Estate Planning Should Include Digital Assets, Says Attorney with Gilfix & LaPoll
Palo Alto, CA (Law Firm Newswire) December 23, 2013 – A prominent estate planning attorney says digital assets need to be considered as part of estate planning.
“In today’s world, many people own significant assets that exist only in digital form, whether it is currency such as Bitcoin or items of sentimental value such as family photos,” said Palo Alto estate planning attorney Michael Gilfix. “There needs to be a plan to pass these assets on to one’s heirs.”
Gilfix said that online assets may also include such items as PayPal accounts, frequent flyer miles, iTunes libraries, online gaming accounts and many others. Any system for storing value electronically has the capacity to store significant assets that should rightfully be passed down to one’s heirs. However, without a plan in place, their value could be lost.
Each provider of online services has its own policy for access to user accounts. Some states have passed laws that grant the executors of an estate access to online accounts. Of course, access to the accounts is often simply a matter of knowing the basic account information, including the relevant passwords.
According to Gilfix, people engaged in estate planning should make a list of their digital assets, just as they take stock of their traditional assets. The list should include instructions for accessing the accounts, including usernames, passwords and a description of what is contained there. The list should be stored in a safe place, where the executor or personal representative of one’s estate will be able to find it (but an unauthorized person will not). The list may be kept with one’s attorney or in a safe deposit box. It can also be kept on an online data storage service; some specific services have been created for this very purpose.
In addition to username and password access, one’s executor or personal representative needs legal authority to use the accounts. Possessing the password to an online bank account does not mean that an executor can or should issue any payments. Estate planning documents, such as a will, and any trusts or durable power of attorney documents will dictate who has the authority to deal with online accounts.
Facebook: Like Us!
- Face Lifts, Dementia, and Elder Financial Abuse
It takes a lot for the California medical board to take any action against a physician. They recently revoked a concord, California plastic surgeon’s license when he went too far. He performed a face lift – a “lifestyle lift” – on an 82 year old gentleman with dementia and many other chronic illnesses. A two [...]
- Handling a Large Inheritance Can Be More Difficult than It May Seem
As they plan their estates, many people consider themselves fortunate if they are able to leave substantial inheritances to their children — and the children will be grateful to receive it. However, large inheritances bring certain responsibilities that can be overwhelming to some heirs, especially because they arrive during a grieving process. Those who inherit [...]
- How to Reduce Expenses After Retirement
A retirement savings plan and an estate plan go hand in hand. Proper planning can allow you to enjoy retirement in comfort and to leave an inheritance to children and grandchildren. However, in order for a retirement plan to be effective after you stop working full time, it is often necessary to make adjustments in [...]
- Damage Done by Explosive Growth in ADHD Diagnoses
A New York Times article by Alan Schwarz (December 15, 2013) explores the dramatic growth in diagnoses of Attention Deficit Hyperactivity Disorder (ADHD). His timely and revealing article explains the role the pharmaceutical industry has played in this phenomenon over the last twenty years. The pharma industry has been successful. In 2002, there were well [...]
- 529 College Savings Plans Can Be Incorporated Into Estate Plans
The college savings plans known as “529 plans” are an excellent way to save money for your child’s college education. Although contributions to the plans do not receive any federal tax breaks, the money withdrawn is not taxed, so any income earned within the plan is free from federal taxes and California state taxes. California’s [...]