Online Assets and Estate Planning

With the increasing use of online services such as banking, paypal, and the acquistion and accumulation of internet businesses, it’s easy to forget that these are tangible asset and may often be overlooked for one reason or another. Perhaps the oversight could be as simple as privacy, didn’t think it was a big deal, your estate planning/will/trust questionnaire didn’t include them in the planning process or whatever…

Well, these online assets could represent a positive dollar contribution to your estate. This is especially in the case of online businesses that begin to generate passive income and the money perhaps directed deposited into an online/internet only bank such as ING. What about that .com domain name that is now worth thousands or even millions of dollars because of the brand recognition it has received. Or, even, what about that ebay/paypal account that has a chunk of money in it from the sales of your household “treasures”?

Many times spouses are not aware of the online accounts and passwords even for the bank that is right down the street. Certainly, having these types of assets should be included when planning for the eventual transfer of property to your beneficiaries. Of course this would be for the accounts that are worthy.

Mallory Simon of CNN.com discusses this subject in the Technology section. Here is the link to the original article.

New services promise online life after death

Story Highlights:
New services are helping people organize their digital assets after their death.  Customers can designate loved ones to access their posthumous online accounts.  Legacy Locker allows users to set up a kind of online will, with beneficiaries. Eternal Space lets loved ones create customized online grave sites.
By Mallory Simon, CNN

(CNN) — Your husband, an avid gamer and techie, dies of a heart attack, leaving his vast online life ­– one you don’t know much about ­– in limbo.

His accounts, to which you don’t know the passwords, go idle. His e-mails go unanswered, his online multiplayer games go on without him and bidders on his eBay items don’t know why they can’t get an answer from the seller.

Web site domains that he has purchased, some of which are now worth hundreds of thousands of dollars,­ will expire, and you may never know.

It’s a scenario that’s becoming more likely as we spend more of our lives online. And it’s raising more questions about what happens to our online lives after we log off for the final time.

The answer, until recently, was nothing.

But now, as online usage increases and social-media sites soar in popularity, more companies are popping up to try and fill that void created in your digital life after death.

Jeremy Toeman, founder of the site Legacy Locker, recognized that when he was on a plane and wondered what would happen to his online life if it crashed. While his will leaves everything to his wife, including all of his digital assets, Toeman realized how difficult it would be for her to access his accounts.

“My GoDaddy account would belong to her, but it doesn’t solve the practical reality of how she would get access to it,” he said. He experienced a similar scenario after his grandmother died, and he tried to get the password for her e-mail account — only to give up because of the hassle.

So Toeman built his company to change all that. Legacy Locker allows users to set up a kind of online will, with beneficiaries that would receive the customer’s account information and passwords after they die.

“We know it’s a hard thing to think about — to get people to face mortality. We know it’s kind of morbid, but for those who live their entire lives online, it’s also very real.”

A Legacy Locker account costs $29.99 a year. Users can set up their accounts at www.legacylocker.com to specify who gets access to their posthumous online information, along with “legacy letters,” or messages, that can be sent to loved ones.

If someone contacts Legacy Locker to report a client’s death, the service will send the customer four e-mails in 48 hours. If there’s no response, Legacy Locker will then contact the people the client listed as verifiers in the event of his or her death. Even then, the service would not release digital assets without examining a copy of the customer’s death certificate, Toeman said.

Eddie Lopez is the kind of tech-savvy guy for which a service such as Legacy Locker was made. The St. Paul, Minnesota, man has three online banking accounts, a PayPal account, domain names, Web-hosting accounts, multiple e-mail addresses and many social-networking accounts.

“I do think this is something people should be really considering these days,” Lopez told CNN when asked about services such as Legacy Locker. He wants to hire a service to handle his digital assets but is concerned about privacy.

“Although I’m glad there’s people breaking ground in this area, I don’t think I would jump at the first opportunity to sign up,” Lopez said. “My concerns are turning over such an exhaustive list of user names and passwords to a single business. That’s one-stop shopping for any hacker to get access to just about every detail of my life.”

Lopez would prefer to entrust half of his digital-security information to a service such as Legacy Locker and the other half to family members, so that each side’s information would be useless without the other’s.

“I hope Legacy Locker and similar services can address these privacy-security concerns with some real-world solutions,” he said. “I just don’t feel comfortable turning over my digital life — built over 15 years — to a kind promise.”

Legacy Locker isn’t the only new company helping techies plan for death in the digital age.

AssetLock (formerly YouDeparted.com) offers a “secure safe deposit box” for digital copies of documents, wishes, letters and e-mails. Deathswitch and Slightly Morbid also offer similar services in a variety of prices and packages, depending on how many accounts are involved.

Not all of these services deal with online assets. There’s also a growing trend towards giving all aspects of death –­ the grieving process, the funeral, the memorial and even the grave site –­ a digital makeover.

FindaGrave.com claims to have cemetery records for 32 million people in its searchable database, while EternalSpace.com offers a new spin on the traditional grave site by offering virtual memorial pages ­full of videos, pictures and tributes.

