Some have said that nothing ever dies on the Internet. While this dictum is typically used as a warning that what we put online may come back to haunt us, our online accounts can outlive us and even live in perpetuity. Having a digital estate plan that arranges what happens to these accounts when we die is important.
Cashless and contactless interactions have increased these past few years, thanks to the COVID-19 pandemic. These transactions are commonplace on smartphones and Androids and will only continue to increase when making payments, young and old.
In modern estate planning, digital accounts such as PayPal, Venmo, Zelle, Google Pay, and Apple Pay must be considered as much as bank accounts, retirement accounts, and other traditional financial and payment accounts. Digital accounts can be conveniently closed upon the holder’s death, provided a plan exists. These accounts can still be closed without a digital estate plan, but not having an estate plan could make things harder for your loved ones.
Founded in 1998, PayPal was not the first company to offer online payments but the first to obtain widespread adoption. Today, it is the top payment application among Americans, with around three out of four respondents saying they are active users.1
According to PayPal, only the authorized administrator or executor of a deceased person’s estate can close the decedent’s account.2 These steps entail providing the following documentation to the company’s Deceased Account Team:
Once PayPal receives this information via email or physical mail, the requester will either be issued a check or given access to the deceased customer’s linked bank account to transfer the balance. PayPal will then close or lock the account.
Apple Pay is a relatively new player in digital payments. Still, since launching in 2013, it has seen rapid adoption and reportedly surpassed MasterCard recently in the dollar value of annual transactions.3
It is more appropriate to call Apple Pay a system rather than an app. CNET describes Apple Pay as the linchpin that makes digital iPhone payments possible using debit and credit cards, an Apple Card, or Apple Cash.4
Apple ID is the account used to access all Apple services, including Apple Pay. The company offers three ways to gain access to and delete a loved one’s Apple ID and associated data. The most burdensome way requires a court order that verifies the following information:5
Adding a Legacy Contact is the easiest way for an Apple user to give someone access to their Apple ID.6 This method involves an access key provided to a trusted person and a copy of the Apple ID account holder’s death certificate. Once inside the account, Legacy Contact can delete the Apple ID.
Apple also allows someone with an Apple ID and the required legal documentation to delete a deceased person’s Apple ID permanently. Deletion requests are made on the Digital Legacy page.
Venmo was launched in 2009 and was bought by PayPal four years later. Its users, around 80 million and mostly based in the United States, can use the Venmo app to pay for goods and services, transfer funds to friends, and receive direct deposits.7 The Venmo digital wallet, like PayPal, can be linked to a user’s credit card and bank account.
The Venmo help center explains submitting a deceased customer notification for the Venmo Credit Card issued by Synchrony Bank.8 It links to a form that asks for the cardholder’s name, address, account number, Social Security number, and information about the executor, next of kin, and requestor.
The Venmo support team must be contacted for assistance with the cardholder’s Venmo account. The help request form has two options: one for customers who need help with their accounts and one for non-Venmo customers. There is also a place to add attachments. These could include documents necessary to close out the account, such as a copy of the decedent’s death certificate and legal documentation authorizing the requestor to act on the decedent’s behalf.
While Apple, PayPal, and other companies have automated systems for accessing or closing a deceased user’s account, some companies, like Venmo, are unclear about how to access digital assets and may need to be contacted directly for assistance.
A digital estate plan that contains account login credentials can speed up settling online payment accounts. Login passwords can be stored in a password manager, Password or LastPass, and shared with family members for easy access. This information can be placed in a password-protected digital spreadsheet or handwritten list.
Ideally, a digital estate plan lists all devices and online accounts, instructions for accessing them (e.g., the associated email address, username, password, or PIN), and how to settle each account.
If you want no one to access your accounts after you die, that can also be part of your legacy. Consult an estate planning attorney to ensure everything is spelled out.
Most states have adopted rules governing how an executor, agent, or trustee can access a person’s online accounts when they die or become incapacitated. To take control of your digital estate in a way that conforms with your wishes—and the law—contact the law offices of Altman & Associates at 301-468-3220 or online at Altman & Associates, www.altmanassociates.net, to schedule a meeting.
