Estate planning is evolving with digitalization, and financial advisors must actualize an effective wealth management strategy to cope up.
FREMONT, CA: The estate planning sector still relies on paper documents and file cabinets. Some of the most tech-savvy advisers may use a digital vault-like to share documents with clients, but that's about it. But things are slowly changing, and estate planning is experiencing a new wave of transformations with an increase in digital assets and data. At present, an estate plan is incomplete if it doesn't include the various aspects of digital life, such as transactions, files, accounts, and others. The above statement can be justified from the fact that there are three million digital currencies that are currently irretrievable. Deciding on how to manage digital assets is a pressing issue in estate planning as it will ensure asset management even beyond the owner's lifespan. Here are three things that can assist in estate planning.
• Password Management Sites
Apart from day-to-day internet security, password management sites can play a crucial role while formulating an estate planning strategy. Further, these sites will serve as a central hub for several digital aspects of life. Such a centralized facility will require the owner to login via one password, thereby enabling access to all the digital information pertaining to the user.
• Authorized Access to Digital Passwords
The executor needs to have the master password to the password management platform, which should be accessible after the owner passes away. As it is sensitive data, it would be advisable to consider placing the master password credentials on a safety deposit vault, which can be accessed only by the authorized person such as a financial executer.
• Identifying Digital Executor
Identifying the digital executor on a will is an essential step in estate planning. Logging in to someone's online account can have legal issues. However, the owner of the will can designate a financial executor to do so. Such a proposition will ensure the execution of the owner's will after he passes away.
Sophisticated strategies and ever-evolving technology may make estate planning feel intimidating, but the above consideration can come to help.
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