The Importance of Account Access

Table of Contents

Managing your finances is not just about knowing where your money is. It is also about ensuring that you or the right people can access your accounts when needed. Without proper planning, locked or inaccessible accounts can lead to unnecessary stress, financial hardship, and even legal complications.

1: Avoid Financial Disruptions

If you become unable to access your accounts due to illness, incapacity, or a lost password, essential payments could be missed. This can result in late fees, service interruptions, or even credit damage. Ensuring account access means that bills are paid on time and financial obligations are met without unnecessary delays.

2: Prevent Legal and Administrative Hassles

When someone passes away or becomes incapacitated, family members often struggle to access financial accounts. Without proper permissions in place, they may face lengthy legal processes, including probate court, just to gain access to essential funds. Advanced planning helps loved ones avoid these difficulties.

3: Ensure Smooth Household Financial Management

In many households, one person may manage the finances while the other is less involved. If the primary financial manager is suddenly unable to access accounts, the household may struggle to cover expenses. A clear system for account access ensures that both partners or trusted individuals can step in when necessary.

4: Protect Against Forgotten or Locked Accounts

As more financial services move online, it is easy to lose track of login details. Forgotten passwords, outdated recovery emails, and locked accounts can cause delays in accessing funds or making payments. Keeping account information organized and secure helps prevent these common issues.

5: Plan for Unexpected Situations

Life is unpredictable. Accidents, sudden illnesses, or emergencies can happen at any time. Having a plan in place for account access ensures that a trusted person can step in to manage finances and maintain stability during difficult times.

Having a plan for account access is essential for both everyday financial management and unexpected situations. While some accounts should remain private, others may need to be shared with trusted individuals under specific circumstances. Understanding who should have access and when they should have it ensures financial stability while maintaining security.

1: Your Own Access – Keeping Yourself Organized

Before considering who else may need access, it is important to ensure you can easily access your own financial accounts when needed.

• Keep a list of all financial accounts in a secure place.
• Store login credentials in a password manager or a secure document.
• Set up account recovery options to prevent lockouts.

Being proactive about your own access helps prevent unnecessary stress and financial disruptions.

2: Spouse or Partner – Managing Shared Finances

If you share financial responsibilities with a spouse or partner, they may need access to:

• Joint bank accounts to pay bills or transfer funds.
• Credit card accounts to track spending and make payments.
• Utility and household bills to manage payments and service providers.
• Insurance policies and retirement accounts for long-term planning.

Decide whether your partner should have full access or only limited access to certain accounts based on your financial setup.

3: Trusted Family Member or Friend – Emergency Access

A trusted individual, such as an adult child, sibling, or close friend, may need access in case of an emergency. This is especially important for:

• Medical emergencies where someone may need to access funds for your care.
• Periods of incapacity where bills and expenses still need to be managed.
• After death to ensure financial affairs are handled smoothly.

Providing read-only access or sharing key account information in a secure way ensures they can assist if needed without unnecessary risks.

4: Executor or Legal Representative – Handling Accounts After Death

If you pass away, someone will need access to your financial accounts to manage your estate. This may include:

• Bank and investment accounts to settle outstanding bills and distribute assets.
• Credit accounts and loans to prevent missed payments and financial complications.
• Digital accounts to manage subscriptions, online banking, and digital assets.

Naming an executor in your will and ensuring they have the proper legal authority can prevent delays and complications.

5: Power of Attorney – Managing Finances if You Become Incapacitated

A financial power of attorney (POA) allows a trusted person to make financial decisions on your behalf if you are unable to do so. This can be crucial for:

• Long-term illness or disability when you cannot manage accounts yourself.
• Temporary incapacity after an accident or medical procedure.
• End-of-life planning to ensure bills and expenses are handled smoothly.

A POA should be someone you fully trust, as they will have control over financial decisions.

When Should You Grant Access?

• Immediate access: For joint account holders or spouses who manage finances together.
• Limited access for specific situations: Trusted individuals who only need access in emergencies.
• After death or incapacity: Executors and POAs who manage financial affairs when you are unable to do so.

Ensuring trusted individuals can access your financial accounts requires more than just sharing login details. They must also have the legal authority to act when needed. Without proper legal access, even a spouse or close family member may face delays, legal hurdles, or financial complications.

