Why You Should Plan Your Digital Legacy in Advance

In today’s digital age, our lives are increasingly lived online. From emails, social media, and cloud storage to banking and investments, so much of what we do involves digital assets. But while we plan for the distribution of our physical possessions through a will, many of us overlook what happens to our digital footprint after we’re gone. Planning your digital legacy in advance helps ensure your online presence and assets are managed according to your wishes.

While this might not seem like a priority, failing to address your digital legacy could leave your loved ones with unnecessary complications. In fact, dealing with someone’s digital accounts and assets can be more complicated than handling physical belongings. Imagine trying to access a deceased loved one's social media accounts or important documents stored in the cloud — without prior instructions, it can be extremely difficult. This is why digital legacy planning is vital.

Let’s explore what a digital legacy is, why it’s important to plan ahead, and how to effectively organize your digital assets for the future.

What is a Digital Legacy?

A digital legacy refers to the digital information and assets you leave behind after you pass away. These assets can range from personal accounts, like email or social media profiles, to financial accounts, such as online banking or cryptocurrency wallets. Here are some examples of what might be included in your digital legacy:

This is just a snapshot of the various digital assets many people have today. Over time, this list will likely grow as more of our lives shift to digital spaces.

Why Planning Your Digital Legacy is Critical

Planning your digital legacy may seem overwhelming, but it’s essential for several reasons. Consider the following:

1. Protecting Your Loved Ones from Stress

If you don’t leave clear instructions about how to handle your digital assets, your family could face immense stress. Imagine them trying to figure out how to access your online banking or social media accounts without knowing usernames, passwords, or even which accounts exist. This can lead to long legal processes, emotional hardship, and potentially lost assets.

2. Avoiding Legal and Financial Hurdles

Canada’s legal system doesn’t yet have strong, specific laws regarding digital inheritance. This means that unless you’ve planned ahead, your loved ones may have no legal authority to access your accounts, even if they know about them. Without proper access, money in online accounts could be lost, and important documents or memories could disappear.

3. Securing Your Identity Posthumously

Identity theft is a growing concern, and yes, even deceased individuals are at risk. If your accounts are left unattended, they can become targets for hackers. Cybercriminals often seek out inactive accounts to steal identities and wreak havoc. Planning ahead can help you lock down your digital presence and protect your legacy from identity thieves.

4. Ensuring Your Personal Wishes are Honored

Would you prefer your social media accounts to be memorialized or deleted? Should certain private emails or documents be erased? These are personal decisions, and without a plan, they may not be carried out as you would like. Planning allows you to dictate how your digital footprint will be handled after your passing.

5. Preventing Lost Assets

Many people have valuable digital assets—such as cryptocurrency, online businesses, or digital content libraries (movies, books, music)—that could be lost forever without proper planning. If no one knows about these assets or how to access them, they may never be recovered. Planning ensures these valuable assets are properly managed and passed on to your beneficiaries.

Digital Legacy and Canadian Law

Canada currently does not have comprehensive laws that cover the inheritance of digital assets. While laws regarding physical assets are well-established, there’s a gap when it comes to handling digital legacies. Privacy and data protection laws make it difficult for loved ones to gain access to your digital accounts without explicit permission. This is why proactive planning is so crucial.

It’s worth noting that many online platforms (such as Facebook or Google) have their own policies on what happens to a deceased user’s account. These policies often differ from one company to another, so it’s important to review the terms of service for any major accounts you have.

In some cases, a power of attorney or court order might be needed for your family to access your digital information. However, by creating a clear digital legacy plan and designating a digital executor (more on that below), you can prevent your loved ones from having to deal with legal battles.

How to Start Planning Your Digital Legacy

Creating a plan for your digital legacy may seem complex, but breaking it down into steps makes the process more manageable. Here’s a comprehensive guide to help you get started.

