Estate planning in the digital age: how to make life easier for your executors

A recent story covered by national news has highlighted the difficulties families can face when dealing with a loved one’s affairs after death, particularly where important information has not been organised or recorded during their lifetime.

In the story, Louisa Nicoll’s husband, John, spent his final year helping his family prepare for life after his death, but despite careful planning, Louisa still faced upsetting and often insensitive administrative challenges from companies after he passed away. Now, she is campaigning for better bereavement support from organisations and encouraging families to have open conversations about death and end-of-life planning.

While making a will should be a crucial part of an individual’s estate planning, it is only one piece of the puzzle. Under the law of England and Wales, personal representatives are responsible for identifying and collecting a deceased person’s assets and liabilities. This process can become even more challenging if key information can’t be found.

In today’s digital world, many assets and records exist online. Email accounts, social media profiles, online banking, investment platforms, cloud storage and digital photographs may all form part of an individual’s digital legacy. If family members or executors are unaware of these accounts, or do not know how to locate them, estate administration can be delayed, resulting in additional expense and unnecessary stress at an already difficult time.

Importantly, this is not an issue that affects only retirees or those with substantial wealth. Every adult should consider how their affairs would be dealt with if they were no longer able to manage them themselves. For business owners, the risks can be even greater, as a lack of planning may disrupt the operation of a business and create uncertainty for family members, employees and fellow owners.

Practical steps everyone should consider when getting affairs in order

To help make matters easier for those you leave behind, consider:

• Reviewing your will regularly to ensure it reflects your current wishes.
• Keeping an up-to-date record of your assets and liabilities, including property, bank accounts, investments and pensions.
• Preparing a list of your digital assets, including email accounts, social media profiles, online subscriptions and cloud storage accounts.
• Recording where important documents are stored, including your will, lasting powers of attorney, insurance policies and financial records.
• Keeping details of your professional advisers, such as your solicitor, accountant and financial adviser.
• Reviewing pension and life assurance beneficiary nominations.
• Storing passwords and security information securely, whilst ensuring trusted individuals know how they can be accessed if required.
• Discussing your wishes with your executors and close family members so they know where key information can be found.

Additional considerations for business owners

If you own a business, you should also consider:

• Maintaining clear records of company ownership, finances and key contracts.
• Ensuring trusted individuals know where essential business information is held.
• Reviewing shareholder agreements, partnership agreements or constitutional documents to understand what happens upon death or incapacity.
• Putting in place a clear business succession plan.
• Considering lasting powers of attorney to enable trusted individuals to assist with business matters should you lose capacity.
• Reviewing whether business protection or shareholder protection arrangements are appropriate.

Making things easier for those you leave behind

Estate planning is about much more than deciding who will inherit your assets. It is also about ensuring that those left behind can deal with your affairs as smoothly and efficiently as possible.

Taking the time to organise your personal, digital and business affairs today could save your loved ones considerable time, cost and stress in the future. After all, one of the most valuable gifts you can leave your family is not just a well-drafted will, but clear and accessible information that helps them navigate an already difficult time.

If you would like advice on wills, lasting powers of attorney, business succession planning or wider estate planning in the digital age, please get in touch.

Our wills, trusts & probate team have recently been recognised again in the Chambers UK High Net Worth guide for their expertise and exceptional level of client care.