Securing Digital Assets and Online Accounts During Probate

By Stokes McMillan Antunez Martinez-Lejarza P.A. on November 27, 2023

Digital Assets and Online Accounts During Probate

The prevalence of digital assets and online accounts has increased exponentially in recent years. From social media to online banking, most people have some form of digital footprint. This can cause complications when a person passes away if the proper estate planning is not in place. During probate, the deceased’s digital assets and accounts need to be properly handled to avoid security risks, prevent identity theft, and ensure the assets are transferred according to the person’s wishes. A probate lawyer can provide guidance on the best practices for securing digital assets during this process.

Stokes McMillan Antúnez Martinez-Lejarza P.A. is a full-service Florida trusts and estates law firm providing services including, but not limited to, probate, estate planning, trust & estate administration, and trust and estate litigation. If you have any questions or wish to hire our firm, please contact us.

What Are Considered Digital Assets?

Digital assets refer to any online accounts, intellectual property or data that exist in electronic form. This can include:

Social media accounts like Facebook, Twitter, LinkedIn
Email accounts and contacts
Online banking and financial accounts
Domain names and websites
Photos and videos stored digitally
Music, ebook or software licenses
Cryptocurrency wallets
Rewards programs like airline miles or credit card points

Essentially any online presence or data that has value could be considered a digital asset. Even accounts with no financial value often hold sentimental value for loved ones.

Challenges of Handling Digital Assets in Probate

Without specific estate planning guidance, digital assets can fall through the cracks during probate. Some key challenges include:

Access and Security

Passwords, security questions and multi-factor authentication prevent easy access. This can cause assets to be lost if heirs can’t gain entry.
Account access may be automatically terminated when the owner dies. Data could be permanently lost.
Lack of access also prevents closing accounts to avoid continued charges.

Privacy Concerns

Digital accounts contain private information heirs may not be meant to see.
Closing accounts or accessing data could violate privacy laws.

Complex Transfers

Unlike physical assets, transferring digital assets is often not straightforward. Policies vary widely between platforms.
Beneficiaries may not easily establish ownership to claim assets, like domain names or cryptocurrency.

Jurisdiction Issues

Many online platforms are based internationally, causing legal confusion on applicable probate laws.

With an average person having over 25 online accounts, coordinating their digital estate is complex.

Importance of Digital Asset Planning

To avoid complications, planning for digital assets should be part of any comprehensive estate plan. Steps to take include:

Making a detailed inventory of all digital accounts and assets.
Reviewing account holder agreements and estate planning policies for each platform.
Assigning account access and naming beneficiaries directly with asset holders when possible.
Providing login details and passwords to chosen executors through password managers or stored securely.
Giving specific instructions for handling accounts – closing, memorializing or transferring.
Authorizing someone to administrate digital assets through power of attorney.

Recording digital asset wishes clearly in your will and estate documents adds further legal power. It also helps prevent assets being lost, mishandled, or left in limbo during probate.

Securing Digital Assets During Probate

When administering a probate estate that contains digital assets, extra care should be taken to avoid security risks. Consider these best practices:

Get Legal Authority

Work with the estate attorney to establish legal authority to manage digital assets through executorship, trusteeship or power of attorney. Formal court orders may be required for certain platforms.

Request Account Termination

Contact asset holders directly and request account termination due to the death of the owner. Provide a death certificate and will or court order as needed. Avoid simply abandoning accounts.

Conduct Audits

Search for any unknown assets through browsing history, financial records and devices. Use asset inventory lists if provided.

Change Credentials

Immediately change account passwords and security questions. Disable any biometric logins attached to the deceased. Enable multi-factor authentication wherever possible.

Remove Auto-pay

Cancel any automated recurring payments or transfers set up. Stopping financial flows can prevent further fraudulent access.

Update Contacts

Inform any digital contacts of the death and provide alternative contact details if ongoing account access required.

Review Content

Responsibly review any sensitive account content that could impact heirs or estate matters. Some online content may need archiving or removal.

Transfer Assets

Follow owner’s wishes and platform policies regarding asset transfers. Some accounts can be memorialized or transferred to beneficiaries with proper procedures.

Sell Accounts

Accounts with financial value can sometimes be sold to third parties after removing personal data. This includes websites, frequent flyer miles or cryptocurrency wallets.

Using a Probate Lawyer

A probate lawyer has the knowledge to handle all aspects of securing digital assets during estate administration. Benefits of legal guidance include:

Knowing the right protocols and authorization needed for each digital platform.
Legally compelling compliance from asset holders.
Identifying any digital assets that may have been overlooked.
Valuing digital assets and including them in the estate inventory.
Avoiding liability risks in handling sensitive accounts and data.
Transferring assets according to all legal and ethical standards.

This assistance ensures all digital accounts are properly handled and assets are securely transferred to rightful heirs.

Frequently Asked Questions

1. What authority does an executor have over digital assets?

An estate executor has the legal right to take control over a deceased’s digital assets during probate. However, specific authorization may be needed from asset holders.

2. How can you find someone’s digital accounts after death?

Searching devices, records, and speaking to family can uncover accounts. An estate attorney can also request records legally through subpoena or court order.

3. Who inherits digital assets with no named beneficiary?

If no beneficiary designated, digital assets will go to any joint account holder or be distributed under probate like other property.

4. Can you sell or delete a deceased person’s social media accounts?

Accounts belong to platforms, but content can be archived. Memorializing, deleting or selling accounts depends on policies. Authorized users can close accounts.

5. What happens to unclaimed digital assets after death?

Unclaimed digital assets may be lost, stolen via hacking, or eventually transferred to applicable state unclaimed property funds. Proper administration prevents this.

Selecting a Probate Lawyer

With thoughtful estate planning and skilled legal guidance, digital assets can be properly secured and transferred to heirs during probate. This protects their value, privacy, and legacy. Discuss your digital asset estate plan with a probate attorney to ensure your online footprint is in good hands after you pass.

DISCLAIMER

This article was partly generated by the use of artificial intelligence or AI, and is provided as general information for educational purposes only. This article is not intended to provide specific legal advice, and should not be relied upon as a substitute for competent advice from a licensed attorney. To speak with one of our attorneys all you have to do is click here. If you’re interested in more in-depth ruminations on this area of the law written 100% by a live human being, visit the Florida Probate & Trust Litigation Blog by going to the home page for firm partner Juan Antunez.