Estate Planning for digital assets
- 24th November 2017
- Posted by: Andy Luckman
- Category: Wills
The world is changing … fast.
At the time of writing this I am 37. I got my first mobile phone when I was 17, 20 years ago! My first computer was a Sinclair Spectrum and I played games on it. In fact, computers were for playing games on as far as I was concerned until at least 1997. I had IT (Information Technology) lessons in school but didn’t pay much attention. It was mostly graphs, flowcharts and spreadsheets, boring.
The point I am making is that up until the age of 16 or so I never considered using a computer for anything other than games. These days, obviously you can still do that BUT … you can also do so much more! My job wouldn’t exist without one, or much of my leisure time. Films, TV Series, Books and yes … still games are all things that I experience online. They are purchased to “own” and are all stored in formats that can’t be held.
Digital Assets: A new addition to the Last Will and Testament
When you mention estate planning to someone and ask them to define it, apart from a small groan they may audibly mention Wills, money, houses and inheritance tax. Stocks, bonds and guardians may get a mention too. Although important … nothing new or out of the ordinary. The concern is when it comes to the items we have spent money on that you can’t hold. You can’t pass it over in person and you certainly can’t leave it to someone by mentioning the item and location.
We spend money on things these days that are in the cloud, on a hard drive or within an account with security measures. We have services taking money from our bank accounts monthly or yearly, that in the event of our death, would be really difficult to close without being able to log into the account. It may not sound like too much of a problem and not worth worrying about.
You should however as it is yet another, albeit newer part of the probate process that can and will give your loved ones a stressful time once you are gone.
Games, Films, apps, subscriptions and more have all been paid for and belong to you. The thing is … how are they easily cancelled and are you able to transfer any of them onto your loved ones when you die?
Online Purchases of the young and old
Today’s older generation are becoming more and more tech savvy and as such are embracing computers, tablets, smart phones and more.
In doing so they may have set up accounts with the likes of Google, iTunes, Facebook, Twitter and Spotify to name but a few. Young or old, you may have purchased games from the Xbox Marketplace or films from Apple TV service or Sky. Do these disappear from your accounts on death or are they an asset that you own and can pass to someone else? It is definitely something that you should look into.
Another big question is, what happens to social media accounts when we die?
Do bear in mind though .. it is not just the older generation that need to take heed. We do not know the date of our death and just because someone is 60 doesn’t mean they will die before someone who is 40.
For this reason I am taking the time to explain the importance of embracing your digital footprint and purchases and to make the process of closing things down easier for your loved ones. Also, where you are able, to allow the digital items to be passed onwards after you are gone.
Aside from online purchases and services we also need to take responsibility for our social media accounts. Mainly to ensure that they don’t upset our family members in future.
Many services take a monthly fee from you in order to continue your access. Setting them up is as easy as putting in your email address and Paypal information. Closing can be just as easy, click the cancel button under profile.
What if the person doing it isn’t you and doesn’t have your profile information though?
In this circumstance the ease of online accounts goes out of the window. Some services will require proof of death and others will suggest it is easy when it may be far from the case. Take Netflix as an example, it works as I have described. Want to cancel? Head to the account section from a computer and click on “Cancel Membership”.
Closing these accounts after your death when others are unable to log in though is not so easy. One would think that Netflix hasn’t really thought about it as a search in their help centre shows up empty. A google search though found an article from a lady in dire need of help. She tried to cancel the account, got told it was cancelled, and then they kept taking payments!
Messages from beyond the grave
The same issues arise with social media accounts. Which ones do you have?
Would you want them closed after you die? What harm could come from it?
Let’s use Facebook as an example. Just for now let’s say we are friends and that you have shuffled off this mortal coil. You are gone, I return from your funeral, open my phone and see a post from you. I drop phone, screen cracks … it’s all your fault.
I realise I am making light of the situation and that is intentional. It would seriously freak me out!
Facebook business pages allow for you to schedule posts days or months into the future. If you use a third party solution such as Hootsuite … you can do the same thing with your personal posts. You could be long gone and yet seemingly from beyond the grave you are trying to talk to your facebook followers.
