If a company cannot continue operations following the death of its owner, it would be a terrible shame and, more likely, a regrettable waste of resources. There are ways to prevent this situation, and digital estate planning is one of them. It is a practice that can save a lot of time, trouble, and effort. When safeguarding your business, this is an effective way to prepare before death.
There are a few exceptions to this rule, such as when the essential structure of the company makes it impossible for the business to continue operating after the owner’s death. As an illustration, there are business structures like sole proprietorships and conventional partnerships in which the company dissolves upon the owner’s death. However, in many other circumstances, digital estate planning plays an essential role in ensuring that the company will continue to operate successfully under new management in the years to come.
Why Businesses Should Implement a Digital Estate Planning Strategy
It is now possible to complete and store all the tasks for your business online. This process shows that a typical company’s assets are in digital form. That is why safeguarding your business digitally is now also crucial.
If the owner passes away and they are the only person who can access these digital assets in their totality, then there will be a significant problem. If the business’s inheritors cannot access the accounts in the first place, how will they keep the business operating?
As the owner of the company, when safeguarding your business it is your responsibility to create a digital estate plan so that if something unfortunate happens to you, or even if you are just temporarily incapacitated or unable to run the business for whatever reason, the person who is going to take your place will have all the data necessary to gain access to the company and to run it if you can no longer do so.
How to Make an Electronic Will and Estate Plan in Safeguarding Your Business
Although it may appear challenging, developing a digital estate plan is simple when safeguarding your business. It is very similar to writing a will, except that it is solely for your company’s digital assets rather than physical ones. You will start by making a list of all your digital assets and going over each one. Create a list and check that it covers everything before submitting it. You must include anything in digital format on the list. This plan contains documents, databases, photos, videos, and login credentials for accounts that apply to the organization.
After you have finished your list, consider what you want to transpire with the people on it. Include the name of the individual with whom you would like to entrust each asset. Make it clear what you want them to do with it, how you want the assets managed, and everything else you want them to do with it. Each person appointed needs a hard copy of all the login names and passwords needed to carry out their duties.
The Importance of Properly Managing Passwords in Safeguarding Your Business
This takes us to the most important part of digital estate planning: the management of passwords. Do not hand your potential successor a list of passwords to remember. Ensure that these passwords are up-to-date. It is the same as providing them with nothing at all if you leave them a list of defunct login information to use.
Using a password manager is the simplest method for achieving this goal. It is a piece of software that, when installed on your computer, will save all your login names, passwords, and other sensitive information in a manner that is both convenient and safe. When you change a password, which should happen regularly, you should also update the records to reflect the change.
Prepare for the Future with a Well-Organized Digital Estate Plan
A significant achievement is reaching the point where one’s family and loved ones can take over the family business. The ability to pass it along to the next person with no problems is just as important. Because of this, you should already start safeguarding your business and preparing for your digital estate as soon as possible, preferably right now. This will enable your loved ones to carry out your wishes for how your digital assets will be managed after your passing.
We have produced two helpful infographics that you can download to assist you in making some of these important business decisions. These infographics are a Digital Estate Planning Checklist and a Password Cheat Sheet. To ensure that everyone in the office is up to date on these significant matters, please forward these two resources to everyone.
You can call us whenever you feel ready for the next phase!