Tag Archives: Digital assets

Digital assets: Who has access rights?

KATHY: IBUTTON AT BOTTOM OF PAGE.
MIKE: FACT FORMATTING.

A big problem may exist for your family if they want access the digital assets you stored on a hosted site.

Q. How will your spouse or executor gain access to e-mail or other business processes stored on hosted sites?
A. If you own a small business and your accounting or sales procedures are managed on hosted web sites (for instance Yahoo, Google, eBay, etc.), it is critical someone knows how to access these accounts. Digital assets are considered personal property. There are no default laws determining who has rights to access these assets or statutes an Internet Service Provider (ISP) must follow when someone dies.

The result: Each ISP has set its own policies on whether to provide passwords or user IDs to your spouse, executor or trustee when you die. Some ISPs may not.

If you work in a small business, your chief executive officer or chief financial officer may not be able to access company files without your passwords.

When you set up accounts on hosted services, ask what their policy is regarding user IDs and passwords when someone dies. Plan accordingly. Create and maintain a list of URLs, user IDs and passwords for important data.

Fact: Internet service provider policies.
AOL. If you have an AOL e-mail account, your executor or trustee can send a letter to AOL requesting your user ID and password, accompanied by a certified copy of your death certificate. AOL will then disclose your user ID and password.

EBAY (Seller). Same as AOL.

EBAY (Buyer). No access.

YAHOO. Yahoo will not provide anyone with your user ID and password when you die. Your executor, spouse or business partner will not be able to obtain your user IDs and passwords for any e-mail or other accounting or sales data hosted on their sites.

MSN. If you have an e-mail account with Microsoft, Microsoft will give your executor or spouse access to your address book and instant messaging contacts. They will not disclose your user ID and password. Your e-mail messages can’t be read or responded to by anyone who does not know your user ID or password.
ibutton: Internet Service Provider Password Policies diesmart.com/ibutton

Where does your Pokemon go after you die?

Everyone today has several online account and is part of the digital world. Are you one of the millions of people playing Pokemon? Are you using real US dollars to make in-game purchases? Do you place a real value on your game progress?

Well what happens to your account when you die? According to a recent Forbes article, if you have online accounts for things like Pokemon, Facebook, LinkedIn, Twitter and Gmail, the answer is not a simple one.

First you need to look at federal and state law. At the federal level, there isn’t any direct authority related to digital assets. At the state level, some states have enacted legislation to allow an estate’s executor to gain access to some digital assets upon the death of their owner. However, this legislation does not extend to all 50 states and is not totally consistent in its direction.

Once digital assets are treated more like physical assets, then your will, trust or state succession laws will determine how these accounts are transferred. However, you may not want all of these assets transferred; you may want them deleted on your death. For example, you may not want your spouse to read all of your emails or private Facebook messages. You will need to indicate your wishes in your estate plan.

If you have online accounts at places like Home Depot or Lowes, you may want to direct your executor to pay any outstanding balance and then delete that account so that it can’t be hacked.

Have you read the service agreements that you clicked “okay” for when you signed onto Pokemon Go or Facebook or Gmail. They put restrictions on your ability to share passwords or to transfer the account. “In fact, Pokemon Go’s contract gives you a ‘limited nonexclusive, nontransferable, non-sublicensable license to the application.” What this means is that when you die, your Pokemon Go account is dead as well.

As you can see, online accounts are governed by documents as well as state laws. You need to carefully read the agreements that you “sign” so you can understand what you really have….or don’t. When you prepare your estate plan, make sure that you include a list of the names of all of your online accounts, their passwords and usernames so your family can access your accounts when you die. Develop a plan for the disposition of those accounts when you die. It is an important part of any estate plan.

For more information about your digital estate, check out our book, Access Denied: Why Your Passwords Are Now As Important As Your Will.

Many states join the UFADAA bandwagon

Earlier this year, we wrote about the first state to adopt the new, revised UFADAA (Uniform Fiduciary Access to Digital Assets Act) recommended statute. This statute makes clearer the ways which an estate executor and others can deal with your digital assets when you die.

Indiana, this week, joined the ranks of states that have decided to pass a “law that addresses the rights of a fiduciary, such as a personal representative, trustee, attorney-in-fact or guardian, to access digital property, such as online financial accounts, emails, texts, social media accounts and online document and picture storage.”

Since digital assets are a large part of many people’s estates, this new act has become more important. States are recognizing this and, as of this date, many have either adopted the act or are in the process of considering it.

For information about whether your state has adopted this important act yet, click here.

For more information about digital estate planning, check out our book “Access Denied: Why Passwords Are Now As Important As Your Will” or go to our website www.diesmart.com.

Seen a digital assets & legacy infographic?

We came across a very easy to read and understand infographic. It provides important information about estate and digital asset planning. Although the data is based on a survey done in the United Kingdom, the figures are probably very similar to what would be found if the same survey were done in the United States.

In light of the digital all-encompassing digital world in which we live, it’s especially amazing that almost 75% of people believe that it’s important to be able to view a loved one’s social media presence after their death. Yet less than 5% of those people have used the Facebook and Google tools available to enable this to happen.

Less than 10% of people have made any plans for their social media accounts to remain active after they die and only 3% have made any plans for purchased digital assets.

Only about half of the people queried have shared with anyone the password for their mobile phone or computer.

Digital planning is a critical part of putting your estate plan in place prior to your death. Otherwise, your wishes may not be carried out and, even more importantly, your heirs may not be able to access your online assets. Since no one knows when he or she is going to die, it’s important for everyone to take the necessary steps and put together a legal estate plan now.

For more information about digital estate planning, go to www.diesmart.com or purchase our book ACCESS DENIED: Why your passwords are now just as important as your will.

Does your state law protect your digital assets?

Last year, a comprehensive law was proposed by the National Conference on Uniform State Laws. That law places access to a wide range of digital assets on a par with access to traditional tangible assets.

“As the number of digital assets held by the average person increases, questions surrounding the disposition of these assets upon the individual’s death or incapacity are becoming more common. Few laws exist on the rights of fiduciaries over digital assets. Few holders of digital assets and accounts consider the fate of their online presences once they are no longer able to manage their assets.”

Nearly half of U.S. state introduced legislation in 2015 to enact this revised Uniform Access to Digital Assets Act (UFADAA). However, most of them have been unable to actually pass the law due to opposition from Internet and telecommunications companies. As of March 2016, only four state have enacted legislation based on this Act – Oregon, Wyoming, Tennessee and Florida.

Are you concerned about who will have access to your digital assets when you become incapacitated or die? Do you care whether family members can see your emails and other personal electronic correspondence? Would you prefer that loved ones can continue to maintain your Facebook account or do you want it shut down? These are just a few of the questions that the revised UFADAA may be able to address…only if your state adopts appropriate legislation.

For more information about digital assets, check out our book ACCESS DENIED or go to our website www.DieSmart.com.