Digital Assets in Estate Litigation
As our lives move increasingly online, digital assets have become an important but often overlooked part of estate planning. These assets can carry significant financial, sentimental, and even legal value. This means that when someone dies, these assets can be a source of conflict during probate and estate disputes.
Digital assets may include the following:
- Social media accounts
- Email accounts and cloud storage
- Cryptocurrencies
- Online bank or investment accounts
- Domain names and websites
- Digital photos, videos, and personal files
- Loyalty program points or virtual gaming items
There are a couple legal concerns that heirs need to be aware of. For example, Terms of Service agreements are found on platforms like Google, Apple, and Facebook, and they often have their own rules for transferring or deleting accounts. Also, there are privacy concerns. Even heirs may not automatically have the right to view private communications unless authorized in estate planning documents.
You should also know that laws governing digital assets vary by jurisdiction. Some states have enacted legislation to address the management and transfer of digital assets. Consult with an estate planning attorney to assist with your digital estate plan.
Common Issues
Some common issues that may lead to conflicts and probate litigation include:
- Access issues. Executors and heirs may struggle to access accounts due to password protections, two-factor authentication, or strict privacy laws,
- Ownership disputes. Heirs may disagree over who owns or controls digital assets, especially if multiple family members contributed content (like family photo albums stored online).
- Cryptocurrency complications. Without private keys, crypto wallets are essentially lost forever. Courts are seeing more disputes over this digital wealth.
- Intellectual property rights. Blogs, YouTube channels, or digital art can create disputes over royalties and ongoing revenue streams.
- Valuation issues. Assigning fair market value to cryptocurrency or online businesses is complex, often requiring expert testimony in estate litigation.
How to Protect Your Digital Assets
Take these steps when planning your estate:
- Inventory your digital assets. Create a comprehensive list of all your digital accounts and assets, including usernames, passwords, and any relevant access information.
- Designate a digital executor. Appoint a trusted person who will be responsible for managing your digital assets after your passing. Ensure they are aware of their role and have the necessary access information.
- Include digital assets in your will. Clearly state in your will how you want your digital assets to be handled. Specify who will inherit them and any instructions for their management.
- Use password management tools. Employ secure password managers to store and share access credentials with your digital executor.
Seek Legal Help
Digital assets can be complicated to deal with. Heirs may face access and ownership issues unless the details are explicitly spelled out in estate planning documents.
Fort Lauderdale probate litigation lawyer Edward J. Jennings, P.A can help you handle digital assets and other complex issues involved with estates and probate. Schedule a consultation today by calling 954-764-4330 or filling out the online form.
Source:
purduegloballawschool.edu/blog/news/digital-estate-planning
