Facebook's New "Legacy Contact"

Facebook just announced a new setting that will give every user to the option to appoint a “legacy contact” for their Facebook account after they die.   In the past, when a Facebook user passed away, the account would be closed or “memorialized.” Facebook also now allows users to set their account up so that it is permanently deleted should they die.

A “legacy contact” is someone you choose to look after your account after it has been memorialized. Once your account is memorialized, your legacy contact will be able to:

• Update the deceased’s user’s profile picture and cover photo
• Write a special post that will be pinned to the top of his or her timeline (ex: a memorial service announcement or final message on behalf of the deceased user)
• Respond to new friend requests
• The option to download an archive of the photos, posts, wall posts, event’s and profile info the deceased had already shared on the site

The legacy contact will not be able to:

• Log into the deceased’s user’s account
• View or download the deceased’s past messages.
• Change photos, postings or other items shared on the decedent’s timeline
• Remove friends of the deceased user

Instructions for how to add, change, or remove a legacy contact are available here: https://www.facebook.com/help/1070665206293088. Your legacy contact must be an existing Facebook friend of yours.

After a Facebook user dies, if a legacy contact has been appointed, first the deceased user’s account should be memorialized. A family member or friend can submit the request to memorialize the decedent’s account using the following link: https://www.facebook.com/help/contact/651319028315841. After the decedent’s account is memorialized, Facebook will notify the legacy contact. Although the legacy contact cannot log into the deceased user’s account, the legacy contact can go to the deceased user’s memorialized profile and click on the “manage” link in the bottom right of the cover photo, and have the option to complete any of the steps and actions we listed above.

If you would prefer to permanently delete your Facebook account should you die, directions are available here: https://www.facebook.com/help/103897939701143.

What Happens to Your Debt After You Die?

Do you have any kind of debt? If so, you may want to consider what will happen to that debt if you die before paying it off. Many people avoid this topic, but it’s important to understand just what can happen to those bills when you’re gone.

Who’s Responsible?

When you die, your debts may or may not pass on to other people, depending on the type of debt you held.

• Single Signer
• When you are the only person who took on the debt, no one else will be responsible for it.
• Your assets will be used against the debt. These could include:
• Your share of a house if you co-own.
• Property and vehicles.
• Any bank accounts.
• Co-Signers/ Joint Account Holders
• Anyone who co-signed for a loan or is a joint account owner with you will be responsible for all future payments in the event of your death.
• Commonly co-signed accounts include:
• Student loans
• Student credit cards
• Mortgages
• Authorized User
• An authorized user may use the credit holder’s account, but is not legally obligated to pay the debt.
• In the event of your death, any authorized users must stop using the account.

How Debts Are Paid Post-Mortem

Just because you are gone and no one else is responsible for your debts doesn’t mean the banks and credit card companies will go unpaid. Here’s what happens:

• Your assets are evaluated.
• Debts are prioritized and paid off using the assets from your estate. This will usually be similar to the following, but will vary by state:
• Funeral costs
• Legal fees
• Court fees
• Credit cards

Leaving an Inheritance: Is It Worth It?

What about property and items left to your family and friends? What will happen to these when you die?

• If there is still money owed, the person inheriting the property will usually have a choice:
• Sell the property to pay the debt.
• Pay the debt in order to keep the property.

Community Property

Some states have "community property" laws, which change the game.

• Which States are Community Property States? 

• Alaska.
• Arizona.
• California.
• Idaho.
• Louisiana.
• Nevada.
• New Mexico.
• Texas.
• Washington.
• Wisconsin.

• Community property laws can affect how certain debts are treated and can have differing tax consequences for property upon death of a co-owner. .
• Talk to a lawyer to find out just what happens after death if you live in a community property state.

Preparation can be key to avoiding problems after your death. You can structure and separate accounts to avoid leaving family or friends with your debts and make sure to stay on top of things when possible. Many sources recommend using a lawyer when doing your estate planning to make sure you haven’t left any loose ends.