Today, one of the most overlooked areas of planning sits in plain sight, Jamie Hopkins reminds financial advisors in FA Magazine, referring to digital assets, which might typically include:
- bank apps
- loyalty points on airlines
- social media accounts
- family photos
- music apps
- game apps
- email accounts
- domain names
Connections to these digital assets might be found on tablets, phones, flash drives, or CDs. And, while passwords and storage might feel like IT and not finance, advisors need to guide clients towards proactive planning, Hopkins cautions.
Since life is increasingly being lived online, at Geyer Law, we agree. At our Indiana estate planning law firm, we’ve been cautioning clients for years to include online assets along with real estate and investment accounts in their estate planning.
Without special planning, four very practical obstacles may present themselves to heirs of digital assets:
- not knowing the passwords
- reading encrypted information
- state and federal laws prohibiting unauthorized access
- restrictions online service providers have regarding turning over information without owners’ explicit consent
The Uniform Fiduciary Access to Digital Assets document, which was adopted by the Indiana legislature in 2016, has been revised with the goal of reducing the roadblocks estate representatives face in dealing with digital estate assets. But, as with any tool, that document does no good for heirs unless it is used.
How does that happen? By including a digital property section in one’s estate planning documents. At Geyer Law,, we stress that each of your digital devices and accounts needs a “seat” in your estate plan.t
– by Rebecca W. Geyer