1: Know Where and How to Access Accounts

Account access starts with organizing and securely storing key information. Trusted individuals should know:

• Where to find banking and investment accounts, credit cards, insurance policies, and online payment platforms
• How to access usernames and passwords securely using a password manager or encrypted file
• Who to contact at financial institutions in case of an emergency

Storing this information in a secure but accessible way ensures the right people can step in when needed.

2: Ensure Legal Access When Necessary

Having account details is not enough. Many financial institutions will not allow someone to manage your finances unless they have legal authority or have been expressly granted permission on file with the organization. Without proper authorization, even close family members may face delays or be denied access altogether. The type of access someone needs depends on whether they are managing your finances while you are alive or after you pass away:

• Power of Attorney (POA): Grants someone the ability to manage financial affairs while you are alive but ends at death.
• Executor of an Estate: Handles financial matters after death but cannot act while you are alive.
• Joint Account Holders and Authorized Users: May be able to access funds immediately, depending on account setup.
• Beneficiaries: Can claim accounts after death but do not have access before then.

If you have not formally designated access, even close family members may struggle to manage accounts when needed.

3: Use the Ask Three Questions Framework

To ensure your financial accounts are properly managed now and after you pass away, use the Ask Three Questions approach. By documenting these answers, you streamline estate transitions, prevent lost benefits, and reduce confusion for heirs.

1. What will happen to this account and/or policy when I pass away?
2. Who is authorized to access and communicate with the institution regarding this account and/or policy when I pass away?
3. What benefits or entitlements will be available to my designated beneficiaries when I pass away?

As more financial management moves online, securing your digital accounts is just as important as ensuring the right people can access them when needed. Without proper security, you risk unauthorized access, fraud, or even losing control of important financial accounts. Following best practices for digital account security helps protect your information while allowing trusted individuals to assist you when necessary.

1: Use Strong and Unique Passwords

Weak or reused passwords make it easier for hackers to access your accounts. Strengthen your security by:

• Using unique passwords for each financial account.
• Creating longer passwords with a mix of letters, numbers, and symbols.
• Avoiding easily guessed passwords, such as birthdays or common words.
• Consider using a password manager to securely store and generate strong passwords.

2: Enable Multi-Factor Authentication (MFA)

Multi-factor authentication adds an extra layer of protection by requiring a second verification step, such as:

• A one-time code sent to your phone or email.
• A biometric login like fingerprint or facial recognition.
• A security key or authentication app for high-security accounts.
• Enable MFA for all financial accounts and email accounts linked to banking or investment services.

3: Securely Store and Share Login Information

While it is important to keep login credentials private, you should also ensure that a trusted person can access them if needed.

• Use a password manager that allows emergency access for a designated individual.
• Store a securely encrypted digital document with account access details.
• Keep a printed record in a fireproof safe as a backup.
• Only share login details with someone you fully trust, and regularly update stored information.

If no one can access your financial accounts when needed, it can create unnecessary stress, financial hardship, and legal complications for your loved ones. Whether due to lost passwords, strict security policies, or missing legal authority, a lack of access can delay important financial decisions and even result in money being lost.

1: Bills and Financial Obligations May Go Unpaid

If no one has access to your bank accounts, essential bills such as rent or mortgage payments, utilities, and insurance premiums may go unpaid. This can lead to:

• Late fees, penalties, and service disruptions.
• Damage to your credit score.
• Risk of eviction, foreclosure, or lapses in insurance coverage.
• Without a plan for account access, loved ones may struggle to cover costs or face unnecessary financial burdens.

2: Funds May Become Inaccessible or Lost

Many financial institutions will not allow someone to access an account unless they are a joint account holder, power of attorney, or executor of the estate. If access has not been set up:

• Bank accounts may be frozen, preventing payments or withdrawals.
• Investment and retirement funds may be delayed, affecting long-term financial stability.
• Digital payment platforms like PayPal or Venmo may become locked, making it difficult to recover funds.
• If no legal access exists, loved ones may need to go through a lengthy legal process to access or transfer funds.

3: Probate Can Delay Account Resolution

If no one is legally authorized to access your accounts after you pass away, the funds may have to go through probate, a court-supervised process that distributes assets. This can result in:

• Months or even years of delays before beneficiaries can access funds.
• Increased legal fees and court costs for the estate.
• Unclaimed assets if heirs do not know the accounts exist.
• Avoiding probate by ensuring proper access and beneficiary designations can help prevent these issues.

