In a modern world, our financial lives are increasingly digital.
Online banking accounts, investment apps, trading platforms and crypto exchanges hold the keys to our personal wealth.
But like they say: You cant take it with you.
Getting your affairs in order? Here arefive estate planning movesyou can make today — even on a budget.
So what happens to the money in those online accounts after you die?
Who gets it and how does that work?
Failing to make arrangements for your digital assets can create stress and hardship for the people you love.
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Heres what you’re gonna wanna know to fill in the digital gaps.
What Is a Digital Estate Plan?
A traditional estate plan spells out where your all your belongings, property and money go after you die.
A digital estate plan focuses on your online accounts and assets.
How to Set Up Your Digital Estate Plan
1.
Compile a list of your digital account information in a document or spreadsheet.
Just see to it a family member or trusted friend knows how to find it after youre gone.
ONeill also suggests saving digital copies of your list in multiple locations.
Many password managers also have built-in sharing capabilities.
Keep in mind, digital estate planning includes more than just financial accounts.
Then the money is immediately transferred to the beneficiarys control.
it’s possible for you to usually find these forms in the account tweaks of your online financial accounts.
Beneficiary forms are usually quick and easy to fill out.
you could also (usually) name more than one beneficiary.
Remember: you could always change your designations later.
In fact, its a good idea to review beneficiaries once a year or so, experts say.
Thats because these designations override your will.
How Do Digital Assets Get Passed Down When You Die?
There are four main ways your assets get passed down to heirs.
This is often necessary whether you have a will or not.
Think of it as your voice after you pass away.
Otherwise, state law decides who inherits your stuff.
Itll back up your family money, too.
Going to court without a will can cost thousands of dollars, McClanahan said.
You cancreate a will online for $100 or less but experts caution against a DIY approach.
Assign a Digital Executor
Its best to name a digital executor in your will.
A digital executor is the person who is responsible for handling your digital assets after youre gone.
Choose this person carefully.
check that to communicate with your intended digital executor and explain whats expected of them.
Plus, its unethical.
Your loved one might owe money to the IRS or have other debts youre unaware of.
If you transfer money out of their accounts in an effort to avoid probate, youre committing a crime.
Probate sucks but its necessary, Park said.
Trying to avoid it like this could get you into a lot of trouble.
What Happens If You Die Without a Will?
Dying intestate, or intestacy, is the legal term for dying without a will.
Each state has its own intestate laws that determine who gets your assets after you die.
It can be a grueling process lasting several months or even years.
Unmarried crypto investors take note: Do you really want your parents to inherit your bitcoin fortune?
Would they appreciate it or even take the time to access it?
Without a will, decisions like this are out of your control.
Create a Legacy Contact for Your iPhone and Facebook
Money isnt everything.
Some platforms make it easy for your loved ones to access these digital accounts after you die.
Apple, Google and Facebook are three of the biggest.
But take time to consider all your digital accounts.
Your legacy contact wont be able to see your messages or post as you after youre gone.
Here arestep-by-step instructionson how to assign a legacy contact to your Facebook account.
After that, your trusted person can view the data on ApplesDigital Legacy websiteand download what they want.
You must be fully updated with the latest operating system software to access Legacy Contact.
They also wont be able to access your Keychain, so usernames and passwords wont be available.
Here are instructions from Google onhow to set it up.
Youll also provide a phone number and/or email address for yourself.
Google will contact you a month before your set time is up to confirm youre gone.
Rachel Christian is a Certified Educator in Personal Finance and a senior writer for The Penny Hoarder.
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