Step 1: Create an Inventory of Your Digital Assets

First, make a complete list of all your online accounts and digital assets. This should include everything from social media profiles and email accounts to online banking, cloud storage, and even subscription services. You’ll also want to list any hardware, such as external hard drives or devices, that contain important digital files.

Step 2: Appoint a Digital Executor

A digital executor is someone you trust to manage your digital assets after your death. This person should be tech-savvy enough to handle the various platforms you use. They will be responsible for carrying out your wishes, such as closing accounts, recovering funds, or passing on digital files to your loved ones.

Make sure this person is aware of their role and understands the steps they’ll need to take. If necessary, you may want to leave them with a detailed guide on how to handle your digital assets, including how to log in to specific platforms and what actions to take.

Step 3: Use Password Managers and Provide Access

Most people have dozens of online accounts, and remembering all the passwords is difficult, even while we’re alive. After death, your loved ones may struggle to access critical accounts without proper credentials. Using a password manager (such as LastPass or 1Password) helps securely store all your passwords in one place.

You can then share access to this password manager with your digital executor. Many password managers allow you to designate a trusted person who will gain access to your accounts in the event of your passing.

Step 4: Set Up Legacy Options on Major Platforms

Several major platforms allow you to specify what happens to your account after you pass away. This is known as a legacy option. For instance:

• Facebook allows you to designate a legacy contact to manage your memorialized account or have it deleted.
• Google offers an Inactive Account Manager feature, which lets you decide who will have access to your account after a period of inactivity.
• Apple now provides a Legacy Contact feature for managing your iCloud account.

Check each major platform you use and take advantage of these features.

Step 5: Include Digital Assets in Your Will

Just like you include your physical assets in your will, it’s important to mention your digital assets too. This could be as simple as specifying who should receive your digital photos or music library, or as complex as deciding who will inherit your cryptocurrency.

It’s important to remember that some digital assets cannot be transferred upon death (such as accounts with non-transferable licenses). Be sure to check the terms of service for any significant accounts or assets you hold.

Managing Specific Types of Digital Assets

Each type of digital asset requires different steps to ensure they are managed properly. Let’s break down how you can manage some of the most common types of digital assets:

1. Social Media Accounts

2. Email Accounts

Decide whether your email accounts should be passed on to someone or closed. Email accounts often serve as a key to accessing other platforms, so ensuring someone can log in may be crucial. Google, for example, lets you assign someone to access your Gmail via the Inactive Account Manager.

3. Online Banking & Investments

Make sure your financial accounts are part of your estate plan. Many banks and financial platforms require proper authorization before granting access to online accounts. Cryptocurrency wallets, in particular, require careful planning since they often have unique security measures like private keys. Without these keys, your funds could be lost forever.

4. Digital Photos & Documents

If you store personal files in the cloud, ensure your digital executor knows where these are and how to access them. Services like Google Drive, Dropbox, and iCloud are popular for storing family photos and important documents. Set up shared access or leave clear instructions on what to do with these files.

What Happens if You Don’t Plan Your Digital Legacy?

Failing to plan your digital legacy can lead to various challenges for your family and loved ones. Here are some of the consequences of not having a clear digital legacy plan:

By planning ahead, you can prevent these issues and give your loved ones a clear path for managing your digital legacy.

Tools to Help You Plan Your Digital Legacy

Fortunately, several tools and services can help make digital legacy planning easier. Here are some helpful options:

Conclusion

Planning your digital legacy is an essential part of managing your overall estate. It ensures that your online presence, digital assets, and personal wishes are respected after you’re gone. Taking the time to organize your digital life now can save your family from stress, legal hurdles, and potential financial loss in the future.

Start today by making an inventory of your digital assets, appointing a trusted digital executor, and setting up legacy features on major platforms. By doing so, you’ll leave behind a well-organized digital legacy that aligns with your wishes.

For more guidance on protecting your digital assets and managing your online presence, visit our blog on 2ip.ca, where we provide helpful tips and resources for Canadians looking to safeguard their digital futures.