Securely providing financial information to family members

[gwill1010]

>>I use to keep a text file with passwords but I found it gradually went out of sync with the password manager.

Please, no one do this(use a text file on your computer). At least get Roboform for free and store in the encrypted text (safenote) area.

 

[frank05]

I am putting together a document listing all of our financial accounts details for our daughters in the event something happens to us. I do not want to list passwords or any sensitive information. Any suggestions on how to do this safely and securely?

Just remember to give them pin and master password to your cell phone or where you store your hardware key (e.g. Yubi). It was a pain just getting into accounts after a recent relative’s passing because all the websites wanted to send a two factor number to the phone.

 

[RunningBum]

I have such a document in my filing cabinet and my niece/executor knows where it is and what it looks like. I store it in a 3-ring binder with all will, medical and financial power of attorney docs, etc.

I do not include any usernames and passwords in the document or provide those to her in any way. At all. I do provide her with the name of the financial institution, the account number and the phone number of customer service for the financial institution. Upon my death, she can do the necessary steps using that information.

I do similar, the doc is in a folder in my (somewhat) fire proof safe. No PWs. I occasionally change those anyway and don't want to have to keep up with the doc.

 

[athena53]

For anyone willing to trust Fidelity, they offer something called FidSafe, which is designed to deal with exactly this issue.
Secure, free document storage from Fidelity

Just one of a number of similar resources, but I think they have it pretty well thought out.

Thanks! Will definitely look into this - I have a Fidelity account and it's a good winter project. Right now I have hard copies of all my legal documents, brokerage statements and taxes but the latter two are as of year-end 2023. They're hidden in an obscure area that only a very persistent burglar would find, along with my jewelry. DS and family know where they are.

 

[ivinsfan]

Just remember to give them pin and master password to your cell phone or where you store your hardware key (e.g. Yubi). It was a pain just getting into accounts after a recent relative’s passing because all the websites wanted to send a two factor number to the phone.

This is the takeaway IMO..be certain they can open and use your cellphone.

 

[RetMD21]

Good advice.

I experienced this when my Dad died many many years ago, had to go through is desk drawers and file cabinet looking for anything that was $$ related. Worse was insurance companies as he kept old papers that were no longer valid (or company lied).

Just getting over the inertia of doing it is my issue.

I have been through that too. I keep a paper list of active accounts and mention closed accounts and categories like life insurance that I don't have. I anticipate that my passwords may be inactivated at death. Successor trustees should be able to get their own.

 

[donheff]

I have my data in an app called Password Safe and a hint in the document that will prompt my daughter and DW as to what the master password is. I have thought about leaving a hard copy list someplace they can access it. I remember an article about passwords by Bruce Schneier, a well know security guru. He noted that he kept a written sheet in his wallet - easy to access, hadn't lost his wallet in decades, and could quickly change passwords if his wallet got lost. That resonated with me a bit at the time but leaving a written sheet around the house when we start getting old and confused doesn't sound good. Still, handing out your master password is a risk too.

 

[Sojourner]

And if the bad guys crack your email, and intercept that one so you don't see it? No thanks!

Nope, wouldn't be that easy. Not only would they have to crack your email (which would be a disaster in its own right), they'd also have to crack your Bitwarden login credentials. Because the email BW sends you simply alerts you to the emergency access request, and then you must log into BW to signal that you're okay (i.e., to decline the request). The odds that anyone could hack into both my email AND my BW account (both of which have very strong passwords and 2FA) has got to be fairly infinitesimal. I'm not worried.

 

[jim584672]

You could create the document in Word and Export to PDF with a password. Then share the password over a secure channel. I believe it uses AES128 which is secure.

 

[aja8888]

I have my data in an app called Password Safe and a hint in the document that will prompt my daughter and DW as to what the master password is. I have thought about leaving a hard copy list someplace they can access it. I remember an article about passwords by Bruce Schneier, a well know security guru. He noted that he kept a written sheet in his wallet - easy to access, hadn't lost his wallet in decades, and could quickly change passwords if his wallet got lost. That resonated with me a bit at the time but leaving a written sheet around the house when we start getting old and confused doesn't sound good. Still, handing out your master password is a risk too.

My bold above.....even if this DOESN'T WORK (they can't figure the hint out), you will be dead anyway and won't ever know!

Make sure they have the master password somehow.

All I can say is that it was a GOOD THING I had my DW's passwords on paper when she passed away. And having her phone pass code was the best thing due to 2FA.

 

[surprising]

Just remember to give them pin and master password to your cell phone or where you store your hardware key (e.g. Yubi). It was a pain just getting into accounts after a recent relative’s passing because all the websites wanted to send a two factor number to the phone.

I wondered about this. What if the phone can't be found? Will they be able to still get in without it?

 

[Bestwifeever]

I have a list of what accounts we have and where they are, with phone numbers. I think that's enough for us--no need for online access at that point, as our kids are not authorized on the big accounts and trying to go online after our death might complicate things. I'm assuming they'll be filling out paperwork anyway.

 

[jsncpa]

Quicken sent me a marketing research survey a while back about a service to address this. Looking now, I see that they implemented it. It sounded interesting, but was overpriced by my thinking. It looks like they reduced the price substantially. Not advocating it, just saying it's there.

LifeHub

 

[aja8888]

Quicken sent me a marketing research survey a while back about a service to address this. Looking now, I see that they implemented it. It sounded interesting, but was overpriced by my thinking. It looks like they reduced the price substantially. Not advocating it, just saying it's there.

LifeHub

It's looks very comprehensive, but the question is...."do you want to put all that important and sensitive information in the hands of Quicken?"

