Protecting Your Digital Assets in a New York State Estate Plan
In today’s digital age, a person’s estate is not limited to physical assets. Today, people own a variety of other assets that are not in a physical form. Some of these are, known as digital assets. Digital assets include social media profiles, cryptocurrencies, email accounts, etc. Our digital assets hold significant value, just like our physical assets. `These assets can have both sentimental and financial value. Yet, people often overlook digital assets when creating an estate plan. To ensure your digital assets are protected or properly transferred after death or incapacitation, it is vital to address them properly in your estate plan.
Understanding Digital Assets
Digital assets are intangible property that only exist in electronic form, yet, as stated above, these assets may hold either monetary or sentimental value. The following are some common digital assets under New York law;
- Financial digital assets, like cryptocurrencies, PayPal accounts, and online investment platforms.
- Social media accounts like Instagram, Facebook, and Twitter
- Email and cloud storage accounts, such as Gmail and Outlook
- Websites and blogs
- Intellectual property like trademarks, copyrights, and digital media.
- E-commerce accounts on sites like Amazon and eBay
- Airline miles, hotel points, credit card points, and other reward program points
Why Protect Your Digital Assets?
Protecting your digital assets is vital for various reasons, including the following;
- Preventing the loss of value: Digital assets like online investment accounts and cryptocurrency may have significant financial value that should be preserved after incapacitation or death.
- Preventing identity theft: Unprotected digital assets are prone to unauthorized access.
- Protecting sentimental items: Protecting personal photos, videos, documents, and other items stored in cloud services can ensure they are preserved for loved ones.
- Avoiding loss of access: Without a proper plan, family members or fiduciaries may be unable to access critical online accounts.
The Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA)
Access to digital assets is vital for managing an estate after someone passes away. However, terms of service from online providers and federal law often restrict access to these accounts and to the kind of information that can be released. The RUFADAA, which added Article 13-A (Administration of Digital Assets) to the New York EPT Law and which addresses the growing need for estate planning around digital assets, provides guidance on how people can leave digital assets behind and the powers a fiduciary, such as a trustee or executor will have to access someone’s digital estate.
RUFADAA gives users (holders of online accounts) the option of giving fiduciaries access to their digital assets through online tools such as Google or traditional estate planning documents like wills and trusts. This provision overrides service agreements that usually prohibit third-party access.
Steps To Take to Protect Digital Assets in Your New York Estate Plan
The following are some steps you can take to protect your digital assets in your NY estate plan;
- Create a comprehensive list of your digital assets
- Assign a digital executor who will be responsible for managing and distributing your digital assets
- Incorporate your digital assets in your will or trust
- Clearly state your intentions regarding the handling of your digital assets
- Grant access to your fiduciaries to access your digital assets
- Regularly review and update your plan
Contact A Mahopac or Pleasantville Asset Protection Attorney
At the firm of Meyer & Spencer PC, our Westchester County estate planning attorney can guide you and help you develop a comprehensive plan that safeguards your digital assets and aligns with your overall estate planning objectives. Contact us today at (914) 741 2288 or (845) 628 0009 to schedule a consultation in our Westchester County or Putnam County offices.
Source:
nysenate.gov/legislation/laws/EPT/A13-A
