Mind Your 4 Digital Asset Types
An attorney I met had a father-in-law who ran 3 businesses from his Blackberry. When he died suddenly, she was shocked at how difficult it was to access his emails, accounts, and online life. Every online provider had different requirements. This was her introduction to the concept of the “digital asset.”
Have you ever given thought to your digital assets and how someone else would step in your shoes? It’s estimated the average American has between 30 and 80 online accounts with passwords. Keeping track can be overwhelming, but we can begin by naming 4 main types – personal, financial, business, and social:
1) Personal assets:
Photos, Movies, Books, E-books, Music, and Podcasts. Unlike your Simon and Garfunkel records, Michael Jackson CD’s, or Rocky DVDs that the kids will get whether they want them or not, there are some e-libraries you can’t leave to anyone. For example, access to Kindle and iTunes libraries die with their owners. For all your photos and videos stored in the cloud, make sure you have a backup, especially if it’s iCloud. Upon proof of death, all content in an iCloud account is deleted.
2) Financial assets:
Bank, Brokerage, PayPal, Frequent Flyer, Bitcoin, etc. Did you sign up for paperless statements? Good for you, but make sure you have documented somewhere that the accounts exist. If no one can get into your email, and you haven’t kept good notes or a plan somewhere, they may not know you opened a new Treasury Direct account.
Additionally, once the bank or brokerage company learns of your demise, they may lock out the online account, preventing anyone from accessing statements. Statements are essential for understanding how much was in the account at date of death, but primarily, how your assets are titled.
3) Business assets:
Blogs, E-books, Books, E-commerce sites. Intellectual property is often housed digitally. Have you inventoried any copyrighted works and addressed them in your estate planning documents? Can someone get to them in a way that will continue to produce revenue or royalties?
4) Social accounts:
Email, Text messages, Facebook, Twitter, Instagram, Pinterest, LinkedIn, etc.. An elderly friend of mine passed away 6 years ago but his face and profile still pop up occasionally as someone “I might know” on my Facebook and LinkedIn. I am guessing his family either aren’t involved with social media, or simply were not able to log in and post a nice memorial tribute to a wonderful man. What do you want your online presence to look like, if at all, and for how long, once you’re gone?
With all of these different, it seems like you might need a digital asset will and executor. It turns out there are such things now, and 10 states, including Florida, have ratified them through passage of the Revised Uniform Fiduciary Access to Digital Asset Act (RUFADAA). (You can more about it here: https://www.onefpa.org/journal/Pages/APR18-Estate-Planning-for-Digital-Assets-Understanding-the-Revised-Uniform-Fiduciary-Access-to-Digital-Assets-Act-and.aspx. In the act, you can name a digital asset executor – someone to access your email, text messages, and social media accounts, in your will or trust.
If you have been reading or watching for a while, you know I am a fan of having a Notebook. But if you aren’t the paper Notebook type, or just ready to reduce paper, check out www.everplans.com. For $75, you can have a plan and inventory of your digital estate, easily accessible to those you trust. If you give it a try, let me know how it works out, and I’ll post feedback here for future readers.