To avoid the potential aforementioned complications, take proactive steps:

• Designate trusted individuals as joint account holders, beneficiaries, or authorized users.
• Set up Power of Attorney (POA) for financial matters if you become incapacitated.
• Ensure your executor has the necessary legal authority to manage accounts after death.
• Use a password manager or secure document to store account login details for emergencies.
• Inform your trusted contacts about where key financial and legal documents are stored.

Unclaimed property refers to financial assets that have been forgotten, abandoned, or left inactive for an extended period. These assets often include bank accounts, insurance payouts, refunds, and investment funds that owners or heirs never claimed. Billions of dollars in unclaimed property sit with state governments and financial institutions, waiting for rightful owners to claim them.

1: What is Considered Unclaimed Property?

Unclaimed property includes a variety of financial assets that have been inactive, abandoned, or forgotten due to moves, name changes, or unawareness of an account’s existence. Some common types include:

• Dormant Bank Accounts: Checking and savings accounts left inactive for years.
• Uncashed Checks and Refunds: Paychecks, security deposits, insurance refunds, and vendor overpayments that were never deposited.
• Stocks, Bonds, and Dividends: Investment accounts or earnings that remain unclaimed.
• Life Insurance Payouts: Benefits from policies where the beneficiary was never notified.
• Safe Deposit Box Contents: Banks may turn over abandoned valuables to the state if the owner cannot be located.
• Utility and Rental Deposits: Refundable security deposits that were never collected.

These assets do not disappear. Instead, they are turned over to state unclaimed property divisions, where they remain until claimed by the rightful owner or heir.

2: How Does Property Become Unclaimed?

Financial institutions and businesses are required by law to turn over unclaimed funds to the state after a dormancy period, usually between 1 and 5 years. Property often becomes unclaimed due to:

• A change of address without updating financial institutions.
• A name change (such as after marriage or divorce) that does not match account records.
• Failure to cash checks or claim refunds.
• Forgetting about old accounts or employer benefits.
• Lack of awareness of insurance policies or investments left by a relative.

3: How to Search for Unclaimed Property

It is easy to check if you or a family member have unclaimed property. Each state maintains its own database of unclaimed funds, and several national resources can help with searches.

Buried in Work maintains a free database of all federal and state unclaimed property resources to help individuals locate and claim lost assets. Visit the Unclaimed Property Information Hub to start searching.

Managing financial accounts requires keeping track of multiple usernames, passwords, and security questions. A password manager helps streamline this process by securely storing login information while keeping accounts protected from unauthorized access. Using a password manager ensures that trusted individuals can access critical accounts when needed without compromising security.

1: What is a Password Manager?

A password manager is a secure tool that:

• Stores and encrypts passwords for all your accounts in one place.
• Automatically fills in login credentials when needed.
• Generates strong, unique passwords to enhance security.
• Allows trusted individuals to access your accounts in an emergency.

By using a password manager, you no longer need to remember dozens of passwords or write them down in unsecured locations.

2: How a Password Manager Improves Security

Many people reuse passwords or use simple variations that are easy to guess. A password manager strengthens security by:

• Creating complex passwords that are difficult for hackers to crack.
• Preventing password reuse across multiple accounts, reducing the risk of breaches.
• Protecting against phishing attacks by only autofilling login credentials on legitimate websites.

Using a password manager is one of the most effective ways to safeguard online accounts while maintaining ease of access.

3: Granting Emergency Access with a Password Manager

Some password managers allow you to designate a trusted person who can access your accounts in an emergency. This ensures that:

• A spouse, executor, or Power of Attorney can access important accounts when necessary.
• Accounts are not locked or lost due to forgotten passwords or incapacity.
• Beneficiaries can quickly manage digital assets without legal delays.

By setting up emergency access, you provide a secure way for the right person to assist with account management when needed.

4: Choosing the Right Password Manager

When selecting a password manager, look for:

• End-to-end encryption to keep stored data private and secure.
• Multi-device access so you can retrieve passwords from a phone, tablet, or computer.
• Emergency access options for trusted contacts.
• Secure password sharing features that allow you to give access to specific accounts without revealing full login details.

Buried in Work recommends 1Password, which offers strong security features and emergency access options.