Protect your digital legacy

*This content is brought to you by Brenthurst Wealth

By Rozanne Heystek-Potgieter, CFP® *

The laws that govern the fundamentals of a valid will has not changed since 1953, but the landscape in which estate planning and will drafting is done now, has gone through massive changes. Your executor is now responsible for far more than just ensuring your assets are distributed according to your will. One aspect that has ever increasingly become pertinent to how we draft wills and educate our clients on how to prepare for each possible scenario, is digital assets and digital legacy planning.

What are digital assets? Anything from social media accounts, cloud storage and associated digital files, crypto accounts, personal webpages, YouTube channel content, banking profiles, digital vaults to email accounts. We use the term asset rather loosely as it infers value, but that might not always necessarily be the case – in some scenarios the value is merely sentimental at best. 

Digital estate planning addresses the question as to will your loved ones be able to access your personal and financial digital profiles on your passing? Even with a will in place, being locked out of digital assets suddenly could cause undue distress, especially if they are linked to the payment of monthly expenses, or access to liquidity is urgently required. 

Here are some general pointers that we have put together to help you plan better:

1. Secure your important documents

Start by keeping key documents in a safe place, like a fireproof safe or cabinet. 

These should include your identity documents (such as passports and ID cards), marriage or divorce certificates, title deeds for property, and investment details. If you are the surviving spouse, keep a copy of your predeceased spouse’s death certificate and the documents relating to their estate.

2. Passwords and PINs

Make sure you have a clear list of all your important usernames, passwords, and PINs, including those for your phone, computer, bank accounts, and email. 

Keep this list updated and stored in a secure location. If you store it on your computer, make sure someone can unlock your device. A trusted person should always have access to this information as well as know of its location. This information is not to be included in the will itself, as the will becomes a public document when an estate is reported. You can add instructions in the will or a codicil in terms of the distribution of any of the digital assets.

3. Social media and digital accounts

Facebook allows for the removal or memorialization of accounts on someone’s passing, not only to secure the account from future logins but allow for the profile to be used as a space for all to continue sharing memories of the person who has passed away. 

There is an option to activate your Digital Legacy on your Apple iCloud account, where you can choose to add contacts to access and download certain data after your passing.

Take a moment to review the options for your social media profiles or cloud accounts to ensure your wishes are followed. Whether you want your accounts memorialised or closed, it is essential to leave clear instructions with your family or in your will.

4. Financial documents 

Compile details on investments, insurance policies (especially life insurance and funeral cover), and cryptocurrency. Sharing details on cryptocurrency is often overlooked, but it is taxed the same as other assets in your estate, without the information the Executor will not be able to recover this asset without the proper keys or passwords.

As with getting a will in place with a named Executor, preparing your life file and ensuring your digital legacy is accounted for takes effort, planning ahead and a bit of common sense. Too often, families are left struggling to access even the most basic of information because a certain aspect of their estate plan was not implemented. 

* Rozanne Heystek-Potgieter CFP ® professional, and a Fiduciary services specialist (non-practising attorney) at Brenthurst Wealth Val de Vie [email protected]

Read more about National Wills Week (16 to 20 September 2024) here: LSSA.

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