An online place to store information for your heirs

File photo
File photo

Summary

  • Digital vaults can hold the location of your will, bank-account numbers, ongoing subscriptions, recipes—anything your heirs will find useful

A growing number of digital-vault providers are competing to help you organize and secure your financial and personal information while you’re alive—and simplify things for your heirs after you’re gone.

Digital vaults can be used to store vital information such as the location of wills and trusts, where you bank, who holds your mortgage and what investments you own. Users can list personal devices, subscriptions and memberships they’re paying for, and preserve memories—even old family recipes.

Security and financial issues can arise when heirs lack a way to swiftly locate and close accounts, or if they don’t know about automated payments. Digital vaults allow their owners to organize traditional and digital accounts and set controls over who has access, which can minimize the chance of lost, unclaimed or stolen assets in the event of disability or death.

Many people might be reluctant to store this information online. But bank-level security, as well as strong privacy controls, can help mitigate these concerns.

“If your goal is to create an estate plan that makes it easy for your assets and your most valuable things to pass to your family, digital vaults can help you organize," says Deirdre R. Wheatley-Liss, principal at Porzio, Bromberg & Newman, a law firm in Morristown, N.J. “I could draft the most beautiful estate plan in the world, but if your heirs don’t know where the documents are and they don’t know they even exist, it’s useless," she says.

The look and feel of digital vaults, as well as how easy they are to use, varies by provider. Cost also varies, but users can generally expect to pay between about $4 and $10 a month for basic storage services.

There are some caveats. These products and companies are relatively new and could be acquired by other companies or go out of business, potentially hindering access to your data, though many platforms say users always have the option to export their data. To the extent that you upload records into the vault, however, be sure to keep paper copies or other digital copies.

“I think it’s a great way to organize information and make it useful to others, but I don’t think a digital vault should be used to replace all other forms of record-keeping," says Patrick Hicks, head of legal at Trust & Will, an online estate-planning company based in San Diego.

On some platforms, users enter account numbers and passwords, but others don’t allow password storage.

“If you are going to input passwords, it’s critical to be aware of what security measures the provider has in place," Mr. Hicks says.

It’s also a good idea to ask about cyber-insurance coverage and how you might be protected in the event of a hack. This information is not likely to be found on a provider’s website. But at a minimum, the provider should spell out its privacy policies and data-protection protocols. Look for bank-level security and third-party security compliance certification.

“If you can’t find information on a provider’s website about security, that’s a red flag," Mr. Hicks says.

Here’s a look at some of the options and features that are available today:

—AfterVault, based in Concord, Calif., organizes information by categories that include investment and bank accounts, social media, information about valuable collectibles, funeral arrangements, life insurance and pets. After a client’s death, the company will open the vault to designated recipients after a due-diligence process. The cost is $9.99 a month or $69 a year.

—Everplans of New York City, which was acquired earlier this year by National Guardian Life Insurance Co., asks for details that can help users uncover gaps in their planning, such as whether your phone is locked; if it is, the platform suggests you add your unlock code. Users are also prompted to record whether credit cards and other bills are enrolled in auto-pay, so heirs know to stop these automatic payments. Vaccine records can be included as well. Cost: $75 a year.

—SideDrawer, of Toronto, has a filing-cabinet design, with different folders for legal documents, insurance policies, personal finances, investments, memberships and more. A mobile app allows users to photograph or scan documents for uploading. The company offers a free-for-life version, allowing users to add up to 10 online folders and one collaborator. For $6 a month, or $60 per year, there is no limit on folders or collaborators. And, for an additional $6 a month, small-business owners can have a SideDrawer for documents, transactions and other company matters.

—Some vault companies will help close or resolve users’ accounts after death. Directive Communication Systems of Milton, Mass., allows users to enter multiple types of accounts, including banking, and it offers tools so users can automatically add and update their personal portfolios regularly. For customers with lots of accounts, the site can accept lists uploaded from a spreadsheet or Word document. DCS charges $175 for the first year, and $50 a year thereafter. In the event of death, for a flat fee of $600, the company will work with a customer’s representatives to close or obtain disclosure of an account’s contents.

—Legacy Concierge, based in Santa Fe, N.M., allows users to store their data and documents, digital assets and electronic records. The company charges $75 a year, or $750 for a lifetime fee. In case of death or disability, it will resolve all of a customer’s accounts in accordance with their wishes for a fee ranging from $250 to $4,500, depending on the number of accounts.

—Clocr (short for Cloud Locker) of Austin, Texas, suggests what types of documents to include in its digital vaults based on the user’s particulars. For example, if users say they have children under 18, the platform creates folders such as Guardian Forms, 529 Plans and School Records. The service currently costs $4.99 a month for the first year and $9.99 a month starting in 2022. If purchased this year, a lifetime subscription costs $399.


This story has been published from a wire agency feed without modifications to the text.

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