By Hannah Rodgers, Assistant Vice President, Trust Officer
As we go forward in the digital age, more and more of our lives are being lived behind a log-in portal. For many, all utilities are being handled via an online account, and statements are emails saved in an email account that is also password protected. This can cause strain on your loved ones when you pass, as they will need access to the information found on statements to handle your final affairs.
To ease that strain, there are strategies that can be employed to get this information to them at the time of your passing, while also protecting your digital information.
First and foremost, take stock of all relevant accounts your Executor might need to know about. Are your utilities being handled online? Are you receiving only e-statements for your financial accounts, including bank accounts, retirement accounts, and loan accounts? Do you have social media accounts that will need to be deleted? Is your phone locked with a PIN? What about your computer?
Once you have a working list of what accounts might need to be accessed, you’ll then need to determine how you are going to secure this information. There are password management software options that can create, track and save your passwords for you. Like all digitally held information, there is a hacking risk, but the chances should be minimal with a reputable password manager. There is also the concept of password splitting, where you give half of a password to one person, maybe a spouse, and half to another person, maybe an attorney you are working on your estate planning with. Unfortunately, this strategy can be rather complex, requires cooperation, and is not responsive to changes in passwords or necessary updates.
If you prefer to keep a paper list of passwords, the question then becomes where that list should be held to ensure security. Best practice would be keeping such a list at the same location as your estate planning documents so it is all available to your Executor. To ensure security, estate planning documents as well as any supplemental information, like a password list, can be held in a fireproof safe at home, with the drafting attorney, or with a potential corporate fiduciary if they are holding the original documents.
For information about the role Northwest Bank and Trust can play in your estate plan, call us at 563-388-2631.