Digital Asset Inheritance and Estate Law
In today’s digital age, we are constantly creating and accumulating digital assets such as social media accounts, online banking and investment accounts, and even cryptocurrency. But what happens to these assets after we pass away? Do they hold any value in our estate? These questions have prompted the need for digital asset inheritance laws to be included in estate planning. In this article, we will delve into the complexity of digital asset inheritance and how estate law is adapting to accommodate these assets.
The Rise of Digital Assets
With the rise of technology and the internet, our lives have become increasingly digital. Online platforms have become a major part of our daily lives, and our digital footprint continues to grow with each passing day. This has led to the creation of new types of assets, referred to as digital assets, which can hold significant financial, sentimental, and even legal value.
Digital assets can include anything from social media accounts, blogs, online files, to cryptocurrencies, and online shopping accounts. These assets can hold monetary value, intellectual property, and sentimental significance. As our reliance on technology and the internet grows, so does our digital presence and the value of our digital assets.
The Need for Digital Asset Inheritance Laws
Traditionally, estate planning has focused on tangible assets such as property, vehicles, and physical bank accounts. However, as more and more of our assets become digital, it has become necessary to include them in our estate planning as well. Without proper planning, digital assets can be lost, inaccessible, or fall into the wrong hands after the owner’s passing.
One of the biggest challenges with digital assets is access. In the event of incapacitation or death, it can be difficult for loved ones to access and manage these assets without the necessary login information or legal authority. This can lead to financial loss, emotional distress, and even legal battles. To prevent these issues, digital asset inheritance laws have been introduced.
Digital Asset Inheritance Laws: An Overview
Uniform Fiduciary Access to Digital Assets Act (UFADAA)
Created in 2014, UFADAA establishes guidelines for fiduciaries to access, manage, and distribute digital assets. It also provides a legal process for social media companies, email providers, and other digital platforms to comply with requests from fiduciaries. Fiduciaries include executors, trustees, and agents acting under a power of attorney.
RUFADAA (Revised Uniform Fiduciary Access to Digital Assets Act)
In 2015, an updated version of UFADAA, RUFADAA, was created to address concerns and criticisms of the original act. RUFADAA clarifies the status of digital assets as property and expands the definition of fiduciaries to include both personal representatives and conservators.
Privacy Laws and Digital Assets
Privacy laws such as the Electronic Communications Privacy Act (ECPA) often restrict access to digital assets, even for fiduciaries. However, according to RUFADAA, the terms of service agreement agreed to by the user prevails over the ECPA. This means that if a user has given consent for a fiduciary to access their digital assets, the terms of service agreement will override the ECPA.
Including Digital Assets in Estate Planning
Considering the complexities of digital asset inheritance and the ever-evolving digital landscape, it is crucial to include these assets in your estate planning. Here are some key steps to consider:
Take Inventory of Your Digital Assets
The first step is to take inventory of all your digital assets, including login information and instructions for your fiduciaries. This will help your loved ones locate and access your assets when needed.
Include Digital Assets in Your Will
Include language in your will that explicitly includes digital assets, their value, and how you want them to be managed and distributed after your passing.
Designate a Digital Executor
Considering the technicalities involved in managing digital assets, it may be wise to designate a digital executor who is well-versed in technology and can handle your digital assets accordingly.
In conclusion, digital asset inheritance and estate law is a complex and constantly evolving area of law. It is important to stay informed and stay ahead when it comes to protecting your digital assets in your estate planning. By including these assets in your estate plan and staying up to date with the relevant laws, you can ensure that your digital legacy is protected and passed on to your loved ones according to your wishes.
