Accessing a deceased person’s digital assets can be complex. As more of our lives move online, understanding these challenges is crucial for estate planning and management. Today, digital assets can have extremely high value, especially when linked to cryptocurrency and online banking. Fiduciaries need to understand the challenges of accessing these assets.
Lack of clear laws
One major issue is the lack of clear laws governing digital assets. Unlike physical assets, digital assets are often governed by terms of service agreements with service providers. These agreements can make it difficult for heirs to retrieve valuable information.
Password protection
Passwords protect many digital assets. Without knowing the passwords, family members or executors may struggle to access important accounts, such as online banking accounts.
Privacy concerns
Privacy laws add another layer of complexity. Service providers must comply with laws that protect user privacy, even after death. This can prevent them from sharing account details with family members, causing delays and frustration.
Pennsylvania state laws
Pennsylvania has adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which provides a legal framework for accessing digital assets. This simplifies the process of accessing digital assets, ensuring that fiduciaries have the authority to handle these assets just like physical property.
Importance of proactive planning
Proactive planning is essential. Individuals should include digital assets in their estate planning by listing all digital accounts, passwords, and access instructions. Naming a digital executor can also help streamline the process. Understanding these challenges highlights the importance of including digital assets in estate planning. It makes settling the estate much easier for families.
