So much of our lives are conducted online. From social media profiles and email accounts to online banking and subscription services, digital assets have become a significant part of our personal and professional identities. When someone passes away, these digital assets must be addressed as part of the estate administration process. However, the management and transfer of them can be complex, especially since laws and policies surrounding online accounts and digital property are still evolving. This is where the expertise of an estate lawyer becomes crucial in navigating the intricacies of managing these assets after death.
Managing Digital Assets
Digital assets encompass a wide variety of online properties, including but not limited to:
Social Media Accounts: Facebook, Instagram, Twitter, LinkedIn, and other platforms where individuals maintain personal profiles, photos, posts, and private messages.
Email Accounts: Gmail, Yahoo, and other email services, which may contain important personal, financial, and legal communications.
Online Banking: Bank accounts, credit card accounts, and investment portfolios managed through online platforms.
Cloud Storage: Files, photos, videos, and other personal documents stored on platforms like Google Drive, Dropbox, or iCloud.
Cryptocurrency: Digital currencies like Bitcoin, Ethereum, and others that require secure storage in digital wallets.
Subscription Services: Accounts with streaming platforms (e.g., Netflix, Spotify), online shopping services (e.g., Amazon), and other digital services that require access to personal accounts for renewals, billing, and transfers.
As technology advances, people accumulate more digital assets during their lifetimes. When someone dies, these assets may need to be accessed, transferred, or deleted by family members, loved ones, or the estate executor.
The Challenges of Managing Assets After Death
One of the primary challenges in handling digital assets after a person’s death is the legal ambiguity surrounding ownership and access. Many platforms have terms of service that limit who can access an account after the account holder’s death. For example, Facebook and Instagram allow users to designate a “legacy contact” who can manage the account after death, while other platforms may automatically lock accounts upon the death of the user.
Many people do not leave explicit instructions regarding their digital assets in their wills or estate plans. This oversight can lead to significant challenges when trying to locate and access online accounts. Without proper documentation or consent from the account holder, loved ones may find themselves locked out of important accounts, such as email or online banking services.
The situation is further complicated by the fact that each online platform has its own policies, and laws regarding digital asset management vary by jurisdiction. Some states have enacted specific legislation to address the management of digital assets after death, such as the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which provides a legal framework for executors to access online accounts. However, not all states have adopted this law, and many others still operate under vague or outdated regulations.
Navigating Assets in Estate Administration
Given the complexities of managing digital assets, attorneys play a vital role in ensuring that the process is handled legally and efficiently. Such as:
Reviewing the Deceased’s Accounts
One of the first steps in managing after death assets is identifying all of the deceased’s online accounts and digital properties. An attorney works with the executor to compile a list of all digital accounts, including social media, email addresses, cloud storage, online banking accounts, and cryptocurrency wallets. In many cases, this information may not be readily available, so the attorney may work with the executor to investigate where accounts may be held.
It’s crucial for individuals to leave detailed instructions for these accounts, including passwords and access codes. Legal counsel will often encourage clients to store this information securely in a password manager or in a sealed document that can be accessed by the executor upon their death.
Accessing and Managing Accounts
Once the digital assets are identified, attorneys help executors access the deceased’s accounts, which can be a challenging and delicate process. In the case of social media accounts, for example, an estate attorney will assist in obtaining the appropriate legal documents to provide to platforms such as Facebook, Twitter, or Instagram to allow the executor to either deactivate, memorialize, or delete the account.
For email and online banking accounts, the executor and the attorney will often need to work with the institutions directly to gain access to the accounts. This may involve submitting death certificates, a copy of the will or trust, and proof of identity for the executor. The attorney will ensure that the transfer of assets, closure of accounts, or distribution of information complies with the deceased’s wishes and legal requirements.
Dealing with Cryptocurrency
Cryptocurrency presents a unique set of challenges. Since digital wallets and exchanges are often secured with private keys and passwords, it can be difficult for family members to access these assets after death. Many people fail to document their private keys, leaving loved ones unable to recover or manage their cryptocurrency holdings.
It is often recommend that clients include instructions on how to access crypto wallets in their will, including providing a secure way to share private keys with the executor. In some cases, attorneys may need to work with cryptocurrency platforms to ensure proper access and compliance with the platform’s policies.
Ensuring Proper Transfer or Disposal of Digital Assets
Legal professionals also help with the transfer or disposal of digital assets according to the deceased’s wishes. This could involve transferring ownership of online businesses, intellectual property, or valuable digital files, such as photos, videos, or music libraries. The attorney will ensure that the assets are appropriately distributed to the designated beneficiaries.
In cases where the deceased did not leave specific instructions regarding digital assets, the estate attorney will work with the executor to make decisions that align with the overall will and the interests of the beneficiaries. If an asset has no monetary value or purpose, it may be simply deleted.
The Importance of Including Digital Assets in Estate Planning
Given the increasing importance of digital assets, it’s essential for individuals to address these assets in their estate plans. Legal counsel can assist in creating detailed instructions for managing digital assets, including designating a digital executor who will be responsible for handling these accounts after death. Additionally, they can advise on how to safely store passwords and access information, and ensure that all digital assets are included in the overall estate plan.
By taking proactive steps, individuals can prevent confusion and complications for their loved ones and ensure that their digital legacy is handled according to their wishes.
Conclusion
The importance of digital assets in our lives cannot be overstated, and handling these accounts after death requires careful legal consideration. Legal help is available to help manage the complex world of online accounts, ensuring that digital assets are managed, transferred, or disposed of according to the deceased’s wishes. As digital assets continue to grow in significance, it’s essential to include these assets in your estate plan to ensure a smooth and legally compliant transition for your loved ones.