On Eternal Space, loved ones can choose from different headstones and bucolic landscape backgrounds — the mountain lake is a popular option — to create a customized online grave site. Loved ones can add “tribute gifts” such as roses, candles, stuffed animals and other items, while mourners can access photos and videos in a “Memory Book” and leave remembrances of their own.

Jay Goss, president of Eternal Space president, is trying to bring the funeral experience to anyone who can access the Web. In that way, he hopes to provide a gathering place, and a voice, for mourners who may not be able to attend the real-life memorial service.

“It’d be the equivalent of a funeral where everyone can attend and everyone can spend 30 minutes behind the podium,” Goss said. “It gives everyone a chance to put a 360-degree wrapper on the life the person lived and celebrate that life from how every person knew them.”

Eternal Space’s virtual memorial sites are currently only being offered through select funeral homes, cemeteries and crematoriums. Goss’ hope is that the site will help allow the deceased’s memory to be “eternally” passed on.

“All of these stories and videos are being left, in essence, to this Eternal Space Web site so that everyone can share, not just that day, not the days after, but the weeks after and years after,” he said.

Some funeral-industry professionals believe these online memorials and virtual grave sites provide a valuable service.

“Assuming the site is handled with respect, virtual memorials respond to a basic human need to remember our deceased family, friends and colleagues,” said Robert M. Fells, general counsel for the International Cemetery, Cremation and Funeral Association.

“Based on our members’ feedback, I’d have to say that virtual memorial sites are gaining popularity with the public as a very practical alternative to being present at the grave site,” he added. “There’s nothing ‘weird’ about them as far as we have seen.”

“There are funeral homes out there that will help families create virtual memorials, but … we’ve also seen Facebook and MySpace profiles of deceased persons being turned into memorials,” agreed Jessica Koth, spokesperson for the National Funeral Directors Association. “Consumers have become increasingly comfortable with expressing their grief online.”

“While not a replacement for a funeral, online memorialization can help people work through their grief after the funeral,” she added. “We’ve all become accustomed to communicating and expressing ourselves electronically — via e-mail, Facebook, Twitter. Expressing one’s grief online is an outgrowth of what’s happening in other areas of our lives.”

CNN.com’s Brandon Griggs contributed to this story.

Links referenced within this article

www.legacylocker.com
http://www.legacylocker.com

Estate Planning Blues

Although my retirement planning practice is focused on the asset protection needs of retirees and pre-retirees aged 50+, I wanted to again highlight that estate planning is not just for “old people”.  This is a great personal testimony from Jennifer Brozek.  She owns SavvyInsider.com which caters to a younger and singles demographic.  I really appreciate her motivation. Her article is called Estate Planning Blues and posted below.  Enjoy!

Estate Planning Blues, by Jennifer Brozek

I have found a lawyer I’m willing to do business with on this estate planning stuff that I recently realized I needed to do. She sent me a 15-page document to fill put before our official appointment that I haven’t actually scheduled yet. This is a document that I probably should not fill out while PMSing. However, as I have started this thing, I can’t just stop doing it in the middle. Though, I am going to hold off for a day or two.

My thoughts have gone something like this: ‘Ok, I have a financial adviser. That won’t be a problem. Life insurance agent? Do I have one of those? Um, I don’t think so. Where are all my important documents stored? Um… currently all over the stupid place. I can’t even find half of them right now. I know where my birth certificate is, my car title and some stock…. but no clue on the passport and… Damn. I really do have to go get that waterproof, fireproof safe now. Or a safety deposit box. Which do I want to do? Lose the combination to the safe or lose the key to the box? I think I’ll go with lockbox. Which means I need to… Guardian 1, 2 and 3 for pets? Oh. Oh, dear. Esme. What will happen to Esme? She really should go to someone who does not have small kids or other pets. Ok. That lets out 95% of the people I know. This is going to be hard.’

*Short couple of IM conversations later*

‘Damn! Ok. Those two said no. Now what? Who is going to take care of my little wench of a princess cat? I can’t think of anyone else. Oh, I don’t want her to go back into foster care. I don’t. They may put her down as a danger because of the biting when over stimulated.’

Of course, the princess cat picks this time to come over and head butt my shoulder for attention. I pick her up for a cuddle and am suddenly crying. I don’t know why but I’m suddenly feeling very rejected because no one wants to take care of my kitty if something happens to me. I know why they said no. All of it is very understandable. It didn’t make me feel any less rejected.

I ended up putting out a call on LJ asking for someone who will care for my kitty if I die. I got one surprise result and one not surprise result. It’s made me relax a bit. I know my kitty will be taken care of. Plus, I’m going to add a trust for her so the person who will take her on won’t have to pay for everything himself.

Still, this estate planning stuff is nerve wracking. I want everything to go well. I have talked to my sister about becoming executor and I still have to find a back up for her. Then, there are the personal letters to write to stay with the will. Hard decisions on the Living Will. Again, it looks like my sister will have power of attorney there. My mom specifically told me not to put her or dad first because, most likely, they will not outlive me.

