ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Practice Management
  2. Assisting Your Clients With Protecting Their Digital Assets
Practice Management
Share

Assisting Your Clients With Protecting Their Digital Assets

Kristan WojnarOct 10, 2017
2017-10-10

What happens to your clients’ digital assets when they pass away?

You might even be wondering what exactly these so-called digital assets are anyway.

Simply put, a digital asset is digitally stored content or an online account that is owned by an individual.

Think about it: this includes electronic possessions across computers, tablets and smartphones and virtual property like personal photos, videos and movies, songs, e-books, e-mails, and texts, just to name a few. It also includes online account information for a litany of websites your clients use daily, including online retailers, credit cards, health records, bank accounts, PayPal, loyalty programs and social media. The list goes on.

The Value of Digital Assets

So how much are one’s digital assets worth? According to McAfee, consumers in the U.S. value their digital assets at almost $55,000 and globally consumers value them at about $37,000.

Are your clients protecting these assets? And furthermore, are these assets included in their estate? These digital assets contain personal records, sensitive information and communication, as well as career information. They also can have a significant financial value, as well as sentimental value so it is important that you as their advisor are well informed to assist them.


Content continues below advertisement

Create a List

First and foremost, your clients should create a list of all of their digital assets so their family has access to it in the event of their passing. This master list is important to access right away to take care of financial concerns such as bills that are autopay, for example.

The master list should first include a list of all of their devices, as well as the passwords to unlock the devices. Even if the heirs decide to gift or donate the family member’s devices, they won’t even know what is contained on the devices if they cannot unlock them.

The master list must also include a list of accounts with usernames and passwords. This list should be extensive and include everything that requires a password, including backup drives and cloud accounts. The list should also contain the answers to the secret questions that many accounts require.

This master list will ultimately act as a map for your clients’ loved ones to follow. It is important to note, however, that experts advise not to include passwords in wills or documents that will become public documents.

Consider Securing the List

At the very least, clients should create the list in a text file or simply on a piece of paper. If security of this master list is also a concern, they can create a password-protected spreadsheet or document.

Some clients may want to go as far as to use a password management system such as LastPass. A system like this encrypts your password information and keeps it stored on your computer. One password unlocks all of the client’s data.

This may be the best way to go because research from Intel Security shows the average person has 27 discreet online logins. And this is just average. It’s probably safe to assume that many people have far more.

Create a Written Plan

Believe it or not, experts say it is important that your clients should create a written plan stating who controls their digital assets after their passing.

Unfortunately, the laws are lagging in this area. There are very few states with legislation governing what happens to digital assets after death and there is a web of unclear and inconsistent online user agreements.

Including digits assets in the estate planning process is essential and your clients’ wishes should be as specific as possible to minimize the risk of their heirs losing these assets. Your clients also should select a digital trustee to access their digital assets.

The trustee should be instructed on things such as how they should access, delete or modify digital assets and login credentials. Privacy and personal information should be addressed too. For example, does your client want their family members reading their personal emails upon their passing or will the trustee be instructed to dispose of them?

In addition, not only is a written plan and digital trustee important to prevent losing irreplaceable items like family photos and videos, but it may deter leaving your clients’ estate susceptible to cyber crime, as well as post-mortem identity theft.

Digital Estate Planning Services

Some of your clients with more complex digital asset estates may be interested in online digital estate planning services. These online services all operate differently, but in essence they continuously and securely manage the storage of digital assets. Some of these services include Everplans, AssetLock, Legacy Locker and SecureSafe.

The Bottom Line

Many clients (and their loved ones) are becoming more concerned about what happens to their digital legacy once they are gone.

Since these assets have not only a monetary worth, but also a sentimental value, it’s important to help clients protect these digital assets. Encourage them to take action and plan properly, so their loved ones have the authority to access these assets when they are no longer here and their digital legacy is not lost forever.

» Popular Pages

  • Tickers
  • Articles

Feb 08

New Dawn for Hotel Industry Could Underpin JRNY Gains

Feb 08

Invesco CEO to Retire, Replacement Named

Feb 08

Opportunities in Short-Term Treasuries With XONE

Feb 08

A Closer Look at NightShares' NSPL

Feb 08

Exchange and Junior Achievements Build Community

Feb 08

China's Aggressive Clean Energy Stance Sets Up This ETF

Feb 08

Earnings, the Economy, and the Market’s Reality

Feb 08

California’s Aggressive Climate Measures Puts this ETF in Play

Feb 08

As Financial Companies Embrace Blockchain, Look at BLKC

Feb 08

Get Exposure With This ETF as Industries Rely on AI

QQQ

Invesco QQQ Trust

SPY

SPDR S&P 500 ETF Trust

VOO

Vanguard S&P 500 ETF

VGT

Vanguard Information...

SMH

VanEck Semiconductor ETF

XLK

Technology Select Sector SPDR...

VTI

Vanguard Total Stock Market...

SOXX

iShares Semiconductor ETF

BLOK

Amplify Transformational Data...

META

Roundhill Ball Metaverse ETF

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X