and any associated hosting services.
Online shopping accounts: Include accounts where you might have store credit or saved payment information.
Online subscriptions and streaming services: Note any subscriptions to software, media services, blogs, music, video, or gaming platforms.
Digital files: Categorize important files stored on your devices or in the cloud. This one can take a lot of time and effort; you may also want to consult with your family members about how they’d like you to organize this information.

Access Information: For each asset, provide the necessary information to access it:

Usernames and passwords: Use a secure method to store this sensitive information. This may mean ensuring that your password manager is up to date and simply documenting the master password.
Security questions and answers: Include these as they're often required for account recovery.
Two-factor authentication details: Note which accounts use 2FA and how it's set up (e.g., linked to a phone number, a back up email or authentication app).
Recovery email addresses or phone numbers: List any secondary contact methods linked to your accounts.

Instructions for Each Asset: Clearly state your wishes for each digital asset:

Social media: Specify if you want accounts closed, memorialized, or kept active.
Email: Decide if accounts should be closed or if certain people should have access.
Financial accounts: Provide instructions for transferring or closing these accounts.
Cryptocurrency: Include detailed instructions on how to access and transfer these assets.
Cloud storage: Specify who should have access and what should be done with the files.
Websites and domains: Decide if these should be maintained, sold, or allowed to expire.
Subscription services: Indicate which should be canceled and which might be transferred.

Appointment of a Digital Executor: This person will be responsible for carrying out your digital estate plan:

Choose someone tech-savvy and trustworthy.
Clearly define their responsibilities and the extent of their authority.
Consider naming a backup executor in case your first choice is unavailable.
Provide them with the location of your digital estate plan and how to access it.

Legal Documentation: Ensure your digital estate plan is legally recognized:

Include a clause in your will that references your digital assets.
Create a separate, detailed document outlining your digital estate plan.
Consider using a legal service or attorney to ensure the document is binding.
Update your plan regularly to account for new assets or changes in your wishes.

Backup of Important Digital Files: Create offline copies of crucial digital information:

Important documents: Contracts, financial records, identification documents.
Sentimental items: Family photos, videos, personal writings.
Professional work: Portfolios, manuscripts, research data.
Store these backups in a secure location, such as a safe deposit box.
Inform your executor of the existence and location of these backups.

Digital Asset Valuation: For assets with financial value:

Provide current estimated values of digital assets like cryptocurrency or domain names.
Include information on how to assess the value of these assets at the time of transfer.

Privacy Preferences: Clearly state your privacy wishes:

Specify which information should remain confidential.
Provide instructions on handling sensitive or personal data.

Digital Legacy Instructions: Consider how you want to be remembered online:

Draft final social media posts or emails to be sent after your passing.
Provide instructions for creating online memorials or tribute pages.

Business Continuity Plan: If you own an online business:

Detail how the business should be managed or transferred.
Provide access information for business accounts and assets.
Include instructions for notifying clients or customers.

By including these detailed elements in your digital estate plan, you can ensure that your digital assets are managed according to your wishes, your online legacy is preserved as you desire, and your loved ones have clear guidance on handling your digital presence after you're gone.

There are some special considerations worth highlighting for high-net-worth individuals. If you fall into this category, your digital estate planning likely takes on additional complexities:

Cryptocurrency Management: You might have significant cryptocurrency holdings. Ensuring the safe transfer of these assets is crucial, as lost private keys could mean millions in inaccessible funds.
Intellectual Property: You may own valuable digital intellectual property, such as patents, trademarks, or copyrights. These need special attention in both traditional and digital estate planning.
Privacy Concerns: You may want to maintain privacy even after death. This could involve detailed instructions for managing public-facing accounts or dealing with any posthumous media.
Business Continuity: For business owners, digital estate planning should address the continuity of online business operations, including transfer of control over business accounts and assets.
International Considerations: You may have assets and accounts across multiple countries. Digital estate planning must account for varying international laws regarding digital assets.
Legacy Management: Some may wish to establish digital foundations or trusts to manage their online legacy, requiring more complex digital estate planning.
Cybersecurity: Given the potential high value of your digital assets, you need to consider advanced cybersecurity measures to protect their digital estate even after death.

Many of these special considerations are intertwined with traditional financial estate planning, but make sure you pay special attention to online access as you do that work with your financial and legal support team.

Where do I store all of this sensitive information?

Storing your digital estate plan safely is very important and should be considered carefully. Talk to your advisors and family to help you decide. Here are some secure options, including some of their pros and cons:

Safe deposit box:

Rent a safe deposit box at a bank or credit union.
Secure and protected from theft, fire, and natural disasters.
Limited and physical access, which can be both a pro and a con.

Home safe:

Purchase a high-quality, fireproof and waterproof safe.
Convenient access for updates.
Ensure it's securely bolted down to prevent theft. Accessible safes can be an easy target in the unlikely event of a home theft.

With your attorney:

Many estate planning attorneys offer secure storage.
Professionally managed and legally protected.
May involve ongoing fees.

Encrypted digital storage:

Use a reputable password manager or encrypted cloud storage.
Allows for easy updates and digital access.
Ensure your executor and professional team knows how to access it.

Split storage method:

Store different parts of the plan in separate locations.
Enhances security but increases complexity - this method may not be worth the hassle for most people.

Secure online service:

Use a dedicated digital estate planning service.
Offers convenience and regular reminders to update.
Research the service's security measures thoroughly and get a second opinion before committing.

With a trusted family member:

Choose someone you trust unconditionally.
Ensure they understand the importance of confidentiality.
Consider this in addition to, not instead of, other methods.

Remember, regardless of where you store it, inform your executor and a trusted family member about its location and how to access it. Also, regularly review and update your plan to keep it current.

Digital estate planning is no longer a luxury—it's a necessity in our increasingly digital world. Whether you're an average internet user or among the ultra-wealthy, taking the time to create a comprehensive digital estate plan ensures that your online legacy is protected and managed according to your wishes. As our digital lives continue to expand, so too will the importance of digital estate planning.

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Madison Elliott is a UX Researcher at Google. Madison consults on data engineering and usability at Mana Financial Life Design (FLD). Mana FLD provides comprehensive financial planning and investment management services to help clients grow and protect their wealth throughout life’s journey. Mana FLD specializes in advising ambitious professionals who seek financial knowledge and want to implement creative budgeting, savings, proactive planning and powerful investment strategies. Madison brings her combined background in cognitive science, computer science and clinical psychology with her professional UX design and engineering experience to optimize workflows at Mana FLD and improve people’s lives.