Our lives are more intertwined with the digital world than ever. The number of accounts that the average individual has is expected to reach 300 in the next couple of years. Can you confidently say that your clients know all their 300 passwords and how their client wants those accounts after death are to be handled?
The growing mass of digital assets that your client has often gets forgotten in cyberspace after death. Finding ways to access these accounts is only half the problem with proper distribution of the accounts on the other end.
Research conducted by NetChoice, a few years ago, show that clients want to control their privacy in the afterlife. Without the proper resources in place, you may distribute items to survivors that weren’t supposed to be seen. Not only does this create a potential liability risk to your practice, but improper distribution can create more turmoil throughout the grieving process.
Understanding how to properly pass down digital assets according to your client’s wishes should be a priority as digital propery accumulation continues to grow.
The Challenges of Accessing Accounts After Death
Due to privacy and security laws, survivors may not be able to access important information, such as a Dropbox holding investment information, old photos or documentation of airline flight credits. When a loved one passes away, heirs will turn to the plan created by you and your firm to guide them through these difficult times.
There’s often a disconnect between what heirs and loved ones expect and following the wishes of your client. Mending this disconnect relies on having a digital asset succession plan in place for each account. Furthermore, avoiding unnecessary delays in account access is critical to avoid months of endless phone calls to businesses to gain access.
Handling Restricted Accounts
Throughout the lifetime of your client, they may accumulate accounts that they don’t want distributed to close family and friends. Whether these accounts contain private information or simply aren’t relevant to pass down, as an advisor, you need to understand the way your client wants to handle these accounts.
Asking every client about each of their 300 accounts is not only time intensive, but it also runs the risk of missing key accounts that your clients may have forgotten about. Who really remembers an account they signed into 4 or 5 years ago?
The Solution
Finding a solution that promotes communication between you and your client is vital to ensure you are properly distributing digital assets upon death. One solution that places a majority of the burden on your client is using innovative software solutions like Directive Communication Systems.
This system allows your client to automatically add accounts to their portfolio in the DCS software database as they sign into accounts online. Then, from the portal, your client can choose which account’s contents will be passed on to survivors and which ones will stay restricted.
With DCS, the client has control of who can have visibility to their portfolio. With the client’s consent and as an advisor, you’ll be able to see the accounts and plan for them appropriately. This included those with financial value that need to be further questioning to determine the best risk and tax strategies. Additionally, the DCS process reduces any confusion when dealing the the settlement process. For added protection, accounts marked restricted by your client will not be visible to you, eliminating the need to even consider the accounts.
Summary
Properly handling your client’s digital asset wishes shouldn’t interrupt your normal business operations. There are innovations that can work in the background, ensuring your client’s succession plan wishes are being properly followed.
The team at Directive Communication Systems makes it easy to pass down account information within the realms of your client’s wishes. For more information on what working with this resource means for your practice, reach out to a team member today.