It’s amazing how much of your life and the things you value are accessed by some kind of digital connection with a username and password. In today’s digital age, our online lives often mirror
our physical ones. From banking and investments to social media and online shopping, we
interact daily with numerous websites and services. This digital footprint, often called a digital
estate, can be complex and valuable. Organizing and protecting your digital assets is essential to
safeguard your financial future.

Understanding Your Digital Estate

Your digital assets encompass things you can access through a computer, tablet, smartphone, etc.
including:

  • Financial Accounts: Bank accounts, credit cards, investment accounts, retirement plans, and insurance policies
  • Online Services: Email accounts, social media profiles, streaming services, and online shopping accounts
  • Other Digital Assets: Digital photos, videos, documents, and intellectual property

Why Organize Your Digital Estate

  1. Accessibility: In case of unexpected events, having a well-organized digital estate
    ensures your loved ones can easily access your accounts and information.
  2. Security: A disorganized digital estate increases the risk of identity theft and
    unauthorized access to your personal information.
  3. Financial Planning: A comprehensive digital estate inventory helps you track your
    financial assets and liabilities, facilitating better financial planning.
  4. Legacy Planning: If you have digital assets of sentimental or financial value, organizing
    them help preserve your digital legacy for future generations.

Steps to Organize Your Digital Estate

  1. Inventory Your Accounts: List all your online accounts, including usernames,
    passwords, and account numbers. Consider using a password manager to store this
    information securely. These must be kept in a safe place.
  2. Categorize Your Accounts: Group your accounts based on their purpose (e.g., financial,
    social media, online shopping).
  3. Review and Update: Regularly review your account list, adding new accounts and
    removing inactive ones. Update your passwords periodically to enhance security.
  4. Designate a Digital Executor: Choose a trusted individual to manage your digital estate
    as your fiduciary in case of death. Many states, including New York, have versions of
    The Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA).
    RUFADAA provides a basic framework for how the state and an Executor, Fiduciary, or
    Attorney should manage someone’s digital assets after death or incapacitation. Create
    instructions for assigned people to access your computer, email, and online accounts in your absence. Consider working with an attorney to update your estate plan to provide instructions for digital property as a form of a digital “will.”
  5. Back-Up Your Data: Regularly back up your vital digital files to an external hard drive,
    cloud storage, or other secure location. Maybe even consider a “live” backup vendor that
    immediately backs up whatever you type to a secure cloud-based storage site.

Additional Tips

  • Use Strong Passwords: Avoid easy-to-guess passwords and combine uppercase and lowercase letters, numbers, and symbols. The FTC has more tips for using secure passwords.
  • Enable Two-Factor Authentication: Add an extra layer of security to your accounts using two-factor authentication.
  • Be Cautious of Phishing Attempts: Be wary of unsolicited emails or calls requesting
  • personal information.
  • Review Privacy Settings: Regularly check the privacy settings on your social media accounts and other online services.

By taking these steps, you may be able to effectively organize and protect your digital estate, to help make your financial future more secure and accessible.

Securities offered through IFP Securities, LLC, member FINRA/SIPC. Investment advice
offered through IFP Advisors, LLC, a registered investment adviser. IFP and Generations
Planning Group, LLC are not affiliated.