Many farming operations now rely on some type of online services. As anyone who has used online services knows, a password is required. If something happened to you today, would your executor or trustee know your passwords? Could they get information to get your bills paid and manage your assets? This is becoming an important question as estate planning is completed with farm families.

For many people, computer and online passwords have become more important than Social Security numbers and dates of birth for identification. Without a password, it is difficult to access someone’s computer or know what accounts they may have. Financial institutions will generally not talk to anyone whose name is not on an account, nor will they provide password information.

Consider the following example: A farmer has transitioned to doing most of his business on his computer. He manages his bank account online and no longer receives paper statements. His grain and livestock sales are deposited directly into his bank account, and he pays his bills though his bank’s bill pay system. Farmer passes away unexpectedly without providing anyone with his passwords.

The first problem may be to obtain access to his computer. Many computers require a password to even access the programs and information on the computer. If his executor or trustee can get access to his computer, he or she likely will not have the passwords to farmer’s accounts. They will not be able to access his emails to see invoices, access his accounts to pay bills, or perhaps even know what vendors to contact. Without access to the accounts, the farmer’s executor will likely need to go to the probate court and get a court order to determine what accounts the farmer owned and authority to access the accounts.

As the example shows, it is critical to have a backup plan for your passwords. Everyone should have a plan that allows a spouse, family member or other trusted person to access their computer and online accounts. Obviously, the plan should be secure as the information should not get into the hands of someone who will use it for nefarious ends. One solution is to have account information and passwords written on paper and have the paper in a safe or lockbox. However, the passwords need to be updated regularly as they change. Also, make sure someone has the combination to the safe or that you have provided authority for someone else to access your lockbox. Your account and password information in a lockbox that no one can access (or is aware of) does little good.

Another solution for your accounts and passwords is to leave the information with your accountant or attorney. Both accounting and legal professionals should already have secure systems to store your information. Ask them to keep a copy of your passwords, and let your family know that your accountant or attorney has the information if something should happen to you.

On a related note, try to keep your financial information updated and in good order. When someone dies, an income tax return is still due for the year in which they passed away. People who leave behind a poor recordkeeping system, or invoices and receipts scattered throughout the office leave a big mess for their family or executor. Also, be sure your family or executor is familiar with your advisers — accountant, attorney, financial planner and insurance agent. These people will be of great assistance to your family if you pass away.

Moore is an attorney with Wright & Moore Law Co. LPF. Email him at [email protected] or call 740-990-0750.