One of the most overlooked parts of estate planning today involves something most people use every day: their phone and their digital accounts.
For many people, their phone is the central hub of their financial and personal life. It holds access to bank accounts, investment platforms, email, contacts, photos, and important documents. In some cases, it is the only place where certain information exists.
After someone passes away, accessing that information is not always straightforward.
Why access is often limited
Most devices and accounts are protected by passwords, encryption, and biometric security such as fingerprint or facial recognition. These safeguards are designed to protect privacy and prevent unauthorized access.
Those protections do not disappear at death.
Financial institutions, email providers, and technology companies also have their own policies regarding account access. In many cases, they are not permitted to provide access to another person without proper legal authority, even if that person is a close family member.
As a result, it is common for families to be locked out of devices and accounts at the exact time they are trying to gather information.
The practical problems this creates
This issue often surfaces quickly.
Many people no longer receive paper statements. Bank accounts, credit cards, and investment accounts are accessed through apps or online portals. If no one else has access to those accounts, it may not be clear what exists or where to find it.
Families may not know:
- Which accounts are open
- What bills need to be paid
- Whether there are automatic payments set up
- Where important documents are stored
Even something as simple as locating an insurance policy or recent tax return can become difficult if it is only stored digitally.
In some cases, accounts go unnoticed for months. In others, payments are missed because no one knows they exist.
What counts as a digital asset
Digital assets cover a broad range of information and accounts.
This can include:
- Email accounts
- Online banking and investment platforms
- Retirement accounts
- Cloud storage and photo libraries
- Subscription services
- Social media accounts
- Digitally stored legal and financial documents
Some of these assets have financial value. Others have practical or sentimental importance. Both matter when someone is trying to manage an estate.
Legal authority still matters
Even when a family member knows that an account exists, access is not guaranteed.
Legal authority is still required.
A financial power of attorney can allow someone to access accounts during a person’s lifetime if they become incapacitated. After death, authority typically shifts to the executor or administrator once appointed through the Probate Court.
Until that authority is established, companies may refuse access.
This is not a matter of inconvenience. It is a legal requirement they are expected to follow.
Planning for digital access
This is an area where a small amount of planning can make a significant difference.
One step is making sure the appropriate estate planning documents are in place so the right person has legal authority when needed.
Another step is making sure information can be located.
This does not mean casually sharing passwords. It means creating a reliable system so that the right person can find what they need at the appropriate time.
Some people use password managers that allow for secure access by a trusted individual. Others maintain a written record of accounts and store it in a secure location. In either case, the goal is the same. Make sure important information is not lost or inaccessible.
It is also worth reviewing how accounts are set up. Some platforms allow you to name a legacy contact or designate what should happen to the account after death. These options are often overlooked.
Why this matters
Today, a significant portion of a person’s financial life exists digitally.
If no one can access that information, it becomes more difficult to identify assets, manage responsibilities, and carry out the estate plan.
Families are left trying to piece together information that should have been easy to locate.
With proper planning, that situation can be avoided.
Final thought
Estate planning is not limited to physical assets. Your digital life needs to be addressed as part of the overall plan.
Making sure the right person has authority, and making sure they can find what they need, can save time and reduce complications.
If you live in Georgia and want to make sure your estate plan accounts for both your physical and digital assets, our office is happy to help.