 

[threeonesix]

I have it on a flash drive that is stored in my gun safe. DW and DS have the safe combination. Other docs like real estate and birth certificates are kept there too. Oh, and some guns.

Keep in mind that flash drives do go bad.

 

[threeonesix]

My advice would be to follow the 3-2-1 computer backups strategy.

1. Keep three copies of your data ...
2. ... on at least two different types of media ...
3. ... storing at least one copy "off site".

In this regard, get the pertinent information on password-protected flash drives. Send 1 or 2 flash drives to each child / inheriter (2 preferred as flash drives can go bad over time). Keep the same data in paper form, either with a lawyer or in a bank safe deposit box. Provide the same lawyer the password to the flash drives, and/or put the password on paper in the same bank safe deposit box.

There are also several providers of the "dead man's switch" software online. Some free, some low-cost. Dead man's switch - Wikipedia If you are Google-centric, as I am, Google's Inactive Account Manager. Using this option allows you to store some useful data in your Google Drive that others can access in the event you become incapacitated for at least three months. Keep in mind that NO ... and I repeat NO ... cloud storage is 100% secure, so I would not store the whole farm there, only enough to get your offspring started. Such as a document with financial logins but the passwords are presented only in "hint" form, something they would be able to easily decipher. This would not work for me, and really should not work for you, because I don't actually know any of my passwords, they are stored in multiple password managers and are all a minimum of 20 characters that are a combination of numbers, small/capital letters and symbols. The Master password to those password managers would be decipherable using hints, but it's also stored in my safe deposit box.

All said, I still think bank safe deposit boxes are the safest bet. How often do you hear about those being stolen? Home safes are stolen every day in this country. And many that say they are fireproof are anything but. Some say that, but have holes in the back or bottom to be mounted to a wall or floor, and the owners never mounted them. I have some friends who lost five figures in cash to a house fire because they thought their safe was fireproof. Thankfully not high five figures, just a couple months of expenses. Tough lesson to learn the hard way.

 

[zinger1457]

Why the need for all the password sharing? When I did my Will my lawyer had me list all my financial accounts (no passwords) and suggested for each account update the beneficiaries listed which I did, it would be faster than dealing with probate. Can easily pass that account info on to others without worrying about security.

 

[badatmath]

I'll share my password system again, as it also can be used for cases like this where you want to let someone else know your password, but still keep it unusable for anyone who gets that info.

I have a list of logins and passwords on paper in plain view, and on the computer. But, they aren't the real passwords. They are just a small portion of the password. They are added to two 'keywords' that I have memorized (easy, as I use them often). For example, say you chose the 'keywords' "APPLE123", and "zebra789" (but don't use actual words, those are weaker). The written password for my local bank is "L$B", so the actual password is APPLE123L$Bzebra789".

All you need to do is to share those keywords with them ahead of time, and don't write them down where you keep your passwords. Limit the keywords to alpha-numeric, and add any special character requirements to the unique written portion, that assures your keywords will be accepted at all systems (which might reject certain special chars).

I do something similar to this but pretty simple. You can't find the whole pw without knowing the system.

It is more a habit from when w*rk made me change my millions of pw all the time. . . all of course different lengths and expirations.

 

[badatmath]

This is the takeaway IMO..be certain they can open and use your cellphone.

Hmm. I require voice calls to my land line for the most important 2FA. I can't really have that lost or stolen. . . but I also don't travel . . . hmm. Since I am not married I can't think of anyone who is really harmed by this but I will give it some thought.

 

[ivinsfan]

Hmm. I require voice calls to my land line for the most important 2FA. I can't really have that lost or stolen. . . but I also don't travel . . . hmm. Since I am not married I can't think of anyone who is really harmed by this but I will give it some thought.

I learned something from you! I was thinking about sending a code to a cell phone .

 

[badatmath]

I learned something from you! I was thinking about sending a code to a cell phone .

Well on this topic . . . I read some people complaining on reddit yesterday that they weren't getting authentication texts for SSA. . . and that those often come from third party providers and that in some cases the users had blocked the provider in the past. . . but when they asked for a voice call it went through fine. IDK how true any of that is or how to verify it.

My banks and credit cards offer voice calls or texts or emails but I can't say if that applies to all providers.

It is an automated voice that calls not a live person of course. I only do "business" on my computer anyway, not on the phone.

 

[jsncpa]

It's looks very comprehensive, but the question is...."do you want to put all that important and sensitive information in the hands of Quicken?"

I go through life on the assumption that all that important and sensitive information is available on the Dark Web for thirty bucks, so I personally wouldn't have much of a problem with it.

 

[foxcreek9]

We use LastPass. Just have to share our master password with daughters. Which they store in their LastPass.

LastPass family has emergency access too. I find this preferable than sharing master password.

 

[foxcreek9]

Why the need for all the password sharing? When I did my Will my lawyer had me list all my financial accounts (no passwords) and suggested for each account update the beneficiaries listed which I did, it would be faster than dealing with probate. Can easily pass that account info on to others without worrying about security.

Main reason is to handle day-to-day activities in case your loved one is incapacitated for some reason.

 

[brett]

I believe that the best approach is to use common sense as to what is realistic and practical given ones situation and family dynamics.

I have never bothered to author any sort of investment strategy for my spouse. She is fully conversant with the allocation issues.

The reality is that any written investment direction/plan I provide will be stale within 6 months, let alone a year or more. So why bother? She is very capable of dealing with the FA.

She really only has to know where the accounts are and who to contact for assistance/guidance should I get hit by a bus. Lawyer, accountant, FA, funeral home. Ditto for our two children.