Beyond Wills and Trusts: Here’s What You Need to Know About Your Accounts

Many people think that setting up a trust or writing a will is all they need to secure their finances and digital assets. But what happens if you get seriously sick and can't manage your accounts? What if your loved ones find out too late that the trust you set up doesn’t give them access when they need it most?

This happens more often than you might think. A bank account can be locked even if it's included in a trust. That leaves family members scrambling to cover expenses or prove they have the right to access funds. The issue isn't the bank. It's how the account was set up.

A will or trust alone doesn't guarantee smooth access to financial accounts. Digital estate planning helps close the gap. Here’s what you need to know.

The Trust Problem No One Talks About

A common assumption is that listing an account in a trust and naming a trustee is enough. But many trusts don’t grant access to financial accounts during incapacity. They focus on what happens after death. If you have a major health event and can’t communicate, a successor trustee may not be able to use your bank account to pay bills or manage expenses.

Financial institutions follow strict rules. If an account isn’t properly titled in the trust’s name or if the trust doesn’t explicitly grant access during incapacity, the bank may deny access. The same can happen with investment accounts, online subscriptions, and other financial tools.

Digital Estate Planning Tips to Avoid Locked Accounts

Digital estate planning helps ensure your accounts are documented, organized, and accessible when needed. Here’s what you can do:

1. Confirm Your Accounts Are in the Trust

   • Some people set up a trust but never move their bank accounts into it. If the trust doesn’t own the account, the trustee won’t have authority to access it.

2. Set Up a Durable Power of Attorney (POA) and Include Account Information

   • A trust alone doesn’t always cover financial decisions during incapacity. A POA allows a trusted person to handle finances if you can’t. Make sure your POA includes details about your financial accounts to ensure access when needed.

3. Know Your Bank’s Rules

   • Many banks won’t accept a general POA and require their own internal forms. If you assume a POA or trust is enough, you may be in for a surprise.

4. Use Payable-on-Death (POD) and Transfer-on-Death (TOD) Designations

   • These designations allow accounts to pass directly to a named person without going through a trust or probate. This can provide backup access.

5. Keep a Secure Inventory of Accounts in Your Digital Estate Plan

   • If no one knows where your accounts are, they can’t access them. Digital estate planning helps track financial, online, and subscription accounts so nothing is lost. Your digital estate plan should document account details, access instructions, and relevant designations.

6. Review and Update Documents Regularly

   • Estate plans aren’t set-it-and-forget-it. Laws change. Bank policies change. What worked five years ago may not work today.

Where Digital Estate Planning Fits In

Traditional estate planning handles the legal side. Digital estate planning helps organize and document your financial and online presence so loved ones don’t struggle when access is needed. It ensures key accounts aren’t overlooked, access is planned for, and the right people have the information they need when they need it.

If you’re relying on a will or trust alone, it’s time to rethink your approach. Digital estate planning doesn’t replace traditional estate planning but strengthens it. Without it, even the best will or trust can leave gaps.

Have you reviewed your accounts lately? If not, now is the time.