Increasingly, our digital assets (email accounts, Facebook pages, online bank accounts, and any other online presence) have become intrinsic to our everyday lives. But what happens to them when we die?

Most companies have disaster recovery plans to keep business operations running in the untimely event that a business owner, partner, or key employee dies. Does your recovery plan include all your online accounts and any employees, no matter what level, who might hold the passwords to those accounts?

Without access to online accounts, you may not be able to control online bill payments or respond to customer inquiries and orders. If you have digital assets on the Cloud, host websites, or third-party applications outside your company's immediate control, it may not be easy to access the accounts without the authorization of the original person who created them. If you are unaware of the security policies in place at the companies that host your digital assets (such as Google, Salesforce, ebay, or even the owners of your website's servers), the survival of your business may be at risk.

Prepare to transfer digital assets, not just tangible assets

Most estate plans deal with issues involving the transfer of tangible assets but not digital assets. But consider these statistics:

Further, even if certain rights to digital assets are considered and bequeathed under a valid will, the bequest may not be respected by the host of the digital assets. The hosting company may not provide quick access to a fiduciary or relative when needed. If the matter has not been addressed by state law, then the host's policies may prevail over a bequest under a will.

Know your hosts' policies

As the amount of digital assets we hold increases, so too does the number of companies holding our digital assets. Each one of these companies may have a different policy in place (or none at all), making it very difficult for a fiduciary or surviving family member to effectively manage a decedent's digital assets.

The major host companies are dealing with a decedent's digital assets in different ways. For example, Google allows its users to customize their settings to either delete data after a period of inactivity or to send data to selected contacts. Facebook, on the other hand, allows family or friends of the deceased to request accounts to be memorialized.

Talk about power of attorney or fiduciary duty

A handful of states have enacted legislation providing fiduciary access to digital assets and some are in the process of considering legislation. In North Carolina, for example, proposed amendments to estate and guardianship laws would allow a representative to manage a decedent's digital assets if a valid power of attorney has been executed. In addition, the National Conference of Commissioners on Uniform State Laws is in the process of drafting the "Fiduciary Access to Digital Assets Act" to provide uniform rules granting fiduciaries the authority to access and manage digital assets and accounts.

Be proactive and gather information

Until these issues have been addressed by legislation in your state, contact your financial institutions and other companies hosting your digital assets and learn what information needs to be provided to give your fiduciary or family members access to these accounts. For social media accounts, understand the settings and consider leaving passwords in a safe place. Otherwise, your digital assets may not be bequeathed, terminated, or continued as you intend.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.