Believe it or not, about two-thirds of American adults do not have a Will in place. And the reasons they give for not having a Will vary. Many people just don’t like to think about their own mortality. Some believe they don’t need an estate plan because they aren’t wealthy. And some think that estate planning can be put off until they are of retirement age. But the truth is that dying without a Will in place can lead to heartbreak, stress, confusion and costly court proceedings for your loved ones.
Your Will may be the most important thing you ever write. Here’s why:
- Your Will allows you to clearly state who gets your assets when you die. The most essential reason to make a Will is to designate who will get your property when you die. Without a Will (or other plan, like a living trust), your state laws determine how your property will be distributed — usually to your closest relatives, like your spouse, children or parents.
- Your Will allows you to name an executor for your estate. You can use your Will to name an executor (or personal representative in some states) to handle the task of making sure that your estate plans are carried out according to your wishes. Without a Will, a court will appoint someone to do this job.
- Your Will allows you to name a guardian to take care of your children. Your Will is the only place to nominate a guardian to care for your minor children, and a property manager to take care of your children's property. When you bequeath property to minor children through a Will or trust, you can also leave instructions about how that property should be managed. If you die without a Will, a court will decide who should care for your kids and assign the rights to manage the assets you leave them.
- Your Will allows you to create a personal legacy with charitable giving. Without a Will, you’ll miss the opportunity to continue to make a difference – even after your lifetime – for the charitable organizations that are important to you. Additionally, including charitable gifts in your estate plans can also minimize the impact of taxes and other costs to your estate upon your death. The right planned gift can be used strategically to maximize your assets’ potential benefit – both for your loved ones and for the causes that mean the most to you.
- Your Will allows you to appoint a "digital executor." In this Internet age, it's important to make plans for who will have passwords to access your computer, email, social media and financial accounts, and to leave directions on how those accounts are to be handled when you’re gone.
And don’t forget: Making a Will is not a “one-and-done.” The Will you create at age 50 will likely look very different from what you want at age 75. If you already have a Will in place, right now is an excellent time to review it so you can be sure your Will reflects your current wishes and information.
Estate planning can provide you with a sense of empowerment and peace of mind. If you would like to explore your options, contact David Toll, JD, senior associate vice president in Drexel's Office of Gift Planning, at 215.895.1882 or giftplanning@drexel.edu.Traditional estate planning typically involves a great deal of thoughtful consideration about how to divide money, personal property and family heirlooms among our loved ones, in addition to leaving a personal legacy to support charitable causes that mean the most to us. But now there is something else to add to the mix: digital assets.
What Are Digital Assets?
Your digital assets run the gamut from online bank accounts, cryptocurrency accounts and bill payment accounts to photo-sharing sites, social media accounts, websites and online storage accounts. They can also include email accounts, retail “rewards” accounts and accounts related to your personal interests, such as frequent flyer accounts or even Pinterest and iTunes.
Who Has Access to Your Digital Assets?
While some of these assets have primarily sentimental value, others can have significant financial value. And, if digital assets aren’t included in your estate plan, then your heirs might not know about that online stock or that bank account — and those potentially valuable assets could be lost forever.
Because protecting your privacy is paramount when you are interacting online, it is now vital to be explicit in giving your heir(s) access to your digital assets in your estate plans. At the very least, be sure to specifically give permission in your will for your executor to access your online accounts. A master list of accounts and accompanying passwords should be kept in a safe place, such as a safety deposit box, and your estate document(s) should include instructions regarding where the passwords are located. Be sure to provide details for how you’d like every aspect of your online world handled after your death, including social media profiles — should they be cashed out, closed down or left online as a memorial?
And most importantly: keep your information current. Usernames, passwords and lists of accounts must be updated regularly! Keep in mind that nearly every type of online account has a “terms of service” agreement, most of which are non-transferable. There are also several federal laws that prohibit certain unauthorized access to computers and online accounts as well as sharing deceased users’ account contents with relatives. Originally designed to prevent online fraud, these laws can keep surviving family members from accessing information related to a deceased loved one’s estate.
Remember: Digital Assets are Just That — Assets.
Including your digital assets in your estate planning can protect your privacy, even after death, and ease the management of your estate for your loved ones. Plan for your digital assets in the same way you would any other valuable tangible (or intangible) asset. After all, digital assets are today’s shoeboxes of photos, letters and other mementos. Planning can help to preserve this facet of your personal legacy in digital form.
Questions? Contact David Toll, JD, senior associate vice president in Drexel's Office of Gift Planning, at 215.895.1882 or giftplanning@drexel.edu.