If you don’t have a continuity plan, now is the time to develop one.
Every domain name investor should have a plan. Not a plan they hope to enact themselves, nor a plan that they hope is put to use anytime soon. They need a plan that their loved ones can use should something happen to them.
Over the years, we’ve seen beloved domain investors die, often way before their time. In addition to dealing with loss, their families have to figure out what to do with one of their biggest assets: domain names.
Domain names aren’t like other assets; they are illiquid and little-understood by the general public.
That’s why all domain name investors should have a continuity plan in place for whoever will deal with their domain name portfolio when they pass.
The Covid-19 pandemic is a reminder that any of us could have an untimely death. It’s a morbid topic, but one to think about.
I set up continuity plans for each of my businesses and share them with my wife. It’s been a long time since I’ve updated these plans, and the pandemic was enough to nudge me into action. These continuity plans will help my wife if I die, and also help if I’m not able to run my businesses for a few weeks.
The plans include:
- Information on my business bank accounts
- Contact details for our accountant and web developer
- Information about other key accounts, such as hosting services and payroll accounts
Specific to domain investors, my continuity plan lists people that my wife should call should I die. It doesn’t make sense for me to burden her with details about all of my domains and what to do with them. Instead, I instruct her to contact specific people who can help her sort through this. For my domains, this includes trusted contacts at GoDaddy as well as a couple of people in the domain industry that I trust immensely. I also recommend who my wife should contact for assistance selling Domain Name Wire.
If you have a very valuable portfolio, listen to this podcast to understand some estate planning you should undertake.
I also walk my wife through the plan so she can ask questions. I’m sure I’ve forgotten about things that will be important to know.
A best practice is to do these plans on paper rather than saving them to a computer that can be hacked. Store your plan in a safe or safe deposit box at your bank.
This isn’t a fun thing to think about, but now is a good time to create or update your plan. Use the extra time you have stuck at home to develop your continuity plan. And let’s hope you never need to use it.
David Yang says
Thanks for your article. This is a significant inavoid topic. Smart men must be alive well. Many good opportunities will be upcoming.
Page Howe says
And i’d ad getting and paying up a 10 year term policy for 10-25-50k so the money is there within days for your trusted helpers to mind the accounts and renewals.
always hard to mix life insurance proceeds between personal and business, so ive found having one just renewals and compensation for a manager makes sense
Page
Andrew Allemann says
Life insurance is cheap if you’re a healthy, younger person. You can get $1M+ for about $500/year. Everyone who isn’t independently wealthy should have a policy. Good point.
Jose says
Andrew, thank you for this article, I was planning to do something too and I wanted to ask a lawyer because I did not know how this should be done, that your writing CONTINUITY PLANNING I can write this as you do, you have to register it to be sure for the person who will inherit, do you know any lawyer who does this, I ask him because I live in Spain (EU) and here everything is done by an official notary and they do not know any of this in relation to domains.
Steve says
Great advice Andrew. That said, an estate plan draw up by a specialist attorney is the only way to go. And in order to address the unthinkable event of both husband and wife dying at the same — or nearly the same — time, additional layers of family / trusted people need to be included in such a plan. Ideally including one or more such folks who are in one or more widely divergent geographic locations from where you live / work. A catastrophe like an earthquake, hurricane, or war (or pandemic) could quickly wipe out an entire family. And yes, any and all high-value domains should be kept renewed for 10 years.
Andrew Allemann says
Excellent points. I agree, you should hire a lawyer to draft an estate plan. I also like the idea of giving a second trusted person access to the continuity plans.
Jose says
What attorneys can do this in the US if you know of any please use my subscription email to submit their response.
Good weekend and everyone to take care of your health.
Andrew Allemann says
I would recommend using one in your own state because states have different rules. Ask friends and neighbors for recommendations.
Jose says
Thank you. I do not live in the US, living in Spain (EU), a lawyer in your country would be the one to write inheritances as an example? if this were I already know one in Barcelona, the city where I worked for years.