When considering the disposition of an estate, most of us think about how tangible assets will be distributed, such as property or cash. With the Internet, most of us also have accounts such as social media accounts and accounts that store digital assets like pictures. These accounts should also be considered in an estate plan.
Additionally, an estate plan should also include a person’s wishes for a funeral, and should address preferences for matters such as a traditional burial or cremation. A person may also wish to undertake such arrangements with a funeral home, including whether to prepay for such costs or to set aside an account that can be used for the same.
Lastly, while an estate plan itself may be complete, it will nonetheless be difficult for a personal representative to administer an estate without a list of matters as bank and other accounts, life insurance policies, and other online accounts (including login credentials). This page discusses all of these items.
As estate planning lawyers, we help clients create effective estate plans and understand what they should do to make estate administration easier for those left behind. If you want a comprehensive plan that spares your loved ones from unnecessary burdens, call North City Law at 425-645-4684 to schedule a consultation.
Why Should Funeral and Burial Plans Be Part of Estate Planning?
Few decisions cause more stress for grieving families than trying to guess what a loved one would have wanted for their funeral or memorial service. Washington law allows individuals to put their wishes in writing through a Disposition Authorization Form or as part of their estate planning documents. This may include preferences for burial, cremation, religious observances, or even music and readings.
By creating funeral instructions in advance, families are spared from disagreements, rushed choices, and unexpected expenses. Planning also helps prevent conflicts between relatives who may have different ideas about what should happen.
How Do Accounts and Passwords Affect Estate Planning?
Bank accounts, retirement funds, and credit cards are only part of today’s financial picture. Increasingly, digital accounts such as online banking and cloud storage play a major role in daily life. Without access, families may be locked out of essential information.
Estate planning should include an organized record of accounts, usernames, and passwords, ideally stored securely and accessible to the personal representative or trustee. Washington recognizes the importance of digital asset planning under the Revised Uniform Fiduciary Access to Digital Assets Act (RCW 11.120), which allows fiduciaries to manage online accounts if they are authorized. Including clear instructions ensures loved ones can pay bills, close accounts, and preserve valuable digital memories without unnecessary delay.
What About Social Media and Digital Assets?
Social media profiles, online photos, and cryptocurrency wallets are digital assets that may carry both financial and sentimental value. Without proper planning, these assets may be lost forever or subject to hacking and fraud.
Planning should address:
- Social media accounts, including whether they should be memorialized, closed, or transferred
- Email accounts, to preserve important communication history and files
- Cryptocurrency and digital wallets, which require specific instructions and access keys
- Cloud-based storage, to protect family photos, videos, and documents
By designating a trusted person to handle these digital assets, families can avoid the frustration of dealing with unresponsive tech companies or permanently losing access.
Should I Pre-Plan Payment for My Funeral or Final Expenses?
Washington law allows individuals to prepay funeral expenses or set aside funds specifically for this purpose. Doing so prevents families from scrambling to cover costs immediately after a death.
Options include prepaid funeral contracts with a funeral home, payable-on-death accounts at a bank designated for funeral costs, or life insurance policies with a specific funeral benefit. These arrangements ease the financial burden on loved ones and ensure your final wishes are carried out as intended.
How Can I Reduce Stress for My Loved Ones?
The most meaningful gift of thorough estate planning often is not financial. It is emotional peace of mind. Families who know their loved ones’ wishes can focus on grieving and supporting one another, rather than facing uncertainty, disputes, or financial stress.
By addressing funeral wishes, passwords, digital assets, and practical details in advance, individuals give their families the confidence that they are honoring their loved one’s life the way they wanted.
What Practical Steps Should Be on My Estate Planning Checklist?
Creating a comprehensive estate plan is only part of the process. In additional to the estate plan itself, there are other matters that should be undertaken that will be helpful for family members and a personal representative after a person’s death. By organizing these items now, you can provide clarity, peace of mind, and a smoother transition for your loved ones.
These matters include:
- Funeral and Burial Instructions: Write down whether you prefer burial, cremation, or another arrangement, and note any special wishes for a memorial service. If you want to prepay for a funeral or cremation, your funeral director will likely work with you to address these matters.
- Disposition Authorization Form: Consider completing Washington’s legal form to ensure your funeral instructions are legally enforceable.
- List of Accounts: Provide a secure record of financial, retirement, and insurance accounts, as well as any automatic payments or loans. This will help your personal representative more easily understand all of your accounts.
- Passwords and Access Information: Store login credentials in a secure but accessible way so your personal representative can access and manage your accounts.
- Digital Assets: Give instructions for social media, email, cryptocurrency, and cloud storage. Note whether accounts should be closed, memorialized, or transferred.
- Beneficiary Designations: Review life insurance policies, retirement accounts, and payable-on-death accounts to make sure they are up to date and aligned with your estate plan.
- Legal Documents: Keep your will, trust, powers of attorney, advance directives and the other matters included in this list organized and accessible.
- Emergency Contacts: List people who should be notified right away, including family members, attorneys, and financial advisors.
By completing this checklist, families are spared from confusion and conflict at a time when they most need clarity and comfort.
How Can North City Law Help With Planning Beyond the Basics?
At North City Law, as Washington estate planning lawyers we go beyond wills and trusts. We help families consider the full range of issues that arise after death. If you are ready to create a plan that protects your family in every sense, call North City Law today at 425-645-4684 to schedule a consultation.