When someone dies, the executor must look through paper records and watch the mail for bills and account statements to pay the deceased person’s debts.  The executor must also distribute all the bank accounts, personal property and real estate to the heirs as the Will or inheritance law requires.  But what about all the photos, books and music purchased and stored online, eBay accounts, and other “digital assets” of the decedent?

What Are Digital Assets?

Items that might be stored on a computer or online storage site include unpublished novels, poems, photographs or music produced by the owner that may have value as intellectual property.  Online income sources may include advertising revenue from a website, revenue from selling things through Etsy or eBay, or a royalty stream from a digital work of art.  In addition to digital property with monetary value, passing down digital items such as photographs or blog writings that carry sentimental value can be just as important to your heirs.

The only way to find digital assets may be by going through password-protected digital correspondence, such as e-mail, or websites that are encrypted.  Therefore, it is important to include in your estate plan provisions regarding who will have access to digital assets in the event of your incapacity and who will inherit those assets at your death.

Why It’s Important

“It’s easy for your digital assets to be forgotten, and things of real value can potentially be lost,” said Evan Carroll, an information technology specialist and co-author of “Your Digital Afterlife: When Facebook, Flickr and Twitter are Your Estate, What’s Your Legacy?” (New Riders, 2010).

“Personal photographs and memories aren’t sitting in a shoebox in your closet anymore,” Mr. Carroll said.  “Now many are stored online anywhere and everywhere.”  To ensure that your wishes are carried out, you have a responsibility to make it as easy as possible for your heirs to locate your digital assets.

Firms that store writings, e-mail or photographs online, as well as social-media sites such as Facebook, LinkedIn and Twitter, all have their own procedures for what they allow to be passed on to others when an account holder dies.  For instance, Facebook allows an account to be deleted or memorialized, while Yahoo won’t divulge information to anyone, and it has been taken to court over the issue.

There are firms offering software that can help people keep track of the accounts and passwords, such as Entrustet, Legacy Locker Inc. and SecureSafe by DSwiss Ltd.

It’s easier for heirs to gain access to digital assets if the deceased person has set up a power of attorney for digital assets, or what some call a digital executor, said independent estate attorney and financial planner Scott R. Zucker.

A survey released in 2012 of 2,009 North Americans over 45 found that most people think that it is important to plan for their personal and financial digital assets, yet 57% haven’t set up the provisions in their estate plans.  Half of those who haven’t included digital assets in their estate plan didn’t think to do it, while 37% said that they don’t think it is necessary, according to the survey, conducted by BMO Financial Group.

How We Can Help

At Courtney Elder Law Associates, we can provide clients with printed tools that will assist in taking inventory of their digital property.  We also include specific provisions in powers of attorney and wills stating what they would like to happen with these assets and crafting documents to give an executor access to the accounts so that the assets land in the right hands.

“When we think of estate planning, it’s often focused around the more traditional aspects, such as leaving money for the children or to charities,” said Tina Di Vito, director of retirement strategies for BMO Financial.  “We need to start incorporating emerging trends, such as advancements in technology,” in order to keep the burden on loved ones to a minimum, she said.

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If we can be of assistance in helping you and your family protect your assets and plan for the future, call our experienced lawyers at Courtney Elder Law Associates today at 601-987-3000