It has happened and it will continue to happen unless we take the appropriate steps to ensure that social media account login credentials are available to executors.
In the case of Facebook, I could have informed them that you had died. It would have taken immediate family to report your passing before Facebook would do anything about it though. There are two options, memorialising your account or asking for account cancellation. Facebook states that they would never openly give the login details to anyone whether you are alive or dead and it is their policy to memorialise the account. This allows for the account to stay open and for people to be able to use it to gather and share memories.
Is that what you would have wanted though? Account removal may be considered a preferred option. After you have gone, this all takes time and potential upset for friends and family that they most likely could do without.
Even if you haven’t scheduled posts you would still appear in searches and available for tagging in photos. Personally, I would find that creepy and would want to protect the people I care about from the upset.
Providing your social media log in details on death would ensure that your accounts could be closed quickly if that were your choice as per your last wishes. If you made no such specification, at least it would be easier for your loved ones to make the decision.
Your rights of purchase after you die
Entertainment services like Sky, Apple TV and other satellite TV services allow for you to buy films and series to download to your hard drive. Do you own these films indefinitely though?
Searching online turns up few results for the main reason that I believe the average person hasn’t really thought about it yet. In fact the companies are making it difficult to find this information out too. Looking into the help and support portals provided by the likes of Netflix and Sky, show me that they don’t believe it is a big deal as yet. It has certainly got me thinking about what I spend my money on.
How much money might we have pumped into our film or music collection over a lifetime though?
If it were DVDs or CDs I would leave them to my partner, sister or friend. When it’s all online though and associated with an account that I have sole ownership of … what happens then?
In order to find this out, it would mean direct contact or potentially looking into the terms and conditions of service or purchase.
I emailed Sky and asked … what happens in the event of my death?
The response I received back was short and to the point …
“I wish to inform you that your account will be changed to deceased status and you will not be able to gift it to your friends or your family.”
Although pretty vague and not really specific to the films and series that were bought to keep, maybe I am to actually take it at face value. If I die, my purchases cease to be.
I emailed back and mentioned that this is concerning news. That we are all spending money on items that are only good for the period of our lifetime whereas previously they were for the length of the CD/DVDs lifetime.
The response I received then was from a manager who stated:
“With any Buy & Keep purchases these will be available no matter what, if for instance your Sky TV account was to close, you will still be able to view all your Buy & Keep purchase via www.skystore.com .
These can also be accessed by friends and family as long as they know your username/email and password in order to access www.skystore.com , if they do know these details then by all means they will be able to view the purchases you have made.”
This would suggest that your account is never closed and that they allow other people to access a deceased persons account. It doesn’t seem ideal and could potentially be upsetting.
iTunes, Amazon, your satellite or cable service all offer the opportunity to buy music, film and TV online as a digital entity. In order to properly understand your rights of purchase for digital items you would need to delve into their Terms and Conditions or flat out ask and potentially get the kind of response I have received.
Although I looked into a couple of examples for you, that isn’t really the purpose of this blog. Now that we have some scale and idea of consequence the big question is … how do we make sure that we look after our family, pass down what we are able to and generally allow for a smoother transition. We would be gone, who cares right? I think I would.
Make a list of digital assets
Simple, although potentially time consuming.
I don’t just mean online accounts here but also any and all technological assets that you have. Hard drives, computers, phones, tablets … even that old Psion Organiser you have (could be worth a bit of money these days!).
Unless you have an obscure collection, the hardware side of things may not take that long, It’s the online accounts and their access details. Accounts including Social Media, Shopping, email, photo and video sharing, cloud storage, banking, gambling, websites and blogs should all be listed.
Now you have a choice in my opinion. I have seen a fair few articles suggesting that you write down usernames and passwords for all accounts. As I type this I am well aware that the advice may well go against the terms and conditions of the services in question. As always it is totally your decision to take heed but there is no doubt that doing as suggested would make things a lot easier for your family.
* Keep a complete list of all accounts including passwords to allow access after you are gone. This may not be the best course of action as passwords change all the time with most services suggesting you do it multiple times a year. Keeping a file updated so often would become annoying.
