Guest Blog:
What Happens to Digital Assets When You Pass Away?
Written By: Attorney Paul B. Margerie, Margerie Law, LLC
In today’s world, our lives are full of online accounts and digital assets – from cherished family photos stored in the cloud to financial records accessible with just a few clicks. As an estate planning attorney, I’ve witnessed firsthand the challenges families face when these digital assets are not included in estate plans. In this blog, we go into the importance of protecting your digital legacy and provide practical guidance to ensure your digital presence is managed no matter what happens.
Understanding Digital Assets
First, let’s define what we mean by digital assets. These are any online accounts or electronic records that have monetary or sentimental value. Think social media profiles, emails, websites, digital photos and videos, cryptocurrency, online bank and investment accounts and more. Essentially, anything that exists solely in a digital form and can be accessed or transferred online can be considered a digital asset and should be included in your estate plan.
The Legal Landscape – What Happens to My Web Assets?
There is currently no comprehensive federal law governing the transfer of digital assets after a person’s death. Instead, legislation addressing this issue varies from state to state. Some states have enacted laws specific to digital assets, while others rely on existing probate and estate laws to govern their transfer.
One significant piece of legislation related to digital assets is the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA). This act, which has been adopted by most states, outlines procedures for fiduciaries such as executors or trustees to access and manage a person’s digital assets after their death.
However, even with this legislation in place, the policies and procedures of individual companies can often complicate the process. Many companies have their own terms of service agreements that decide what happens to an account in the event of a user’s death. It can vary from allowing someone to access and manage the account to completely deleting it upon notification of the user’s passing.
The Importance of Digital Estate Planning
Given the complex legal landscape surrounding digital assets, it’s essential to include them in your estate planning process. While it may be uncomfortable to think about what happens to our online presence after we’re gone, including digital assets in your estate plan can bring peace of mind and make things easier for your loved ones.
5 Steps to Manage Your Digital Assets
Here’s how to get started on protecting your digital accounts:
- Inventory Your Digital Assets – The first step is to create an inventory of all your digital assets. This list should include login information, usernames and passwords for each account.
- Choose a Digital Executor – Just like you would appoint an executor for your physical estate, it’s important to choose someone trustworthy and knowledgeable to handle your digital assets and accounts after you pass away.
- Include Digital Assets in Your Will or Trust – You can specifically address how you want your digital assets managed in your will or trust. Should they be deleted or transferred to a loved one? It’s essential to provide clear instructions for your executor or trustee.
- Utilize Online Tools – Some online tools allow you to store your login information and instructions for managing your digital assets after your death. These can be a useful supplement to including them in your estate plan.
- Communicate Your Wishes – It’s crucial to communicate with loved ones about what you want to happen to your digital assets. This ensures that they are aware of your wishes and can follow through on them.
Advice from an Estate Planning Attorney
As an estate planning attorney, I always recommend including digital assets in your estate plan for peace of mind and protection. You should also review and update your digital asset inventory regularly as you acquire new accounts or change passwords.
By including digital assets in your estate plan, you can ensure our loved ones are not left with unnecessary complications and uncertainties during an already difficult time. So take the time to plan for your digital assets today, and you can rest easy knowing your digital legacy will be managed according to your wishes.