The Importance of Outlining Your Digital Life for Beneficiaries

By Britt Erica Tunick

As the world has become increasingly digital, so too have most of our files and documents –from utility bills and credit card statements, to insurance policies, investment records, and even correspondence and photos. While going digital is a good thing and can help cut down on the amount of paper used by both individuals and companies—and ultimately the amount of paper waste that winds up in landfills— it is important to make sure there is some sort of trail that loved ones and beneficiaries could follow if anything were to unexpectedly happen to you.

Absent the storage limitations of computers, and coupled with the convenience of being able to remotely access documents or files from virtually anywhere, cloud storage has become an attractive option. As a result, many people have thrown out the hard-copy records once stored at home in file cabinets for their digital counterparts, storing records, documents, and even family keepsakes on mobile phones, computers, and tablets or in the cloud. But, while electronic storage may be convenient, failing to document all the accounts you have so that your family and dependents can find them (along with the passwords for each) could leave your beneficiaries unable to find or access them once you are gone.

To avoid this possibility, consider creating some sort of hard-copy document—essentially the equivalent of a roadmap— outlining where all of your important documents and holdings are located and what passwords are necessary to access them. While such information can be easily stored on a spreadsheet, keep in mind that if something happens to the computer that spreadsheet is on, it is basically useless. And, given the sensitivity of all the information needed, a good place to keep this information is in a safe deposit box or safe. If you are someone who is truly married to the idea of living entirely paper-free, there are online services designed to securely store your sensitive information, such as Everplans and LifeSite, among others. Just make sure that all of your important information is somehow centralized and be sure to document where it is stored in a safe place.