Digitalization and the Era of Biometric Passkeys
The increasing need for passwords in the digital age presents complexities in accessing a multitude of devices and data points. In a bid to standardize and possibly reduce our dependency on passwords, the Fast Identity Online Alliance was established in February 2013. Expanding on this concept, Apple announced at their June Developer Conference that they will replace traditional passwords with biometric passkeys. This transition, utilizing fingerprint or facial recognition technologies, is set to initiate this fall. It’s expected that other organizations will soon adopt this progressive approach.
While introducing biometric passkeys aims to enhance daily interactions with digital devices, it also poses potential complexities in estate planning and administration.
Categories of Digital Assets in Estate Planning
Various categories of digital assets warrant thoughtful consideration in estate planning. These include:
- Personal Assets: Personal digital assets encompass many elements, including e-mails, text messages, digital literature, document files, visual and audio media, music files, spreadsheets, PowerPoint presentations, tax records, and more. These assets can be stored on different platforms, each requiring unique access protocols such as usernames, passwords, or responses to security queries.
- Financial Assets: Many individuals have transitioned to managing their financial transactions online. This includes operating bank and PayPal accounts, investment and brokerage accounts, and handling payments for various bills and taxes.
- Business Assets: Business owners may possess significant digital assets, including customer databases with sensitive data and transaction histories. Professionals like physicians, attorneys, or CPAs may hold client records with confidential information.
- Other Digital Assets: This segment includes digital assets such as domain names, blogs, loyalty program benefits, and digital gaming property.
The Significance of Digital Estate Planning
Incorporating access to digital assets as part of your estate planning can offer several advantages:
- Simplifying Processes During Incapacity or Posthumous Events: For individuals with a multitude of digital profiles, this can prove challenging for families and fiduciaries during times of incapacity or death, where rights to access digital assets can be ambiguous. Adequate planning can help mitigate these complexities.
- Reducing the Risk of Identity Theft: Quick access to digital information can help prevent identity theft. Fraudulent activities can occur until the deceased’s information is updated in official databases, making immediate access critical.
- Preserving Personal Legacy: Digital assets often hold sentimental value for families. As physical memorabilia is increasingly replaced by digital content, preserving access to these digital keepsakes becomes crucial to maintaining the legacy of the deceased.
Making Digital Estate Planning a Priority
In the digital era, the shift towards biometric passkeys and the resulting implications for estate planning underscores the importance of forward-thinking and comprehensive strategies. As digital assets increasingly permeate our lives, they become integral to our legacy, demanding careful consideration in estate planning. With our in-depth expertise and personalized approach, Legacy stands ready to assist you in navigating these evolving challenges. Whether your assets are personal, financial, business-related, or of another digital nature, our team will ensure that your estate planning needs are thoroughly addressed in line with the digital revolution. Trust Legacy to be your reliable partner in securing your digital legacy and safeguarding your estate for future generations.
If you are a Legacy client and have questions, please do not hesitate to contact your Legacy advisor. If you are not a Legacy client and are interested in learning more about our approach to personalized wealth management, please contact us at 920.967.5020 or email@example.com or visit https://www.lptrust.com/our-services/estate-planning/.
This newsletter is provided for informational purposes only.
It is not intended as legal, accounting, or financial planning advice.