Who is going to unravel all your online financial dealings on your demise?
| Related: | Personal Finance•Financial Planning•Wills |
The banks (and others) tell you not to divulge to others, write down or store on a computer, passwords and data that could allow others to access your accounts. Excellent advice if it was not for three reasons,
1 We have so many accounts with usernames, passwords, secret questions, memorable names, plan numbers and account numbers etc., that we have difficulty remembering them all. We are also advised not to use the same passwords for other accounts. Just think of the number of logins you have. I have 11 just for financials some of which only need access once per year e.g. HMRC.
2 As we get older our memory generally deteriorates, I can vouch for that. Before I made my own solution I found that I was clicking the 'forgotten password' link more often.
3 You die (sorry but we all do), How is any executor supposed to find all your financial affairs particularly if you are alone at that time?
It seems to me that at some point in the near future there will have to be some new legislation to enable executors to be able to legally 'crack' peoples computers to extract all the information because he is not going to even know what you have. In days gone by it was easy as all documents were usually kept in a shoe box and later we progressed to document files. Otherwise the number of dormant accounts will greatly increase and the financial institutions that we deal with will get the benefit. Now that box is our Favourites panel but who else has the key? Nobody if you follow the advice.
My personal solution is to use a password protected Access database to store all my financial details referred to in 1 above. I can open this any time I need to find any detail about my financial dealings such as passwords, plan numbers etc. So how does someone else open the file? Two people, neither of whom has access to my computer have been given a letter (to be opened in the event...) which contains half a filename and half a password, Together these open a hidden file which contains the password to the Access database. Hopefully this arrangement will satisfy the impossible demands of those who would have the access codes die with us according to their rules. You also need to make sure they can access your computer and are not locked out. Also ensure you have up to date backup files (weekly, monthly or as required) in case of problems.
What will happen in your case?
Responses (4)
Hi Sealate and welcome back.
This is in fact a serious problem and I myself am in urgent need of making a will ( I am a widow ) and I will no doubt appoint my son and solicitor as joint executors as there will be property involved.
What my plan is to create a written database of everything that I own as an asset ( property, life assurance and all bank/savings accounts with full details and account numbers ) and this will be lodged with my solicitor. As such, there will be no need for passwords/user names etc as the solicitor will make formal application to everyone concerned based on the comprehensive information supplied. I will probably also give my son an exact copy but of course he will have no formal access to any of them. I would really not wish anyone to have to worry about accessing personal computer files on my death.
Of course the whole situation may well change if a comely woman comes my way! Good questuion raised though.
I can see your point, Sealate, but my solution is virtually identical to Snoopy's. A list of all accounts and account numbers, updated as necessary, kept with my will which is held by my solicitor. As Snoopy rightly says, usernames/password etc are not necessary. That way, changes can be made as and whenever necessary.
Frankly, it was a damn sight harder trying to find the relevant passbooks/paperwork etc by physically going through the deceased's belongings...as I know from experience!
In my case, as a single child, not married and with no dependents, I won't really care :-) However the optimist in me always hopes things might change (well, the not being single bit, anyway!) in which case the solution of half and half info sounds good.
Yes you raise a good point Sealate.
Hubby and I made a will when we bought the house, it's fairly cut and dried with all the intrinsics evenly shared between both of my sons and their families.
And yes of course someone needs to know how to access all the data, I'm sure that's where a great many single or unprepared folk will come unstuck unless of course they're as well organised as you are.
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Hi Snoopy48, A reasonable plan of action but one that would need updating if for instance you changed to a new ISA provider. In my database I also have things like contact details, who needs to be informed immediately (pensions) numbers for lost cards etc. in fact everything I can think of. One reason for my not using a solicitor apart from exhorbitant charges is that all my dealings with solicitors leave me with a negative feeling. They get paid regardless of their (in)competence level.
I raised the question so that people can think about it before it is too late.