Creating a Digital Estate Plan: Managing Your Online Legacy

As we increasingly live our lives online, the question of what happens to our digital assets after we’re gone has become crucial. Social media accounts, email, cryptocurrencies, cloud storage, and online subscriptions all form part of our digital footprint. Without a digital estate plan, managing these assets can be confusing and stressful for loved ones.

In this guide, we’ll explore how to create a comprehensive digital estate plan to secure your online legacy.

What Is a Digital Estate Plan?

A digital estate plan is a document that outlines how your digital assets should be managed, accessed, or deleted after your death. It serves as a roadmap for your executor or loved ones, ensuring your online presence is handled according to your wishes.

Why Is a Digital Estate Plan Important?

Many people overlook their digital assets in estate planning, leading to:

• Access Issues: Loved ones may struggle to retrieve important information or close accounts.
• Identity Theft Risks: Unsecured accounts can be hacked, leading to fraud or identity theft.
• Emotional Distress: Unresolved digital accounts can cause emotional strain for surviving family members.

Creating a digital estate plan ensures:

• Your wishes are respected.
• Your loved ones can efficiently manage or close your online accounts.
• Important digital assets, like photos or cryptocurrencies, are preserved.

Steps to Create a Digital Estate Plan

1. Take Inventory of Your Digital Assets

Start by listing all your digital assets, including:

• Financial Accounts: Online banking, investment platforms, and cryptocurrencies.
• Social Media: Facebook, Instagram, LinkedIn, Twitter.
• Email Accounts: Gmail, Yahoo, Outlook.
• Cloud Storage: Google Drive, Dropbox, iCloud.
• Subscriptions: Netflix, Spotify, Amazon Prime.
• Digital Marketplaces: eBay, Etsy, PayPal.
• Intellectual Property: Blogs, websites, or creative works stored online.

2. Identify Access Information

Document usernames, passwords, and security questions for each account. Use a secure method, such as a password manager, to store this information. Some popular password managers include:

• LastPass
• 1Password
• Dashlane

3. Determine Your Wishes for Each Asset

Decide how each digital asset should be handled:

• Preserve: Photos, videos, or blogs that you want to pass on.
• Transfer: Financial assets like cryptocurrencies or monetized platforms.
• Delete: Social media or subscription accounts you no longer want active.

4. Appoint a Digital Executor

A digital executor is someone responsible for managing your digital assets after your death. In Canada, appointing a digital executor may not be legally binding in all provinces, so ensure this individual is named in your will to avoid disputes.

Legal Considerations for Digital Estate Planning

Include Digital Assets in Your Will

Update your will to include instructions for your digital assets. Specify:

• Who should inherit certain assets (e.g., intellectual property or monetized platforms).
• Whether certain accounts should be closed or preserved.
• Your appointed digital executor’s role.

Consult an estate lawyer to ensure your will aligns with Canadian laws. The Canadian Bar Association provides resources on wills and estates.

Understand Terms of Service Agreements

Every platform has unique terms of service, which may restrict access after death. For example:

• Facebook: Allows you to designate a legacy contact or memorialize your account. Learn more on Facebook’s Help Centre.
• Google: Offers an Inactive Account Manager tool to decide what happens to your account after inactivity. Visit Google Account Help for details.
• Apple: Requires a court order to access a deceased user’s account.

Understanding these agreements helps you provide clear instructions in your estate plan.

Protect Privacy and Security

• Use encryption for sensitive files and data.
• Regularly update your passwords to protect accounts from unauthorized access.
• Ensure your executor has instructions for securely accessing your password manager.

Tools to Manage Your Digital Estate

Password Managers

Password managers securely store login credentials, ensuring your executor can access them easily. Examples include:

• Bitwarden
• Keeper

Online Estate Planning Services

Some services specialize in digital estate planning, such as:

• Everplans: Offers tools to organize your estate and share it with loved ones.
• Clocr: Focuses on digital asset management and legacy planning.

Managing Cryptocurrencies in Your Estate Plan

Cryptocurrencies like Bitcoin or Ethereum present unique challenges due to their decentralized nature. Key steps include:

Document Wallet Information:

• Include public and private keys.
• List platform access details for exchanges like Coinbase or Binance.

Educate Your Executor:

• Ensure they understand how to manage, transfer, or liquidate cryptocurrencies.

Store Keys Securely:

• Use cold storage (offline hardware wallets) for added security.

The Canadian Securities Administrators provides guidance on cryptocurrency investments and estate planning.

Social Media Management After Death

Memorializing Accounts

Platforms like Facebook and Instagram allow accounts to be memorialized, preserving content while preventing unauthorized access.

• Facebook: Assign a legacy contact to manage your memorialized account.
• Instagram: Requires a memorialization request from a family member or friend.

Deleting Accounts

For accounts you want deleted, include instructions and access details in your digital estate plan. Some platforms require proof of death, such as a death certificate.

Preserving Digital Memories

Your photos, videos, and creative works are valuable digital assets. To preserve these memories:

Back Up Regularly:

• Use external hard drives or cloud services like Google Photos or Amazon Photos.

Organize Files:

• Create folders and use clear naming conventions for easy navigation.

Share Access:

• Provide family members or friends with access to these files as part of your plan.

Common Mistakes to Avoid

Neglecting to Update Your Plan

As technology evolves, so do your digital assets. Regularly review and update your inventory, passwords, and wishes.

Failing to Appoint a Trusted Executor

Choosing an executor without technical knowledge can lead to complications. Select someone familiar with digital tools or provide them with guidance.

Overlooking Terms of Service Agreements

Assuming your executor can access all accounts without considering terms of service may lead to legal or logistical challenges.

Steps to Get Started

Take Inventory: List all digital assets and their login credentials.

Decide on Management: Specify how each asset should be handled.

Choose a Digital Executor Select a trusted individual and include them in your will.

Securely Store Information Use password managers or encrypted files.

Consult Professionals Work with estate lawyers to ensure your plan is legally sound.

Resources for Further Guidance

• Canadian Bar Association: Guidance on estate planning.
• Canada’s Office of Consumer Affairs: Tips on protecting personal information.
• Google Account Inactive Manager: Manage your Google account after death.

Creating a digital estate plan ensures your online legacy is handled according to your wishes, reducing stress for your loved ones and protecting your valuable digital assets. By taking inventory, securing access information, and consulting professionals, you can craft a plan that reflects your values and priorities. Start today to safeguard your digital footprint and leave a meaningful online legacy.