(Now, there’s a happy thought. I don’t always get along with my parents. That much it true. But think have changed. In fact, I haven’t fought with them for a long, long time. Ever since we came to an agreement on allowing me to find my own religious path, we haven’t fought at all. So, the thought… the knowledge… that there is a very good chance that my parents will die not only before me but within the next 10 years fills me with a profound sadness that I have a hard time verbalizing. Time to digress.)

As hard as this is for me, I seem to also be stirring up uncomfortable feelings in some of my friends. We would all like to think that we are 10 feet tall and bulletproof; young and immortal. It’s hard to officially and legally acknowledge that we aren’t. I really have it easy. My biggest problem is wondering what will happen to my cat and can I get all the important documents I have in the right place. I cannot imagine what this would be like if I had children. My God! Finding Godparents for children? That has to be one of the worst decisions a parent has to make.

On the other hand, I know this is very important. I know that that are certain things I want to go to certain people, no doubt. There are a significant amount of assets that need to be wrapped up that I do not want to be gobbled up by the State because I was too lazy, distracted or ignorant to fill out this paperwork. A condo, a car, investments, stock certificates and a healthy savings account to start. Then, all of my toys – computer stuff, entertainment stuff, all my books, DVDs, etc… When I think about it, the list is huge and it makes me want to start giving away things left and right.

If I had a live-in SO whom I considered a spouse, no matter what gender, I would need to make sure they were in both the Last Will and the Living Will. Otherwise, if the worst care scenario happened, they would not be allowed to see me or to inherit anything from me because we didn’t have that paper declaring us legal spouses. How sad that would be for both of us. Also, let us not forget the option of organ donation and medical experimentation after death. Both of which, by the way, I will be doing.

I know why this is making me (and probably everyone I talk to about it) uncomfortable. This whole process shows me just how unprepared I am for my possible death. The lack of prepared good-byes. The work I need to do to set that all up. It’s about hard choices and seriously thinking about the possibility of death. It’s about deciding who will get your beloved possessions after you are gone. It’s about whether or not I (or you) will leave a lasting mark on this world of ours. I know I want to with my writing.

It’s hard to convince yourself that it will all be OK in the end because you will be gone. I want to live until I’m at least 300 years old. I want to have the body of a 30 year old for that entire time. But, what I want and what will be are definitely two very different things. So, ever the planner, I am starting to do what I can to wrap it all up. By the end of this, I hope I will have a new peace of mind to know that all of this “stuff” is dealt with. That my friends and family will benefit when I’m gone.

Estate Planning: It’s For Young People, Too

I teach Estate Planning and Administration from an attorney/paralegal perspective at Shepherd Univerity to a classroom comprised mostly of seniors.  That is senior, young and getting ready graduate and start their journey to retirement and asset protection.  I think they are finally starting to get it as I take every opportunity to make the concepts applicable to them as well as their families.  I had a representative from Hospice of the Eastern Panhandle in Martinsburg, WV, emphasize, in the absense of assets, that living wills and advanced directives are useful, even for “invincible” young adults. It’s one of the easiest, and free things that they can do for themselves.

Estate Planning is Especially Important During Tough Economic Times

By Bernard Krooks

When confronted with a tighter budget or uncertain economic future, many people instinctually cut back on everything they can to compensate for potential losses. This is not entirely a bad thing, since excessive debt and lack of planning both help to contribute to deeper financial troubles. But redoing a budget to compensate for changing economic circumstances calls for enhanced planning, not putting planning off for another day.

Estate planning is often thought about in terms of numbers, property, assets and finances. While estate planning does involve all of these things, the primary focus of a good estate plan is the people who will benefit from it from your efforts and legacy. Estate planning is about maximizing the benefits of your work while you are alive and providing for family and loved ones after your death.

Keeping in mind the real importance of estate planning will help individuals stick to their plans or give them the push they need to start planning through even the tightest of economic times. Estate planning is easier than most people think, and will create peace of mind that is well worth the investment.

In addition to helping you organize your finances and assets in the short term, estate planning during tough economic times has obvious long-term benefits as well. Continuing to plan and make contributions to trusts, life insurance policies, retirement and other accounts will minimize the overall damage that could be done to your estate in the long term. Failure to plan during an economic downturn can actually serve to unnecessarily multiply the effect of the financial hardship many times over.

Estate planning is important to individuals and their families, and it is even more important in a down economy. Consulting with an attorney and sticking to an estate plan will provide peace of mind in the present and maximize benefits in the future.

Bernard Krooks is a [http://www.littmankrooks.com/]New York Elder Law and [http://www.littmankrooks.com/]New York Estate Planning lawyer with offices in White Plains, Fishkill, and New York, New York. To learn more, visit Littmankrooks.com.

Article Source: http://EzineArticles.com/?expert=Bernard_Krooks http://EzineArticles.com/?Estate-Planning-is-Especially-Important-During-Tough-Economic-Times&id=1930828