Did you know your social media accounts, cryptocurrency, and online gaming profiles can be valuable parts of your estate?
In Massachusetts, their fate depends on your estate plan, including a will or trust. Without planning, service providers or default state laws may decide what happens to them.
At Casey Lundregan Burns, P.C., we have guided Massachusetts families through estate planning for generations. Planning for digital property has become as key as managing traditional assets.
What Are Digital Assets?
Digital assets encompass a wide range of online and electronic items, many of which hold financial, sentimental, or practical value:
- Social Media Accounts (Facebook, Instagram, Twitter, LinkedIn, etc.)
- Email Accounts
- Online Banking and Investment Accounts
- Cryptocurrency Holdings (Bitcoin, Ethereum, etc.)
- Digital Photos, Videos, and Documents Stored Online (Google Drive, iCloud, Dropbox)
- Streaming Service Subscriptions (Netflix, Spotify, etc.)
- Gaming Accounts (Steam, Xbox Live, PlayStation Network)
- Loyalty Programs and Rewards Accounts
- Intellectual Property (such as blogs, YouTube videos, or artwork sold online)
These assets can have financial value (think cryptocurrency or loyalty points), sentimental value (family photos stored in the cloud), or even reputational value (personal blogs or social media accounts).
The Current Legal Landscape Around Digital Assets in Massachusetts
Unlike some other states, Massachusetts has not yet adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA). This means there are no specific state laws governing access to or inheritance of digital assets.
Instead, Massachusetts relies on general estate laws, such as wills, trusts, and intestate succession, to determine who inherits what.
However, even if your will or trust specifies how your digital assets should be distributed, service providers’ terms of service agreements can complicate matters. These agreements may limit the ability of your executor or heirs to access your accounts without proper authorization.
For example, many online platforms have privacy policies or user agreements that prevent access without explicit permission from the account holder.
This uncertainty highlights why proactive digital asset planning is so important.
Strategies for Effective Digital Asset Planning in Massachusetts
Planning for digital assets requires a thoughtful approach to ensure your online presence is managed as you intend.
1. Create a Will
A will is a critical tool for managing your digital assets after your passing. It allows you to:
- Appoint a Digital Executor: A digital executor is someone you specifically designate to handle your online accounts and digital property. Choose someone who is both tech-savvy and trustworthy. This person will be responsible for carrying out your wishes regarding your digital presence. Clearly explain your intentions to this individual during your lifetime.
- Provide Specific Instructions: Clearly outline how each type of asset should be managed. Should accounts be deleted, transferred, or preserved?
- Ensure Legal Authority: Explicit instructions in your will can help overcome the restrictive terms of service agreements.
2. Create a Comprehensive Digital Asset Inventory
It is nearly impossible for your loved ones to manage your digital assets without knowing what you own. Create a detailed inventory that includes:
- Account names
- Usernames
- Passwords
- Security questions
- Contact information for each platform
This information should be stored securely, such as in an encrypted file or a password manager. Share access with your executor or a trusted individual.
3. Utilize Digital Asset Trusts (If Applicable)
A digital asset trust can serve as a separate legal document detailing how your digital property should be managed. It offers more flexibility and privacy compared to a will.
4. Review Account Settings
Regularly reviewing and updating your online account settings is essential to ensure they align with your wishes.
Many platforms, like Facebook and Google, offer options to designate beneficiaries, authorized contacts, or legacy contacts to manage your account after your passing.
Using these tools ensures your digital assets are handled according to your preferences, reducing stress for your loved ones. Regular updates help keep these settings relevant to your current circumstances.
Potential Challenges and Considerations
Planning for digital assets presents unique challenges that require careful attention to ensure that your wishes are effectively carried out.
- Evolving Technology: Technology changes rapidly, and new platforms or tools may emerge. Therefore, it is crucial to regularly review and update your digital asset plan to keep it relevant.
- Privacy Concerns: Balancing access to your digital assets with the need to protect sensitive information requires thoughtful planning to maintain both security and accessibility.
- Unique Challenges of Specific Assets: Certain digital assets, such as cryptocurrency or intellectual property, can be particularly complex to manage and may require special instructions to ensure proper handling.
Secure Your Digital Legacy in Massachusetts with Casey Lundregan Burns, P.C.
If you are ready to plan for the future of your digital and traditional assets, our firm is here to help.
At Casey Lundregan Burns, P.C., we work closely with clients across Massachusetts to address the unique challenges of modern estate planning.
Call us today at 978-878-3519 to schedule a consultation. Together, we can ensure that every part of your estate—digital or otherwise—is managed according to your wishes, giving you peace of mind for the future.
Disclaimer: The information in this post is not intended as legal advice or as a substitute for the particularized advice of counsel. For more information, please consult an attorney.