Do you use e mail? Facebook? Have a web-based-solely checking account? What about an iTunes library? Or e-books saved on a Kindle or Nook?
In 2011, Americans valued their digital property at practically $fifty five,000 dollars, in accordance to a survey performed for McAfee, a significant safety know-how firm. This can solely imply one factor: the arrival of the digital age has spawned the need for extra property planning.
Digital belongings might symbolize a sizeable portion of your property, so it’s essential to perceive what they’re and the way to incorporate them into your plans.
Digital belongings might embody:
– private belongings saved on a pc, server, exterior arduous drive, sensible cellphone, within the Cloud, or uploaded onto a web site. These gadgets might embrace images, movies, emails, immediate messages, playlists, medical information, tax or enterprise paperwork, or different data.
– social media belongings together with the web sites Facebook, LinkedIn and Twitter, in addition to e-mail accounts
– monetary accounts and information, akin to conventional financial institution and funding accounts, accounts with Amazon, PayPal or different monetary websites, an eBay account, or subscriptions to digital magazines or different media suppliers
– domains and blogs
– loyalty program advantages, resembling the buildup of miles or factors by way of frequent flyer applications or bank card accounts.
Access to most of those digital belongings requires usernames, passwords, e-mail addresses, responses to safety questions, or different entry codes. Without a correct plan in place, you might depart your household tied up in an online of pink tape whereas making an attempt to entry your accounts. Or, maybe you have an e-mail account you’d somewhat they not give you the chance to entry. In both case, it’s important to incorporate these digital property into your property plan.
Planning for digital belongings is made troublesome due to various points, as know-how and legal guidelines proceed to evolve. Some of those points embody:
– the potential utility of federal legal guidelines and laws relating to unauthorized entry to numerous digital belongings and the “autos” used to retailer such digital belongings, and sure federal privateness legal guidelines
– the present dearth of legal guidelines of the varied states relating to digital belongings, and the truth that any such state legal guidelines that do exist could also be insufficient because the tempo of know-how is quicker than the legal guidelines can adapt (Michigan has not but handed any regulation relating to planning for digital property)
– the insurance policies and guidelines contained within the numerous “consumer agreements” that govern on-line accounts and repair suppliers, and the dearth of uniformity with respect to any such “person agreements.”
The authorized uncertainties surrounding the dealing with and disposition of digital belongings reinforces the significance of planning to enhance the chance that your needs will likely be carried out.
Some ideas to think about when creating your digital estate plan:
– develop a listing of your digital belongings, together with usernames, passwords, URLs, solutions to account questions, and the way and the place the digital property are held or saved (contemplate whether or not such info must be listed on one or a number of inventories for security functions)
– find and make the most of a secure place to retailer the stock paperwork
– title a digital asset “fiduciary”, together with an agent in a sturdy energy of legal professional, a private consultant in a will, and, if relevant, a successor trustee in a belief
– present particular directions for the dealing with and disposition of your property upon incapacity and loss of life
The time for planning for digital property has arrived. The legal guidelines relating to the dealing with of and planning for digital belongings on the time of incapacity and loss of life will proceed to develop and evolve. It is crucial to proceed to monitor new and altering legal guidelines on this space. Further, it is crucial to keep up to date on how varied service suppliers are coping with entry to digital belongings at demise.
FraserTrebilcock Blog
Do you use email? Facebook? Have an online-only bank account? What about an iTunes library? Or e-books stored on a Kindle or Nook?
In 2011, Americans valued their digital assets at nearly $55,000 dollars, according to a survey conducted for McAfee, a major security technology company. This can only mean one thing: the arrival of the digital age has spawned the necessity for additional estate planning.
Digital assets may represent a sizeable portion of your estate, so it’s important to understand what they are and how to incorporate them into your plans.
Digital assets may include:
- personal assets stored on a computer, server, external hard drive, smart phone, in the Cloud, or uploaded onto a website. These items may include photographs, videos, emails, instant messages, playlists, medical records, tax or business documents, or other records.
- social media assets including the websites Facebook, LinkedIn and Twitter, as well as e-mail accounts
- financial accounts and records, such as traditional bank and investment accounts, accounts with Amazon, PayPal or other financial sites, an eBay account, or subscriptions to electronic magazines or other media providers
- domain names and blogs
- loyalty program benefits, such as the accumulation of miles or points through frequent flyer programs or credit card accounts.
Access to most of these digital assets requires usernames, passwords, email addresses, responses to security questions, or other access codes. Without a proper plan in place, you could leave your family tied up in a web of red tape while trying to access your accounts. Or, perhaps you have an email account you’d rather they not be able to access. In either case, it’s essential to incorporate these digital assets into your estate plan.
Planning for digital assets is made difficult due to a number of issues, as technology and laws continue to evolve. Some of these issues include:
- the potential application of federal laws and regulations relating to unauthorized access to various digital assets and the “vehicles” used to store such digital assets, and certain federal privacy laws
- the current dearth of laws of the various states relating to digital assets, and the fact that any such state laws that do exist may be inadequate as the pace of technology is faster than the laws can adapt (Michigan has not yet passed any law relating to planning for digital assets)
- the policies and rules contained in the various “user agreements” that govern online accounts and service providers, and the lack of uniformity with respect to any such “user agreements.”
The legal uncertainties surrounding the handling and disposition of digital assets reinforces the importance of planning to increase the likelihood that your wishes will be carried out.
Some tips to consider when creating your digital estate plan:
- develop an inventory of your digital assets, including usernames, passwords, URLs, answers to account questions, and how and where the digital assets are held or stored (consider whether such information should be listed on one or multiple inventories for safety purposes)
- locate and utilize a safe place to store the inventory documents
- name a digital asset “fiduciary”, including an agent in a durable power of attorney, a personal representative in a will, and, if applicable, a successor trustee in a trust
- provide specific instructions for the handling and disposition of your assets upon disability and death
The time for planning for digital assets has arrived. The laws regarding the handling of and planning for digital assets at the time of disability and death will continue to develop and evolve. It is imperative to continue to monitor new and changing laws in this area. Further, it is important to stay up to date on how various service providers are dealing with access to digital assets at death.
Mark E. Kellogg is a Shareholder at Fraser Trebilcock Davis & Dunlap, P.C., who has devoted his 27 years of practice to the needs of family and closely-held businesses and enterprises. For more information or to discuss your estate planning needs, email mkellogg@fraserlawfirm.com or call 517.377.0890.
Author: Fraser Trebilcock
