Controlling your digital legacy

digital asset transfer part P: a planner’s road map

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Late final yr, Brian S’Connell raised consciousness across the issue of planning for a client’s digital estate as a visitor blogger on the Cavalier Strategy. Since then, there was a flood of protection on this subject from a number of media retailers, reinforcing the identical factors that I’Connell raised in his publish.

There are, as is often the case, some extra twists and turns to this subject, and Steve Parrish, a frequent contributor to Forbes and National Advanced Solutions Director with the Principal Financial Group, makes some stable suggestions in his current perception on this matter.

the hidden traps

Even doing every part proper isn’t any assure. There are subtleties on this growing space of planning which can be troublesome to anticipate.

Case in level is the instance from Parrish’s column on Forbes.com concerning the trouble a widower faced upon his spouse’s dying with an digital banking account.

It appears that the digital entry to the account in query was tied to the deceased spouse’s consumer identify and password. The financial institution shut down the username and password upon her demise as is their coverage. The account was effective in each attainable method save one: He merely couldn’t entry it electronically upon her dying no matter the truth that it was a joint account and he had a energy of lawyer.

They did all the pieces proper, besides arrange particular person entry credentials for every of them.

Lesson realized.

The different space of publicity explored in Parrish’s column is how digital assets are handled in the business world, notably within the age of Bring Your Own Device (BYOD) – units together with private sensible telephones, laptops, tablets and others used for enterprise.

IT departments wrestle with these points on the time of an worker’s separation from the corporate. Imagine the magnitude of the problem when that worker has handed away versus merely transferring on to the subsequent step of their profession?

What’s on the system? How can the machine be legally accessed?

Big questions with tough solutions because of legal guidelines designed to supply fraud safety. As Parrish factors out, there are potential authorized points for each the employer and the heirs of the deceased worker.

lack of uniformity

As with many different facets of property planning, the particular challenges a shopper could face are sometimes depending on the place they occur to stay.

While some states have but to enact any on this space, there are a variety of states, eighteen in truth,that have laws on the books, legal guidelines at the moment proposed or have seen proposed laws in latest historical past.

While there are some commonalities among the many laws, state to state variation makes it vital to know the present regulation within the consumer’s state of residence, in addition to perceive what adjustments must be made to their plan ought to they transfer out of state.

a frequent answer

Even with the brand new features of this challenge launched by Parrish in his columns, the prescription stays the identical: Get organized.

Back in November, we launched our Digital Organizer to assist advisors plan the administration of their shoppers’ digital property upon their demise. While it’s a stable useful resource for a lot of shoppers, it didn’t tackle shoppers who’re staff in a BYOD setting, nor did it tackle that very same problem from the attitude of the enterprise proprietor.

That leads us to immediately’s introduction of the expanded  Planning Organizer, up to date to deal with the aforementioned extra challenges: Employer-owned digital property saved in a BYOD setting and the distinctive wants of the enterprise proprietor and the administration of their digital belongings.

Download our expanded Digital Estate Planning Organizer today.

The actual query is that this: How does an advisor begin to implement this in his or her follow?

It begins with an consciousness of the problems and an understanding that each prospect and shopper faces these pointswhether or not they understand it or not. From there, it’s a matter of a discovery course of that begins with a easy query:What have you ever completed to plan for the instant transition of your digital belongings?

There will virtually actually be a little bit of clean stare, adopted by “What do you imply?”.

Armed with the information and the sources wanted to stroll them by the problems, you’ll be able to then information your consumer or prospect by the method of planning for his or her digital estate as part of your regular planning course of.


Late last year, Brian O’Connell raised awareness around the issue of planning for a client’s digital estate as a guest blogger on the Cavalier Strategy. Since then, there has been a flood of coverage on this topic from multiple media outlets, reinforcing the same points that O’Connell raised in his post.

There are, as is usually the case, some additional twists and turns to this issue, and Steve Parrish, a frequent contributor to Forbes and National Advanced Solutions Director with the Principal Financial Group, makes some solid recommendations in his recent insight on this topic.

the hidden traps

Even doing everything right is no guarantee. There are subtleties in this developing area of planning that are difficult to anticipate.

Case in point is the example from Parrish’s column on Forbes.com regarding the trouble a widower faced upon his wife’s death with an electronic banking account.

It seems that the electronic access to the account in question was tied to the deceased wife’s user name and password. The bank shut down the username and password upon her death as is their policy. The account was fine in every possible way save one: He simply could not access it electronically upon her death regardless of the fact that it was a joint account and he had a power of attorney.

They did everything right, except set up individual access credentials for each of them.

Lesson learned.

The other area of exposure explored in Parrish’s column is how digital assets are handled in the business world, particularly in the age of Bring Your Own Device (BYOD) digital assets – devices including personal smart phones, laptops, tablets and others used for business.

IT departments struggle with these issues at the time of an employee’s separation from the company. Imagine the magnitude of the challenge when that employee has passed away versus simply moving on to the next step in their career?

What’s on the device? How can the device be legally accessed?

Big questions with difficult answers thanks to laws designed to offer fraud protection. As Parrish points out, there are potential legal issues for both the employer and the heirs of the deceased employee.

lack of uniformity

As with many other aspects of estate planning, the specific challenges a client may face are often dependent on where they happen to live.

While some states have yet to enact any legislation in this area, there are a number of states, eighteen in fact, that have laws on the books, laws currently proposed or have seen proposed legislation in recent history.

While there are some commonalities among the legislation, state to state variation makes it critical to know the current law in the client’s state of residence, as well as understand what changes need to be made to their plan should they move out of state.

a common solution

Even with the new aspects of this issue introduced by Parrish in his columns, the prescription remains the same: Get organized.

Back in November, we introduced our Digital Estate Planning Organizer to help advisors plan the management of their clients’ digital assets upon their death. While it’s a solid resource for many clients, it did not address clients who are employees in a BYOD environment, nor did it address that same issue from the perspective of the business owner.

That leads us to today’s introduction of the expanded Digital Estate Planning Organizer, updated to address the aforementioned additional challenges: Employer-owned digital assets stored in a BYOD environment and the unique needs of the business owner and the management of their digital assets.

Download our expanded Digital Estate Planning Organizer today.

The real question is this: How does an advisor start to implement this in his or her practice?

It begins with an awareness of the issues and an understanding that every prospect and client faces these issues whether they know it or not. From there, it’s a matter of a discovery process that starts with a simple question: What have you done to plan for the immediate transition of your digital assets?

There will almost certainly be a bit of blank stare, followed by “What do you mean?”.

Armed with the knowledge and the resources needed to walk them through the issues, you can then guide your client or prospect through the process of planning for their digital estate as part of your normal planning process.

learn more

Fill out the form below to download our expanded Digital Estate Planning Organizer today.

Eleanore

Eleanore

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