Digital assets have become a major concern when it comes to estate planning. While most states have enacted some form of the Uniform Fiduciary Access to Digital Assets Act, which allows an executor to manage certain digital assets, such as computer files and virtual currencies, the law does not give access to email, text messages, social media accounts, and other digital assets without explicit permission. A new law called the Uniform Electronic Estate Planning Documents Act is also being considered by state legislatures, which would recognize electronic and digital signatures on estate planning documents.
One of the main issues with digital assets after someone passes away is the lack of practical guidance on how to handle them. Survivors may struggle to access smartphones, email accounts, financial accounts, and more, leading to distress and uncertainty. Cyber thieves have also taken advantage of digital estates, stealing identities or causing damage before survivors can access and manage digital assets. The lack of comprehensive laws addressing these issues has left many individuals and families vulnerable to theft and confusion.
To avoid potential problems with digital assets, individuals should start by creating an inventory of their digital life. This includes listing all devices, access codes, online accounts, subscriptions, financial accounts, medical records, and any other digital assets they own. Online services or apps with legacy contact features can also be utilized to designate who can access accounts after passing away. By compiling all this information in a digital inventory, executor, trustees, and survivors will have a comprehensive guide to managing the deceased’s digital assets.
Once the digital inventory is complete, individuals should decide who will have access to and responsibility for each digital asset. Clearly stating in a will, trust, or power of attorney who should manage each digital asset can help prevent issues with settling the estate, accessing assets, and paying bills. While the Uniform Fiduciary Access to Digital Assets Act allows an executor to manage certain digital assets, it is important to define the limits of access to prevent unauthorized individuals from accessing personal information.
Determining who should have access to which digital assets can be a crucial step in protecting sensitive information. Whether it is assigning an executor or a family member to handle specific accounts, it is important to clearly outline these decisions in legal documents. By providing explicit directions in the will or trust, individuals can ensure that their digital assets are handled according to their wishes and prevent potential disputes among family members. Overall, taking proactive steps to address digital assets as part of the estate plan can help alleviate stress and confusion for survivors.
