Today more and more of our assets only exist in a digital world. A growing number of people opt for digital records. Gone are monthly bank statements and bills that arrive in the mail.
All of these bank accounts and investment accounts are protected by passwords and most accounts have privacy agreements with the account holder.
So what happens if you die tomorrow? Does anyone know your passwords? Even if you have told your lawyer or your executor your passwords, have those passwords now changed? Worse still, what if your laptop or cell phone is destroyed in an accident when you die? How will your executor know where your money is and what bills need to be paid? In the past, executors have been able to go to the deceased’s home and collect the paperwork they need. Could your executor still do this?
It’s a good idea to keep a physical list of your current assets, accounts, debts and monthly bills so your executor knows which institutions to contact on your death. There is also password software you can download to keep multiple passwords securely in one place and you can give your executor instructions on how to access it.
FAQ
1) What kind of records will my executor need to administer my estate?
It’s helpful for your executor to have a list of all of your accounts (e.g. bank accounts, investments, life insurance policies) including the account numbers, any debts (credit cards, loans, mortgages), and any other assets you own (property, vehicles, etc.) and it’s best if your executor can access the most recent statements. It’s also helpful to have a copy of your most recent tax return and notice of assessment, and your executor should also know where to find your Will.
2) What type of software is available to store my passwords?
There are a number of desktop password managers and mobile apps that can securely store all of your passwords. These include Bitwarden, 1Password and NordPass, among others. Some will charge a monthly or annual premium.
3) What about my social media accounts, loyalty programs, online memberships and utility accounts?
Leaving a list of all of your online accounts and their login details will help your executor close and delete online memberships. Your executor will likely need to close utility accounts such as electricity, gas, and internet so leaving a list of the account numbers will make this easier for them. You can also often add a “legacy contact” to your social media accounts that allows someone to manage and/or delete the accounts after your death.
For more information on estate administration, give Deborah Todd Law a call at 250-590-6226 to book an appointment, or use our contact page.
Deborah A. Todd
