'Issues' for Younger People

While some people might be happy their relatives can't get access to their email or other accounts, others are taking matters into their own hands. As attorneys, we are facing new issues for this generation. Savvy folks in their 30’s are requesting specific instructions for their Facebook page. Who would have ever thought?

This all raises the question: How do you protect your sensitive data while you're alive while at the same time ensuring your heirs have access to the necessary account information once you're gone? It's not as though handing out your passwords is always a good idea.

One solution is to give a lawyer or trusted relative all the information. Be sure to put this information in your will and/or estate plan and dont neglect to update it as needed. Another idea: Divvy up different accounts to different people. Or, store the information in a safety-deposit box or home safe -- just make sure someone can gain access to the box or safe.

There are also companies that aim to help you sort through these issues. One source is Legacy Locker. It allows you to store all log-in and password information for your online accounts as well as leaving arrangements for sending it to the appropriate people upon your death. Others have features such as writing and storing letters to be sent to relatives.

The bottom line today is that in our ever changing technological world, protecting assets has become even more tedious. Not only is it a good idea to have an updated estate plan but one that reflects everything you use in your day to day life.

Creating an Estate Plan Today or Updating One Needs to Address Areas That Were Once Never Considered

If you have a will detailing your assets, make certain that you create it or update it to include not only the list of financial accounts but your usernames and passwords, too! Without log-in information, survivors usually need to go to court for legal authority to gain account access. The process varies from state to state; it doesn't always require a lawyer but it always takes time. In addition, the process can involve the heir approaching the individual online companies to heed her authority - a task that can be very frustrating. Many married couples today already face this issues when trying to get a simple balance on a credit card that is only in one spouse name. Companies today are reluctant to release any information at all-regardless of avoiding potential litigation for personal information violations.

Try contacting customer service and telling them, 'I've been appointed as my late brother's administrator. Please give me his user ID and password”. Eventually, of course, this type of problem is solved when you can reach a real human being who doesn't act like this is the first customer ever to die. But these people have to be sought out within every institution.

The process can be even more complicated if someone is incapacitated rather than dies. If there's no power of attorney, then you have to have a guardian or conservator appointed to have access to these records. Furthermore, some companies won't release any information without a specific court order.

The time to gather all of this information can be lengthy and the costs associated with it, can be more than most families expect. It is definitely an area that can be avoided if you plan for it in your estate plan or be sure to update your existing plan with all of your usernames and passwords.

Why should I pay a lawyer a lot of money for some simple documents?

You can buy software that produces most of the estate planning documents an attorney will prepare for you. Using such documents could turn out all right for you and your heirs, but things could go horribly wrong as well, and you'll never know if you did it right until it's too late. You could end up paying a nursing home unnecessarily or your heirs could pay unnecessary taxes or expend legal fees fighting each other.

Only a qualified attorney can educate clients on what issues they should be aware of in their individual circumstances and then recommend appropriate language to deal with the client's specific situation. Do you have a taxable estate? Do you own significant amounts of tax-deferred retirement plans? Do you know how to fund the revocable trust provided on the computer program? Is there anything about your estate that is unusual, such as having a disabled child? In short, if there's anything about your situation that's not plain vanilla, you need to see a lawyer. And only a lawyer can determine whether your situation qualifies as "plain vanilla." As with joint accounts, the problems you may create by not getting competent legal advice probably won't be yours, but may well be your children's. Do you want to risk leaving that legacy?