Sharon Hartung’s Five Steps for Digital Estate Planning in 2022
Guest blog written by Sharon Hartung
“We all have a digital life, whether we recognize it or not. But we should acknowledge that managing our digital footprint, including our devices, accounts, and assets, is a reality to be reckoned with.”
Sharon Hartung
We’re all familiar with the feeling of excitement as we look forward to a new year. Holiday gatherings and time away from work provide us an opportunity to reflect and plan ahead. With the challenges we’ve all faced at home and work over this past year in dealing with the pandemic, one of the areas of our lives permanently impacted is our digital footprint. We may not have considered the extent of our online presence before lockdowns began, but after the onset of the pandemic, we’re socializing, sharing information, potentially collecting nonfungible tokens (NFTs), and wondering what the heck is the metaverse.
We all have a digital life, whether we recognize it or not. But we should acknowledge that managing our digital footprint, including our devices, accounts, and assets, is a reality to be reckoned with. As with other aspects of our lives, managing our digital lifestyle must factor into our New Year’s resolutions. If you’re not a resolution maker, you should still consider digital assets in your estate planning. Digital assets are our memories, money, and financial records, which are now in digital form instead of paper. To tune-up our digital lives to prepare us for the year ahead, here are five simple steps:
1. Password Managers: Consider selecting and installing a Password Manager to manage your digital accounts. The tech industry has recommended password managers to manage the growth of our digital footprint for quite some time. How many of us use online accounts to manage our finances and households? The convenience provided by online accounts and apps all depends on passwords. Reflecting on our list of accounts and the colourful tiles that populate our tablets and mobile phones reminds us of how digitally dependent we’ve become. If you’re hesitant to use a Password Manager for personal use (yet another app on your devices), the good old-fashioned way of password management still works. Write down the names of your accounts, your username, and your passwords, and store the list in a safe and secure place.
2. Cybersecurity: Cybersecurity awareness is a dependency when operating in our digital world. The savvy digital participant will fare better in the online world, which is constantly under threat and intrusion. Just as we’ve seen the COVID-19 virus mutate, the bad actors in the cyber world also vary their tactics, readying them to strike at account vulnerabilities. Thus, consider following a cybersecurity security expert on social media, and adopt simple tips over time. Cybersecurity is also about reducing your digital footprint. If an account is not required, delete it. I’ve found since the pandemic began, many companies have made it easier to delete accounts. A simple search in the help section of an app should provide an account holder with steps to delete their account. Many password managers will alert the user to passwords that are re-used as well as other security recommendations.
3. Talk about tech with your loved ones: According to CIRA.ca (Canada’s Internet Factbook), more than 45% of us help out others when setting up accounts, adjusting user preferences, or providing tech support. Helping others with technology is more common than we think. Consider sharing helpful online tips and hints about how to engage safely on the internet with those who seek your advice. Take the time to show users how to update privacy settings and keep their accounts secure. I recommend checking out The White Hatter. They have a YouTube channel and a free or by-donation e-book called Parenting In An Online World: Internet Safety, Security, Privacy, and Digital Literacy. It is a great read for all ages.
4. Digital assets in estate planning: In Digital Asset Planning 101, all the same basics apply for will and estate planning, such as getting a will. This topic can be intimidating, and I suggest asking a family member or friend for the name or referral to an estate advisor they have used for will and estate planning. There are also emerging options for simple estates such as Epilogue, Canadian Legal Wills, and Willful. Once you’ve got the will done, talk to your named fiduciary (executor or estate trustee) about the information they will need to address not only your physical assets but also your digital assets. We’re facing a future of electronic wills and other legal documents for estate planning, so stay tuned as this area evolves. #estatetech
5. Digital assets planning: This is a new topic for the estate industry and the tech industry. To get started, consider looking at your social media and email accounts. Some tech providers now offer pre-planning tools, such as Google’s Inactive Account Manager, Apple’s new Digital Legacy Program, and Facebook’s Legacy Contact. Check out Epilogue’s social media will to get started and Epilogue’s blog for articles about each major social media account. If you have digital assets of significant sentimental and financial value, consider getting advice on addressing the legal, technical management and tax aspects of these types of assets in estate planning.
Undoubtedly, 2022 will be another year with increasing digital dependency. If working, living, and socializing throughout the pandemic has taught us one thing, it is that we can still survive and thrive––it’s just enabled by digitization. Look after your digital footprint and be cybersecure.
This blog is not intended to be legal advice and should not be relied on as such. If you require legal advice, please contact a legal professional concerning your particular circumstances.