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Information Secure & At Your Fingertips: Why A Digital Safe Deposit Box is a Great Idea

Cyber Security Lifestyle Estate Planning

Over the past few months have you found yourself needing to reference an important document, but you can’t remember exactly where it is or can’t seem to recall the password you made months ago?  Most of your financial and estate planning information is housed with various firms behind a password protected website. Would your loved ones be able to access this information if they needed to? Would they be able to access the information on your phone?

In today’s evolving world, more and more people are opting for the convenience and accessibility of a digital safe deposit box. A digital safe deposit box is a virtual, secure archive in which you can place digital copies of anything you want. Unlike the physical constraints of a bank box, most digital safe deposit boxes offer unlimited storage. This allows users to store anything from treasured photos to personal documents. By keeping these documents in your digital safe deposit box, you will have peace of mind knowing that your documents are easily accessible in one convenient location. Please see some software recommendations at the end of this article.

What you choose to keep in your digital safe deposit box is a personal choice, although it’s typically used for important health and financial documents, password storage, and sentimental items.

You may want to consider storing items including:

  1. Driver’s License
  2. Passport
  3. Birth Certificate
  4. Marriage License
  5. Health Insurance Card
  6. Insurance policies
  7. Tax Returns
  8. Investment and Bank Account statements
  9. Estate Planning Documents
  10. Passwords
  11. Legacy Contact information

Many people store personal and financial data on their iCloud and Google accounts, making it challenging for family or friends to access this information after their death. Apple and Android have introduced the Legacy Contact feature, allowing users to designate individuals who can access their iCloud or Google data posthumously. This allows a trusted person to access important information like photos, messages, and documents.  Apple users can choose multiple Legacy Contacts, but if they are not an Apple user, you will need to provide them with a copy of the access key. For estate planning purposes, we recommend that you choose your appointed personal representative from your will as your Legacy Contact and keep your access keys and passwords in your digital safe deposit box.  If you are an Apple user you can learn more here. If you are an Android/Google user you can learn more here.

If you’re about to embark on this project, you’ll need to retain some documents in their original form, but what about the rest? How do you dispose of them safely while protecting your personal information? Some types of paperwork should be shredded to keep your information from falling into the wrong hands. Some shredder-bound paperwork includes:

  1. Anything With Your Social Security Number A social security number can be used by others to seek out credit, obtain employment, or secure housing under your name.
  2. Anything With an Account Number Even a portion of an account number should end up in the shredder.  These documents often have other pieces of identifying information, such as full name and address. Combined with the partial account number, a skilled identity thief is off to a good start. Most of us can retrieve statements online.
  3. Mail With Significant Amounts of Personal Information The more personal information on a piece of paperwork the riskier it is to keep it intact.  This also includes medical bills and records that you do not need. Some bills and forms provide a lot of information about medical conditions and prescriptions that you would probably want to remain private. 
  4. Photos of You or Family Members Not only can your photos be used to perpetrate identity theft, but they can also be used for other malicious purposes. To raise money on crowdfunding sites many people have used photos of other people's children to solicit donations or to make fake social media profiles.
  5. Junk Mail Yes, believe it or not, junk mail can contain a significant amount of personal information that identity thieves would love to gain possession of.


Once you’ve narrowed down what you need to keep, it’s time to get started scanning.  The following are some simple tips for digitizing your important documents:

  1. Save everything in .pdf format
  2. Keep a back-up It makes sense to create a backup every few months and store it in a fire proof safe.  
  3. Scan items as soon as you receive them You can put off naming and filing them but scan them to a temporary file right away.
  4. Keep everything well organized and consistently named Folders and sub-folders are your friend! Consider adding a date that will organize chronologically for you, like 2024.10.01
  5. Purchase a desktop scanner with an automatic feeder and two-sided scanning The easier you make this on yourself the more likely you will stick to it.  
  6. For most small jobs, try using smartphone scanning apps, such as Adobe Scan, Microsoft Lens Google Drive, or Apple Notes. All are quick, will automatically trim to size the images and “whiten” them nicely. Plus, the apps export the images directly to cloud storage or email.
  7. Document the physical locations of important items Some legal documents, such as a passport, are only valid in their original form. However, you can also use a digital box to record the physical location of items such as your passport, will, bonds, etc. 

A quick note on security: You’ll still need to practice good online precautions, never access your cloud vault from an unsecure Wi-Fi network (airports, coffee shops, hotels).  You can also add a layer of security by password protecting the most sensitive documents that have been saved as a .pdf.  

Some personal document management sites also offer a digital inheritance vault.   This is an internet-based service that allows you to place all the information your loved ones would need in the event of your passing.  Upon your death, the information is released to your beneficiaries.

Secure digital storage vaults or safe deposit boxes have increased in popularity throughout Europe and the U.S. for several years now. Highly secure digital safe deposit boxes are a banking mainstay, just as their analog counterparts have been for centuries.

The transition to digital vaults is something that insurance and banking institutions have embraced. Digital inheritance is a newer, cross-generational advertising tool that is gaining traction.

As part of staying proactive and prepared for the future, it’s important to take the time needed now to organize and identify what you or your loved ones will want access to. Utilize the unlimited storage space of a digital safe deposit box to provide a thorough roadmap for loved ones and preserve precious memories.

For your reference, the following are a few personal document management web sites:

  • Everplans, $99 per year
  • Digital Online Vault, $48 per year
  • CLOCR , pricing options include $475 Lifetime Vault
  • OneDrive Personal Vault, included with Office 365 subscription

 

  1. https://www.irs.gov/businesses/small-businesses-self-employed/how-long-should-i-keep-records

This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.