A New York Times story, “Leaving Behind the Digital Keys to Financial Lives,” raises some important issues regarding a major change in the way most of us access our various financial accounts.
It used to be that when an aging parent passed away, there would be a paper trail for survivors to follow to bank, retirement and insurance accounts. Now, with the shift toward online transactions, it’s possible for account access – or even knowledge of an account or accounts – to follow a person into the grave.
Indeed, nearly half of high-net-worth people surveyed recently said that they had not organized passwords and account information and put them where heirs or the executors of their wills could find them.
We keep records of your account credentials, so you’re covered. However, that may still leave other generations unprotected. Your parents or other aging relatives, for example, should be encouraged to share information about their online financial accounts in the event that you will need to access them if the relative dies or becomes incapacitated and you need to begin handling their financial affairs.
While the Times story focused on a disadvantage of having fewer records kept on paper, it ignored an obvious benefit of online account access. If you’re involved in the care of an elderly parent – or expect to be in the future – you no longer have to sit at their kitchen table, bills and checkbook in hand. Instead, thanks to online access you can manage a loved one’s finances from thousands of miles away.
If you need help setting up online access to a relative’s financial accounts or would like assistance developing a digital estate plan that involves other generations of your family, please contact us. We’ll be happy to help.
