What Happens to Our Online Accounts After We Are Gone?

How many online accounts do you hold? According to one source, the average person has around 100. At first glance, this may seem high, but when we consider email, social media, financial and online service accounts, the number can quickly add up.

Our dependence on our smartphones is undeniable, yet the digital world they connect us to often remains overlooked in estate planning. What happens after we are gone? A Wall Street Journal article is a reminder: While many digital assets hold little monetary value, they may carry sentimental value and overlooking their transfer can lead to consequences. One widow was unable to retrieve thousands of photos stored in her partner’s cloud account, while another couldn’t access her late husband’s Facebook page.

Why is planning for these assets important? Canada lacks consistent legislation giving the executor or attorney the automatic authority to deal with digital assets, with rules varying by province — if they exist at all. Saskatchewan was the first province to introduce legislation granting executors/fiduciaries access to digital assets. At the time of writing, only three other jurisdictions have followed: Prince Edward Island, New Brunswick and the Yukon. Even if laws do allow for authority, the reality is that access can be difficult if no provisions have been made by the deceased. Customer support for online accounts is often limited, creating challenges during what is likely an emotional time.

Here are four steps we can take to help provide future access:

1. Create a digital inventory. Creating an inventory of financial assets is often the first step in developing an estate plan. This should also be considered for digital assets. Keep a logbook of accounts, including usernames and passwords for access, and securely store and update it regularly. Given the growing number of digital accounts, a password manager may be helpful. These software programs maintain access information for our digital accounts, including account numbers, passwords and other important data you might need to leave behind.

2. Practice good digital housekeeping. Protect and secure your data, not just for legacy planning. This includes regularly backing up important files, contacts, photographs and other information stored on devices or the cloud and encrypting sensitive data.

3. Set up a legacy contact or plan. Did you know that many digital platforms and social media accounts allow you to designate a legacy contact? For Apple products such as iPhone or iPad, go to “Settings” and then tap your name. Under “Password & Security” select the “Legacy Contact” option. The system will generate an access key for your contact, which will need to be presented alongside a death certificate to access data. For Google, go to “myaccount.google.com” and tap “Data & Privacy,” then select “More Options” and look for “Make a plan for your digital legacy.” You can decide when Google should consider your account inactive and what will be done with your data, which can be shared with someone you trust or deleted by the system.

4. Update your estate plan. Make sure your will and power of attorney documents (or other directives; the names vary by province) include language specific to digital assets, giving a representative authority to access, manage, dispose of and distribute them.