Estate planning has advanced alongside technological progress, leading to the new issue of digital asset planning. Planning digital access for executors encompasses a range of aspects like preparing an inventory of digital assets, obtaining necessary permissions for access, maintaining updated records, and incorporating such plans into the overall estate plan. Plan carefully and consider privacy issues to alleviate difficulties for executors and beneficiaries alike.
Taking Inventory of Digital Assets
Begin by compiling a comprehensive inventory of your digital assets. Digital assets include email accounts, digital currencies like Bitcoin, websites, blogs, photos, videos, online bank accounts, health records, social media profiles, and digital copyrights.
Track usernames, passwords, security questions, and the associated email addresses for each of your digital assets. However, keep this sensitive data secure from unauthorized access. Cybersecurity providers often provide secure digital vaults where you can store sensitive information like usernames and passwords. This will serve as a roadmap for executors searching for your digital assets.
Gaining Necessary Access
Next, ensure your executor or trusted person can access your digital assets when necessary. Some online platforms, like Google and Facebook, allow you to nominate a person who can access your account in the case of death or incapacitation. This deliberately planned access will help prevent legal complications.
However, remember certain digital assets, like digital currencies, function differently. Without the password (private key), these assets can be irrecoverable. Where possible, allow your executor access to your private keys and educate them on their use.
Updating Records Regularly
The digital landscape evolves constantly, with new platforms and accounts rapidly emerging. Regularly updating your records to incorporate any new digital assets is equally as important as the initial set-up. An ideal frequency could be annually or bi-annually.
Also, revisit your chosen executor’s status. Ensure they remain suitable and willing for the task.
Incorporate Digital Assets into Your Estate Plan
Creating a comprehensive digital footprint is just the start. The next crucial step is incorporating this into your overall estate plan.
Consult with an estate planning attorney to guide you in preparing a Digital Assets Directive – a formalized document detailing your wishes about each digital asset. This can provide guidance to your executor on how to handle each digital asset, including messages you wish to send, posts to publish, or even accounts to delete.
A Digital Assets Directive can also provide contextual notes to your executor. For example, they may explain the importance of specific digital assets, identify valuable assets unknown to the executor, or provide instructions for handling sensitive information.
Legal Compliance
While establishing digital assets access for executors, you should comply with state laws, terms of service agreements, and federal laws like the Stored Communications Act and Computer Fraud and Abuse Act.
Laws surrounding digital assets vary. While some states have adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), others have different laws. RUFADAA allows fiduciaries (including executors) to manage digital assets and permits detailed specifications about the desired level of access.
Terms of service agreements can also limit what you can legally do with your account. Breaking these policies can cause legal issues for your executor.
Privacy Considerations
Finally, consider privacy implications. This includes your privacy, the privacy of people you communicate with, and potential privacy violations for your executor. For example, accessing a deceased person’s emails can sometimes lead to unwanted information.
Digitals assets planning, however complex, serves a critical role in modern estate planning. With the rapid increase in digital properties, a comprehensive digital estate plan will prove indispensable for smooth succession and administration. Advisors are available to ensure you cover all aspects, keeping up to date on the relevant laws, agreements, and services, leaving a seamless digital legacy.
