Digital Asset Planning Becoming a Necessity

As I have previously discussed,it’s becoming more and more common among financial advisers to incorporatedigital assets into their client’s estate plan. If they don’t leave behind passwords or provisions detailing thetransfer of account ownership, “loved ones may never be able to access theirdigital photos, games, music, or videos, as well as their email, online-bankingand social-media accounts.”

Some estate planners suggest usingtrusts to hold digital assets while other planners are giving their clientschecklists containing data they will need to provide for the disposition of digitalassets.  Advisers suggest including anypasswords in a separate document from the will as wills can become public.

Meanwhile, the Uniform Law Commissionis drafting a law that would allow states to grant fiduciaries the right tomanage clients’ digital assets.  Please see my article, EstatePlanning in the Digital Age, for additional information on this increasingly popular topic.

See Arden Dale, More Estate Plans Account for ‘Digital Assets’, The Wall StreetJournal, June 13, 2013.

Special thanks toJim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringingthis article to my attention.