What happens to your online accounts when you die? Here’s how to prepare

When a person passes away, their online accounts—such as credit cards, merchants, subscriptions, social media, and streaming services—often face uncertainty. Heirs might not know how to access these accounts or what the deceased would have wanted done with them, potentially causing significant issues for the next of kin. To mitigate these challenges, it's essential to plan for the disposition of online accounts after death.

A survey of 21 American adults over 60 revealed several key findings regarding their concerns, needs, and practices concerning their digital estates. Many of the interviewees had consulted lawyers or estate planners to draft wills specifying the management of their tangible assets and finances posthumously. However, they also desired their relatives to easily access their digital assets, but many had not taken formal measures to plan for this transition or shut down online accounts. Some respondents admitted they hadn't given much thought to their online accounts at all.

While some of the older adults kept track of their passwords manually, either by writing them down or storing them digitally, few had shared them with their family members. Most believed their heirs would be able to locate their password lists after death. However, these individuals were dissatisfied with their current password management systems, as frequent password changes often made it difficult to keep their lists up-to-date.

As a result, they were uncertain if their heirs would receive the most current versions of all their passwords. Password managers can serve as a practical solution, ensuring that passwords are current and accessible to designated heirs when set up correctly. Despite most interviewees using password managers, some hesitated to store important passwords in them due to concerns about their security.

Nevertheless, experts widely recommend password managers as the most common security measure for storing all account passwords. By using a password manager, you can ensure that your chosen heir has access to the latest passwords for all your accounts. Some password managers even offer time-delayed emergency access features to facilitate this process.

Nevertheless, passwords alone are insufficient to unlock all accounts. Certain platforms require two-factor authentication, such as codes sent to a phone or email, rendering a password alone inadequate for account access. If the email account is closed or the associated phone number is no longer active after death, accessing these accounts becomes challenging.

To prevent such situations, it's crucial to identify devices and accounts that can act as keys to unlock other online accounts and inform your heirs to keep these accessible until all other accounts have been settled. This ensures that heirs can obtain authentication codes and reset other passwords if necessary. For some online services, like Facebook and Google, there are features allowing you to designate someone to manage your account or retrieve your data posthumously.

However, not all platforms provide this option, and few older adults were aware of these functionalities. It's also important to note that online accounts don't automatically cease upon the user's death. Just as many interviewees assumed heirs would handle important accounts while disregarding less significant ones, the reality may differ.

Even seemingly inconsequential accounts can be exploited by hackers for identity theft, spam, or fraudulent activities. Moreover, unresolved automatic monthly charges for services such as streaming subscriptions or magazine annual memberships could continue indefinitely without proper closure instructions. Without explicit guidance from the deceased, those managing their digital accounts might overlook the necessity to close these accounts or struggle to discern the account owner's intentions.

To address these concerns, it's advisable to go through your accounts, noting which can be closed immediately, those requiring final payments before closure, and those that may necessitate additional actions. Additionally, regularly reviewing and tidying up your accounts can help maintain a manageable list while ensuring your wishes are clearly communicated to your heirs.

By planning ahead for your online accounts, you can alleviate stress on your heirs and ensure that your digital assets are managed according to your wishes.