The Revised Uniform Fiduciary Access to Digital Assets Act (or "UFADAA") will take effect in Indiana on July 1. The new law addresses the rights of a fiduciary, such as a personal representative, trustee, attorney-in-fact or guardian, to access digital property, such as online financial accounts, emails, texts, social […]
What happens to your digital property when you die? This can be a very challenging issue for your executor when settling your estate.
You can make your executor’s job easier by listing all the electronic devices and online services that you use. With a letter of direction, you can tell your executor what should happen to them after you die.
Use an address book or worksheet to alphabetically list your devices and online accounts. Then tell your executor where to find your list. User names and passwords on your inventory list are the keys to open the doors to your electronic devices and keep online accounts active.
Remember that Canada’s privacy laws make it difficult for your executor to take over the online accounts of another person. When you sign up for an online account, the terms of service agreement restricts access to the account-holder only. That means you cannot bequeath your social media account, video game account, or gambling account to a beneficiary even if they have great value.
In the U.S., many states have created laws to give an executor the right to access and manage digital assets of a dead person. No similar laws have been enacted in Canada yet. Until our laws are updated and service providers change their policies, Canadians can include clauses in their wills that give executors permission to deal with digital assets.
Your executor can browse your email messages to track down estate assets. Email messages give clues about bills to be paid. Email reminders to download T5 and T4RIF slips can lead to financial accounts. Your emails will reveal confirmations of business, gaming, streaming and shopping transactions.
Maybe you have YouTube videos or a blog that generates advertising revenue. If you are receiving thousands of dollars per month in payments from ad clicks, your executor would want to maintain that revenue stream.
Do you own a valuable domain name? Remind your executor to pay the fee to renew the registration until the domain name is sold.
Your executor should find all your electronic hardware such as smartphones, tablets or laptop computers. Keep these devices and safeguard them until data can be extracted. Once all online accounts have been closed or transferred, electronic devices can be stripped and passed along with other estate assets.
After you have died, your executor can access and delete your Facebook, Twitter and LinkedIn accounts by knowing your passwords. What if the family wants continued access to their loved one’s online photos and personal messages? Social media websites will eventually take steps to protect privacy as a standard security procedure.
Facebook allows family members to either delete or “memorialize” the accounts of a deceased user. In a memorialized account, a person’s existing friends network can leave comments and photos but nobody has permission to log in or edit the account.
Music, e-books and photos
Who gets your collection of digital photos and videos in online cloud storage and social media sites after you die? Some digital assets cannot be legally bequeathed to anyone. You pay for a personal licence to use digital files, such as iTunes music and e-books. These personal rights expire when the user dies.
Even if you bequeath your iPad to a family member, you cannot bequeath the apps you have purchased and installed on your iPad.
Thieves can use a dead person’s information to create a fake identity to rack up credit card charges and apply for loans. Your executor can safeguard the estate by notifying credit agencies of the death.
Terry McBride, a member of Advocis, works with Raymond James Ltd. The views of the author do not necessarily reflect those of Raymond James Ltd. Information is from sources believed reliable but cannot be guaranteed. This is provided for information only. We recommend that clients seek independent advice from a professional adviser on tax-related matters. Securities offered through Raymond James Ltd., member of the Canadian Investor Protection Fund. Insurance services offered through Raymond James Financial Planning Ltd., not a member of the Canadian Investor Protection Fund.