Digital Assets and Probate: Managing Online Accounts and Electronic Records
- Posted on: Sep 2 2024
As our lives become increasingly digital, the assets we accumulate are no longer limited to physical property or financial accounts. Digital assets—such as online bank accounts, social media profiles, email accounts, and cryptocurrency—are now integral parts of our estates.
Managing these assets during the probate process presents unique challenges. Here’s what to know about the management of digital assets and electronic records concerning probate.
What Are Digital Assets?
Digital assets include any information or data stored electronically that has value. This can encompass a wide range of items, including:
- Online Financial Accounts
- Cryptocurrency
- Social Media Profiles
- Email Accounts
- Digital Media (e.g., photos, videos, etc.)
- Online Businesses (e.g., websites, blogs, etc.)
The Importance of Planning for Digital Assets
Unlike physical assets, digital assets can be difficult to access after a person’s death, especially if no clear instructions or access details have been provided. Many online platforms have strict privacy policies, and without the correct login information, accessing these accounts can be challenging, if not impossible, for executors and heirs.
Including Digital Assets in Your Estate Plan
To ensure your digital assets are properly managed after your death, it’s crucial to include them in your estate plan. This can be done by:
1. Creating a Digital Asset Inventory
List all your digital assets, including usernames, passwords, and security questions. This inventory should be kept in a secure location, such as a safe deposit box, or managed through a digital asset management service.
2. Designating a Digital Executor
Appoint someone you trust to manage your digital assets after your death. This person may or may not be the same as the executor of your will, depending on their familiarity with digital technology.
3. Providing Detailed Instructions
Specify how you want your digital assets to be handled. For instance, you may wish for certain accounts to be closed, social media profiles to be memorialized, or digital funds to be transferred to a specific heir.
Legal Considerations in California
In California, digital assets are treated similarly to other forms of personal property during the probate process. However, the laws governing digital assets can be complex, and not all online platforms allow for the easy transfer of accounts after death. California’s Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) gives fiduciaries the legal authority to manage a deceased person’s digital assets, but this power is often limited by the terms of service agreements of the online platforms.
Having a well-crafted estate plan that addresses the management of digital assets as well as working with an attorney experienced in probate and digital estate planning are imperative.
Steps for Managing Digital Assets During Probate
If you are the executor of an estate, managing digital assets involves several key steps:
- Locating and securing digital assets
- Notifying relevant parties:
- Following the decedent’s wishes
If no instructions are available, manage the assets in a way that aligns with the estate’s best interests and legal requirements.
The Law Offices of Brian L. Fox, APLC Help those in CA with their Estate Plan
As digital assets continue to play a larger role in our lives, it’s increasingly important to address them in your estate planning. Proper management of these assets during probate ensures that your online presence and digital wealth are handled according to your wishes and that your loved ones are spared the challenges of navigating these complexities without guidance.
At the Law Offices of Brian L. Fox, APLC, our compassionate and experienced team will guide you through each step of the process, ensuring that your best interests are always prioritized. Contact us today to schedule a consultation and learn more about how we can assist you with your comprehensive estate plan.
Posted in: Estate Planning