How to be sure heirs don't lose valuable assets?

Instructions for disposition of web site/domain names

[grayhair]

I'm the only one that knows the details and potential value of my websites/domains. In the event of my death or incapacitation, they would not be maintained and would disappear in their original intent/purpose.

Although I plan to be around for quite a while and am working on a plan for dispostion of them, you just never know.

I need advice on the things my heirs should know, who (generically) they can get help from, where, when, what they need to do or not do, etc.

The heirs are computer users, mostly game playing or shopping, not developers or programmers.

Thanks.

[MrHard]

Try getting someone else involved in what you are doing now. This would be the first step in someone stepping in and taking over if needed.

If nobody's interested, then what you have would become part of your estate and just like anything else can be willed over by you. Here are the passwords, the customer is always wrong, etc. It will become something entirely different in their hands, but having the system and basics down will save them an incredible amount of time.

If it's not willed, then a lawyer would take control and probably sell these assets for what they could get, deduct your debts, and give the remainder to your next of kin.

[JS_Harris]

Consider this.

If your websites generate income from several sources and you die those sources will stop paying that income and will likely close your accounts. At that point your next of kin would be tasked with trying to re-open those accounts in their name or open different accounts and replace all your ads with new ones, a major headache.

Solutions:

#1 - Register a fictitious business name with a loved one and submit your business identity to the affiliate companies you work with. This way your company gets paid, not you. There are tax implications.

#2 - Register a fictitious business name alone and register the business as the payee for your ad revenue. Will the company to a loved one, the payments won't stop. There are tax implications.

#3 - show a loved one the ropes on where you get money from, how you implement ads and provide them with a list of passowrds and account names. Leave the "guide, passwords etc" in trust until you pass away.

Just because the sites make you money doesn't mean that you can will the affiliate relationships you have to your loved ones, those companies work with you and pay you, not your loved ones. Imagine not knowing how to create a site and not having a clue how it made money to start with, not good.

[piatkow]

The reverse issue is where web sites stay in place for years after death or incapacity of the webmaster because fees are prepaid and the heirs either don't know about them or assume that they are valueless.

[MrHard]

web sites stay in place for years after death or incapacity of the webmaster

Sorry, we can't come to the phone right now, please leave a detailed message and someone will get back to you as soon as possible.

[ken_b]

Here are a couple of older threads about such things...

Hit by a Bus
[webmasterworld.com...]

Planning for Business Continuity
[webmasterworld.com...]

[thecoalman]

I have instructions, passwords and everything else they need to know in an encrypted file. I've made a trusted relative aware of where this file is, and how to open it.

He's on his own from there, what do I care.. I'll be dead.

[grayhair]

Thanks all for the info, advice and links. I read through all the threads.

The threads are several years old. Does anyone know if there are any reputable transition companies now as talked about?

I would like to leave my main site and its tangible assets (books/emphemera) as well as my interconnected-themed domain names to a university, library or non-profit that would provide some residual income or lump sum to my heirs. There has been a significant resurgence of interest recently in the subject matter and the tangible assets are unique and valuable resources.

How does one go about finding out the steps to take to do this? What terms do I Google? How do you get a real appraisal of a site's worth based on potential rather than just using a calculator for current earnings?

[nomis5]

I've thought about this a lot and still haven't nailed it down. The main problem I see is that you first need to make sure the ownership of the websites goes to your chosen person(s) after your death. If you are married and leave all to your spouse then you're presumably sorted if your will leaves all to your spouse.

But if you are not married then you need to be extra careful about the wording of the will.

Then comes the potential problem of the value of the websites. If you might be due to pay death taxes then who and how will the websites be valued? I wouldn't trust the tax authorities to make a proper valuation. They might value it as per a normal business, say 8 times annual profit. In truth, it might be worth that much but it would never sell on the open market at anywhere near that multiplier. One times or may two the annual profit is more likely.

Advice to your heirs might be to "trial" sell the websites on something like Sitepoint. This will give some indication of how much they might sell for on the open market.This could then be used to challenge the tax authorities if their valuation is excessive.

I suppose that there is a real opportunity for some organisation, possibly even Webmasterworld, to market a service to the likes of us, that would ensure our "heirs" are properly advised on what to do with a website(s) in the event of our death. There are very few alternatives. In my case I have advised my heirs to force a sale on the open market and make sure that they then buy my websites. I have a partner on one website who is website savvy and advised them to talk to him about a partnership to maintain the websites.

It's a real minefield though and maybe we have to accept that on our death, we cannot pass on the true worth of our websites.