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Password Manager

Definition

A password manager is a secure application that stores all your online account passwords in one encrypted vault, protected by a single master password you create.

Understanding password managers is crucial for estate planning because your executor needs access to potentially 100+ online accounts—from banking and utilities to email and subscriptions—without compromising security during your lifetime.

What Does Password Manager Mean?

A password manager is software that securely stores and manages your login credentials using encryption technology. The application works across your devices—phone, computer, and tablet—synchronizing an encrypted vault containing your usernames, passwords, payment details, and secure notes. You access everything with one master password, while the password manager automatically generates strong, unique passwords (like "4$xG9#mK2@pL5vN8" instead of "Password123") and fills them in when you visit websites or apps.

This technology solves a critical modern problem: the average person manages over 100 online accounts but cannot possibly remember unique, secure passwords for each one. Password reuse creates vulnerability—one data breach compromises all accounts using that password. Password managers use AES-256 encryption (military-grade security converting your data into unreadable code) with zero-knowledge architecture, meaning the company itself cannot access your passwords even if their servers are breached. When Sarah, a 32-year-old marketing professional, switched to 1Password, she discovered she'd been reusing the same three passwords across 50+ accounts including online banking, utilities, and work platforms—a security risk her password manager immediately solved.

For estate planning, password managers are essential because they enable your executor to access critical accounts after your death without compromising security beforehand. Modern password managers like 1Password, LastPass, Dashlane, and Bitwarden offer emergency access features where you designate trusted individuals (your executor, spouse, or adult child) who can request access after you die. You set a waiting period—typically 7 to 30 days—and if you don't deny the request during that time, they gain automatic access. This solves the Computer Misuse Act 1990 problem: under UK law, accessing someone's accounts without authorization is a criminal offense, even for executors. Emergency access features provide lawful pathways for your executor to close utility accounts, manage banking, cancel subscriptions, and handle your digital legacy without resorting to password guessing or unauthorized access.

Critically, never include your master password in your will. Once probate is granted, your will becomes a public document that anyone can request from the probate registry for a small fee. Including passwords would expose them to anyone who applies for a copy. Instead, store your master password separately—in a sealed envelope with your solicitor, in a safe deposit box, or by relying on your password manager's emergency access features. Your executor must know you use a password manager and how to request access, which is why documenting this in your estate planning discussions (separate from the will itself) is crucial.

Common Questions

"Should I include my password manager master password in my will?" No, never include passwords in your will. After death, your will becomes a public document accessible through probate, exposing passwords to anyone who requests the file. Instead, store your master password separately in a secure location and inform your executor where to find it, or use your password manager's emergency access features.

"How can my executor access my password manager after I die?" Most modern password managers offer emergency access or digital legacy features that allow you to designate trusted individuals who can request access. After a waiting period you set (typically 7-30 days), they gain access automatically unless you deny it. Alternatively, you can leave your master password in a sealed envelope with your solicitor or in a safe.

"Are password managers safe for storing sensitive information?" Yes, reputable password managers are extremely secure, using military-grade encryption (typically AES-256) to protect your data. Your master password never leaves your device, and even if the company's servers are breached, your encrypted data cannot be accessed. Password managers are significantly safer than writing passwords down, storing them in browsers, or reusing the same password across multiple sites.

Common Misconceptions

Myth: "Password managers are risky because all your eggs are in one basket"

Reality: This overlooks that your brain or a password notebook is also "one basket," but far less secure. Reputable password managers use zero-knowledge encryption, meaning even if the company's servers are hacked, your data cannot be decrypted. Multi-factor authentication adds another layer of protection on the master password itself. The alternative—reusing simple passwords across dozens of sites—is exponentially riskier than using an encrypted vault with military-grade security.

Myth: "If I forget my master password, I'll lose everything forever"

Reality: While password manager companies cannot recover a forgotten master password (because they don't know it—that's the security feature), you'll use your master password frequently enough that forgetting it is unlikely. Most services offer account recovery options, emergency access contacts, or encrypted backup configurations you can set up during initial setup. The "unrecoverable password" warning proves the security—if the company could reset your password, they could also access your vault.

  • Digital Assets: Password managers are the primary tool for managing access credentials to your digital assets, enabling executors to administer online accounts.
  • Digital Legacy: Emergency access features in password managers are crucial for implementing your digital legacy plan and enabling executor access after death.
  • Digital Executor: The person appointed to handle your digital assets who needs password manager access to fulfill their responsibilities administering online accounts.
  • Two-Factor Authentication: Password managers store recovery codes and backup authentication methods for accounts protected by two-factor authentication, solving estate access challenges.
  • Cloud Storage: Like password managers, cloud storage requires secure credential management, and password managers provide the secure storage location for these access details.
  • Online Accounts: Password managers organize and secure credentials for all your online accounts, from banking to subscriptions, ensuring executor access.

Need Help with Your Will?

Password managers are essential estate planning tools, but your executor won't know they exist unless you plan properly. Creating a comprehensive will means documenting your digital assets and ensuring executors can access critical accounts after your death.

Create your will with confidence using WUHLD's guided platform. For just £99.99, you'll get your complete, legally binding will plus three expert guides. Preview your will free before paying anything—no credit card required.

Legal Disclaimer:

This article provides general information only and does not constitute legal or financial advice. WUHLD is not a law firm and does not provide legal advice. Laws and guidance change and their application depends on your circumstances. For advice about your situation, consult a qualified solicitor or regulated professional. Unless stated otherwise, information relates to England and Wales.