Wealth Planning Commentary – November 4, 2024

Digital Death and Incapacity Planning

Legacies today extend well beyond traditional photo albums and letters. Today, an online presence—including social media and email— forms a substantial part of one’s personal and financial legacy. Digital death and incapacity planning addresses the transfer and management of these online assets. This planning helps ensure that personal wishes are honored while reducing the administrative and emotional burden on loved ones.

Before exploring specific strategies, it’s essential to establish basic estate planning documents. Every person should have a durable power of attorney (POA), healthcare proxy, and living will to empower family and designated agents in critical situations. A will or revocable trust is also essential, as it clarifies asset distribution. These documents can include language enabling designated individuals to access digital accounts or tools.

In addition to creating basic estate planning documents, ensure they’re accessible to family and designated agents. Digital storage solutions provide a secure place for storing estate documents and allow designated family members and advisors to access them when needed (talk to your Wealth Manager about our storage solution). Open communication with decision-makers named in these documents is a crucial step to reducing potential administrative friction.

Password management also plays a vital role in digital estate planning. Password managers offer encrypted storage and sharing options and allow individuals to grant secure account access to selected family members and agents. These services can be accessed across multiple devices, enhancing convenience. Alternatively, some use a password-protected document in Google Drive or Dropbox to organize and manage passwords. Those who prefer a physical list stored securely should be aware that frequent password changes can make this method challenging.

Using legacy contact options can streamline account management on digital platforms. Social media platforms like Facebook and Instagram allow users to designate a legacy contact to manage or close accounts. Apple and Gmail provide similar options through legacy contacts and inactive account managers. Without these arrangements, executors may need a death certificate and court order to gain access, which can delay account management.

When planning for incapacity, it’s also a good idea to designate representatives for Social Security and Medicare benefits. The Social Security Administration allows a beneficiary to name a representative payee (it does not accept traditional power of attorneys (POA)). Medicare permits a healthcare POA to manage claims and appeals, though online account access may be restricted.

Thoughtful digital planning is an integral part of an orderly estate. Those who have navigated the estate settlement process understand that an organized, accessible estate is one of the greatest legacies you can leave to heirs.

Please contact your Wealth Manager with questions about digital death and incapacity planning.

Disclosures

Investment advisory services offered through Robertson Stephens Wealth Management, LLC (“Robertson Stephens”), an SEC-registered investment advisor. Registration does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. This material is for general informational purposes only, has not been tailored to the needs of any specific client, and should not be construed as individual tax, legal or investment advice. Please consult with your individual tax advisor prior to making any tax-related decisions. The information contained herein was compiled from sources believed to be reliable, but Robertson Stephens does not guarantee its accuracy or completeness. Investing entails risks, including possible loss of principal. Past performance does not guarantee future results. This material is an investment advisory publication intended for investment advisory clients and prospective clients only. Robertson Stephens only transacts business in states in which it is properly registered or is excluded or exempted from registration. A copy of Robertson Stephens’ current written disclosure brochure filed with the SEC which discusses, among other things, Robertson Stephens’ business practices, services and fees, is available through the SEC's website at: www.adviserinfo.sec.gov. © 2024 Robertson Stephens Wealth Management, LLC. All rights reserved. Robertson Stephens is a registered trademark of Robertson Stephens Wealth Management, LLC in the United States and elsewhere.