* Give one person access to everything during your lifetime, although this isn’t ideal and may feel like an invasion of privacy.
* There are online resources that offer multiple options to pass your differing accounts to differing people. Entrustet or Legacy Locker, allow you to designate access to differing people. You may not want all of your emails read by your mother but you may trust a friend to delete the emails and account without reading it. You may have a Picasa account that you would like your family to have access to and a dropbox account that needs to be made available to your work colleagues. All of this can be organised though the multiple online services available. A potential problem here would be the companies in question not surviving. You may have paid them to allow for the service only to have them go bust making the process void.
* My suggestion and perhaps a better option all round, would be to make sure that all accounts are set up to the same email account. You would still write the list but without the passwords. Then just provide the username and password for that email address either in your Will or beforehand. Having an email address just for services could be prudent as then your personal emails wouldn’t be accessible to someone else. When you die, your Executor can go and reset your passwords for the accounts from that email address. If you change your password to this account you only have to update one. You may also want to add the executors email address as a recovery address so if they are locked out … they can still get in.
The only extra accounts that this may not work with would be banking accounts but as the information isn’t going to be released until they have seen your Will anyway, you may deem the log in information for these to be safe written in or attached to your Will.
Who gets what? Assigning digital assets
Depending on what you have through hardware to software and online accounts, you may wish for different people to have access as mentioned above.
You may want some things saved, passed along or deleted. While your wishes may conflict with the service providers terms and conditions, your Executor will find it useful information to know what you would have wanted.
Some digital assets may have monetary value or have funds associated with them like PayPal or Bitcoin. If you are anything like me, you could have accounts with stock image galleries or web asset portals that have outstanding credits available. Rather than let them expire or go unused you may want to give someone else the opportunity to use them.
Name a Digital Executor
The person who deals with your physical estate may not be the person you want to deal with your digital assets. A good example of this would be that I personally trust my father to deal with the physical estate but asking him to do anything with a computer would be asking more than his abilities allow.
A wish to have differing Executors for your physical and digital affairs is currently unlikely to be legal as the law states that an Executor has the duty/ability to wrap up all of your estate. A digital Executor is not an enforceable request and as such not legally binding but you may decide to name two people as Executor. They would be jointly responsible but of the understanding that they deal with their assigned and requested duties.
Store the information somewhere accessible but secure
This would be similar advice to what we would suggest for your Will and it would make sense to keep them both in the same place.
* Tell one or two trusted individuals of your plans. These could be your agreed executors or additional to them.
* Store somewhere accessible to one or two other people. This could be a safe, offsite secure storage, a bank vault or in the case of your digital affairs … an online service.
* Provide all information to get the ball rolling. A pin number, lock code or password that opens up the rest of the information (whether this be access to your email account or other service) needs to be stated in your Will or passed to your Digital Executor before you pass away.
Add it to your Will
It will be added as a request rather than a legal instruction but including the information as part of your Last Will and Testament is definitely a good idea. Just by stating who your Digital Executor is and the location of your list/wishes, you would be aiding them to wrap up your affairs in an orderly fashion.
When someone dies their Will becomes a public document. Through www.gov.uk you are able to search for the probate records of anyone you wish. For this reason, I would suggest you don’t include the log in details as part of your Will but as more of an accompaniment. Giving away your log in details may be overly private … particularly as passwords could be rather revealing depending on what they are!
Estate Planning for the Future
Ask anyone who works with technology and they will happily explain that computers are still relatively new and that iPhone X smartphone will be as obsolete as the iPhone 8 was in almost as quick a time (nerdy joke there).
As the world moves forward, there will be assets that we would have never previously thought of that need to be given thought and inclusion into your Estate Planning requirements.
Folium Consulting LLP keep our operating practices up to date and relevant to ensure that you are receiving a product that will be relevant and most importantly legal long into the future.
Should you want to talk to us about your situation and Estate Planning concerns, we offer FREE consultations in a place of your choosing. We will endeavour to work to your availability and you can have anyone you wish join us for the consultation.
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