What to Do Online ... When You're Dead

By Russell Francis

NEW YORK ( AdviceIQ) -- Your will ensures that your physical assets make their way to your loved ones. It is just as crucial to make sure your virtual assets are protected after death. Plan ahead now so your survivors can easily close your online life according to your wishes.

After you die, someone should delete your credit card information and email accounts and notify your friends and contacts. You may want your online photo albums or online genealogy preserved for family members. What happens to electronic assets that have a real financial value, such as accounts with PayPal, email, eBay ( EBAY) and iTunes?

After death, paperless bills and automatic payments from your bank account need to be stopped. It's fairly easy to get a bank to close an online account, but with no account to draw from, unpaid bills could pile up if the family doesn't have access to the deceased's email account to cancel the payments.

Unfortunately, the law isn't up to speed with technological advances. For instance, you can generally get access to a deceased family member's online bank and brokerage accounts if you have the proper documentation, but many online service providers make it difficult or impossible to access other accounts.

Email messages, instant messages and personal files you upload from your computer and store online are all considered private unless you put them in the public domain. The Stored Communications Act protects your stored electronic communications from access by third parties. Courts interpret this to include emails and attachments, photos and videos. Most service providers keep communications and stored data private unless the user chooses to share them.

Different companies, different rules

Some services have guidelines to help family members unravel the electronic accounts in the absence of a password. AOL ( AOL), Twitter and LinkedIn ( LNKD) require a copy of an individual's death certificate and proof of authorization to administer the estate before deleting or turning over an account to a survivor.

Google ( GOOG) requires a death certificate for access to a Gmail account, but it also requires a copy of an email from the Gmail account in question to the survivor on any topic during the decedent's lifetime.

Your Yahoo ( YHOO) account is non-transferable and any rights to your Yahoo ID or contents within your account terminate when you die. Upon receipt of a copy of a death certificate, the account and its contents may be permanently deleted. In a 2005 court case, Yahoo was ordered to turn over a deceased U.S. Marine's email messages to his family.

eBay requires similar documentation for a survivor to access a decedent's eBay seller's account. eBay does not grant access to a buyer's account, however.

Facebook ( FB) preserves the deceased person's profile as a memorial after the user dies. The company doesn't give login and password information to anyone, but Facebook responds to requests from the immediate family to remove the profile.

Prepare now

So what can you do now to make sure these assets are handled the way you intend?

Doing nothing is a viable option, but not an ideal one. Most email providers eventually delete all of your old emails, and domains expire after a while if not renewed. Domain names sometimes automatically renew on a designated credit card. Credit cards expire, but that could take years. If any of your electronic assets have an economic or emotional value, you should take action while you are alive.

You could include instructions in your will or trust for taking care of your online life. The probate court must honor the wishes of the deceased, but the legal right to close and transfer accounts is logistically difficult. Also, online accounts and passwords change frequently, making it difficult and time consuming to identify the electronic assets of the deceased.

Keep a flash drive and letter of instruction with information and login details for all of your accounts. Tell a family member or responsible friend the location of this device and instructions. Keep it in a secure place and be sure to update the information as needed.

Use a password program such as 1Password or LastPass to store your logins and passwords. These programs encrypt and store your information online and anyone with a master password that you create can access them.

In addition to your traditional will, set up a digital will. Services such as LegacyLocker and DeathSwitch allow you to maintain your electronic assets, including account numbers and passwords. After your death, they release your information to the designated person. For security purposes, these services independently verify your death. Both services have limited free trials to test them out.

If you are concerned about turning over all of your login information to someone you don't know, you can entrust your user names to one of these services and passwords to family members, so that each side's information is useless without the other.

-- By Russell Francis, owner of Portland Fixed Income Specialists in Beaverton, Ore. His website is here.

AdviceIQ is a network of financial advisors that writes insightful articles for the public about investing and wealth management. All articles are edited by AdviceIQ's editor in chief, Larry Light. AdviceIQ certifies that all its advisors have no regulatory infractions.

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AdviceIQ is a network of financial advisors that writes insightful articles for the public about investing and wealth management. All articles are edited by AdviceIQ's editor in chief, Larry Light. AdviceIQ certifies that all its advisors have no regulatory infractions.