Estate planning is a crucial aspect of aging for all families. However, estate planning has increasingly gone more digital. Digital estate planning ensures that all family members have access to important estate information online so that they can make informed decisions quickly and without delay or frustration.
It’s important to set time aside with aging family members to properly set up a digital estate plan so that family members are more prepared during medical emergencies or end-of-life transitions.
This blog helps families understand the evolving world of digital estate planning, including online wills, powers of attorney (PoA), password managers, and digital asset organization.
What Is Digital Estate Planning?
Digital estate planning covers the shift from paper documentation to digital. This includes online wills, digital power of attorney documents, and secure online storage.
Families are increasingly turning to online tools for estate planning over traditional legal services for a number of reasons. Many businesses operate entirely online, so the prevalence of online tools that support estate planning are increasingly.
Additionally, more estate planners and estate planning software are online so it would make sense that younger generations are turning to digital tools to make arrangements for themselves. Individuals are able to set up an entire estate plan entirely online without the help of traditional legal services, which is extremely convenient, efficient, and affordable.
Even if you’re not as familiar with online tools, it's a smart idea to back up estate information online. This includes either scanning physical or written documents, writing details and documents in a Word document and uploading them to a secure file storage or drive, and creating digital duplicates in case the information is damaged in a natural disaster or flood.
Key Components of a Digital Estate Plan
Digital estate plans can be custom built by sourcing your own templates, resources, and tools, or it can be created using an online software.
There are several core components necessary to an effective digital estate plan.
Online Wills & Powers of Attorney (POA)
Wills, trusts, and powers of attorney (POA) are legal documents that provide necessary information in the instance that someone is unable to act on their own or they have passed away.
These documents provide crucial information on how their assets, property, and care information (such as medical or financial decision making) should be managed if they cannot make these choices themselves.
Legal platforms and services can help aging family members create an online will, trust, or power of attorney document. It’s important to note that you can legally create a will or POA completely online, as long as it is properly executed and signed in front of a witness with a notary.
If you decide to go the online route, be sure that the services that you are using are trustworthy and that you account for the proper execution or signing of the documents to ensure their validity.
Medical Directives
Medical directives in estate planning include written instructions for the proper care if the individual cannot make those decisions for themselves. These documents are typically stored safely and shared when the time comes, so that the power of attorney can make the proper medical decisions.
Medical directives typically include advanced directives and personal directives.
Advanced directives might outline wishes for specific medical treatment, including life-sustaining treatment should they become incapacitated and living wills documentation. Personal directives are more broad, and would typically encapsulate whether or not there is a living will or POA to enact the wishes.
You can write medical directives yourself but it is wise to obtain legal advice if you are unsure, especially if the directives need to align with your healthcare power of attorney.
Password Management
So much of our activities are done online. From bank accounts, to utility bills, and insurance documentation, it is all available online, even if we do not typically access these accounts that way.
Family members will need to know how to access this important information if an aging family member were to become incapacitated or pass away.
Safely and securely storing the login information for these sites should be a key part of any family's preparedness plan.
Password management software is one of the most effective ways to manage online accounts and passwords in an estate plan. These software platforms have secure, multi-user access systems so that loved ones don’t have to share sensitive information over text or phone call.
This also means that senior family members may be less likely to fall victim to a robo or deepfake scam by providing their personal banking information to someone over the phone.
Set aside time with senior loved ones to open a secure password account, upload all of the passwords, and write out how the information is to be used.
Account Access & Digital Assets
When your family is experiencing a crisis, like someone requiring life-saving care, there is no time to ask where important information is stored or how to access that information.
You need to know how to access things like email accounts, bill accounts, bank accounts, the location of any prescriptions, and details of the living will or power of attorney.
While some of that information can be safely secured in their home, having this information organized and ready online will make family planning and care easier, especially with remote family members or multiple siblings working together.
Be sure that you can gain access to email, cloud storage where updated documents are stored, access to any social media accounts, subscriptions, or medical accounts.
Emergency Contacts & Trusted Parties
Emergency contacts and trusted parties are another important aspect to a digital estate plan. You want to know who can have access to what information, and you also want to stipulate when they can have access to it (i.e., what qualifies as an emergency).
Set up clear procedures for who the emergency contacts are, where the secure information is stored, who has access and what to do in a crisis.
How to Get Started with Digital Planning
Estate planning can be challenging, so it may be even more overwhelming to start digital estate planning. Luckily, there are a few things that you can do to make this run smoothly.
To get started with digital estate planning, we recommend starting with a list. Write down all of the necessary things that you think your family needs and discuss them together. You would want to include:
- A shared family cloud storage drive, such as OneDrive, Box, or Google Drive
- A secure password storage software, such as 1Password or Lastpass
- A list of the known logins that are important during an emergency
- A list of the documents that each family should create, such as wills and power of attorneys
- Other useful software or tools such as Google Inactive Account Manager
While it may be difficult or seem awkward, it is much better to set the time aside to discuss these wishes early and make sure they are documented, easy to understand, and your family members know where to find the information.
Common Mistakes and How to Avoid Them
While you start your online estate planning journey, it is normal to make certain mistakes. However, you want to try to catch these early so that they don’t become a problem when you need them the most.
Once the online plan has been created, be sure to keep that information secure. You do not want to share with your friends or third parties who can’t be trusted where your plan is located or what the password is for accessing it.
Lastly, it’s great to be proactive and complete a digital estate plan early, however, you want to be sure you go in and update it as life circumstances change.
Tips for Family Communication and Collaboration
A digital estate plan for your elderly parents will set your family up for success. While this may be a difficult conversation, it is best to get this information out in the open.
Your aging loved ones will ultimately feel better knowing that they have help when it comes to their wishes and well being as they age.
If you are unsure how to talk to your aging loved ones about digital planning, there are numerous resources online that you can use to aid you in this discussion.
Be sure to start slow. Understand that they may not have discussed this information before. You want to show them that you can be trusted to respect their wishes, so while you may have some great recommendations, remember that their wishes are the ones that need to be honored.
Come to the conversation prepared and present options so they can decide what they are most comfortable with. If they are nervous, then keep it casual. Nothing needs to be decided that day.
After the conversation has taken place and plans are taking shape, do not forget to designate a person to take over management of the digital assets should your parent or loved one become incapacitated and unable to manage their affairs themselves.
Peace of Mind Starts with a Digital Plan
No one likes to talk about end of life or worst case scenarios. However, doing so can make things easier for family and caregivers while ensuring an individual is cared for in line with their wishes.
It is important to have these conversations and establish estate plans early. Having a plan in place can allow everyone to enjoy their time together without any concern for what may happen in the future.
Family collaboration in estate planning can ensure everyone is on the same page. Not only will the loved ones' wishes be recorded in the document, other members of the family can hear it for themselves. It also helps them understand where to turn should the need arise. If everyone knows the POA, for example, then everyone knows where to start in a crisis situation.
Aging family members and their loved ones deserve the peace of mind that can come with having an estate plan in place. Digital estate planning tools can make it easier and more convenient to complete the job.
At Care Indeed, we are committed to providing holistic support to seniors in the Bay Area. This support extends beyond physical care. We can help families open lines of communication and provide educational resources or legal support recommendations if needed.
Contact us to learn more about how we can support you or your loved one.
