Probate and digital assets are increasingly important topics as more of our lives move online. Here’s what you need to know about managing digital assets during the probate process:
1. What Are Digital Assets?
Digital assets include any online accounts, files, or property that have value, either financial or sentimental. Examples include:
- Financial accounts: Online banking, PayPal, cryptocurrency wallets, investment accounts.
- Social media: Facebook, Instagram, Twitter, LinkedIn.
- Email accounts: Gmail, Yahoo, Outlook.
- Digital files: Photos, videos, documents stored in cloud services like Google Drive or Dropbox.
- Subscriptions: Netflix, Spotify, software licenses.
- E-commerce accounts: Amazon, eBay, Etsy.
- Domains and websites: Personal blogs, business websites.
2. Why Digital Assets Matter in Probate
Digital assets are part of your estate, just like physical assets. However, they can be overlooked during probate because they are not tangible. Failing to address digital assets can lead to:
- Loss of access to important accounts or files.
- Unclaimed financial assets.
- Identity theft or unauthorized access to sensitive information.
3. Challenges in Managing Digital Assets
- Access Issues: Without passwords or legal authority, executors may struggle to access accounts.
- Terms of Service Agreements: Many platforms restrict access to accounts after the owner’s death, even for executors.
- Lack of Documentation: If digital assets are not listed in the estate plan, they may be forgotten.
4. Steps to Include Digital Assets in Your Estate Plan
To ensure your digital assets are handled properly during probate:
- Inventory Your Digital Assets: Create a list of all your online accounts, including usernames, passwords, and instructions for each.
- Use a Password Manager: Store login information securely and share access with a trusted person.
- Appoint a Digital Executor: Designate someone to manage your digital assets after your death.
- Include Digital Assets in Your Will: Specify how you want your digital assets handled (e.g., deleted, transferred, or memorialized).
- Check Platform Policies: Understand the policies of platforms you use (e.g., Facebook’s legacy contact feature).
5. Legal Considerations
- Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA): Many states have adopted this law, which allows executors to access digital assets if the deceased person consented in their will, trust, or power of attorney.
- Privacy Laws: Some platforms may require a court order to release account information, even to executors.
6. Practical Tips for Executors
- Gather Documentation: Obtain a death certificate and legal documents proving your authority as executor.
- Contact Service Providers: Reach out to platforms to request access or closure of accounts.
- Secure Accounts: Change passwords and enable two-factor authentication to protect accounts during the probate process.
- Distribute or Close Accounts: Follow the deceased’s wishes for each digital asset, whether it’s transferring ownership, deleting accounts, or memorializing them.
7. Special Considerations for Cryptocurrency
Cryptocurrency is a unique digital asset because it is decentralized and requires private keys for access. To ensure it is not lost:
- Store private keys in a secure location (e.g., a hardware wallet or safe).
- Provide instructions for accessing and transferring cryptocurrency in your estate plan.
8. Seek Professional Help
Probate and digital assets can be complex. Consider consulting an estate planning attorney or probate professional to ensure your digital assets are properly managed.
By addressing digital assets in your estate plan, you can protect your online legacy and make the probate process smoother for your loved ones.
