The Virtual Estate

As the information age continues more and more people are now using the internet to store and manage their assets, such as bank accounts. Now, about 36% of adults 45 and older are using online banking. In addition to these people, millions in this country are using technology store their financial records online. 

This is becoming a problem because many estate planning lawyers do not include provisions about the distribution and accessing of digital assets in their wills. The lack of this provision has many consequences for the executor and beneficiaries of an estate. The obvious one is that the surviving beneficiaries might not be able to access their loved ones accounts, which could include banking records and other financial documents. Another problem that might occur is that the executor might not be able to stop payments on certain assets, such as utility bills. Without the proper forms, an executor might not even know how to stop a service like cable. In some occasions, even the company that hosts the online documentation might not be able to help a surviving family access the documents. To prevent this from happening to clients, an attorney might want to consider documenting a step by step process so that the surviving family members will be able to access their loved ones accounts. Attorneys might also want to consider having their clients fill out informational forms or provide the secure information that would allow the family to access the online accounts and create an inventory listing their digital assets.

See Tania Karas, Protecting Your Virtual Estate, Wall Street Journal: SmartMoney, July 10, 2012.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.