As more of people’s lives and finances shift online, digital assets – including email accounts, online banking, social media profiles, subscription services and intellectual property uploaded to the Cloud – have become increasingly important.
If these assets are not properly accounted for in an estate plan, beneficiaries and executors may face challenges accessing or managing them after a person’s death, leading to delays and complications during the probate process. For example, without clear instructions or access information for these assets, executors may struggle to locate or manage them, leading to potential loss of valuable information or financial resources.
Practical concerns
Many online platforms have strict privacy policies that prevent unauthorized access, even by executors. Without proper legal authority or account access, family members or executors may be locked out of crucial accounts, unable to close them, manage financial resources or access important personal data.
In some cases, digital assets may be subject to specific terms of service agreements that dictate how they can be transferred or accessed after death. For instance, certain social media platforms have legacy contact features that allow someone to manage or memorialize an account after the account holder’s death. If no such provisions are made, these accounts may remain active, leading to ongoing subscription fees and/or privacy concerns.
It is worth noting that while New Jersey and many other states have enacted laws that provide guidelines for managing digital assets during probate, these laws still require specific planning. Without clear instructions, the court may need to step in, which can prolong the probate process for an untold length of time.
In the event that probate challenges arise as a result of concerns related to digital assets, it’s important for executors and personal representatives to seek personalized legal guidance. That way, these challenges may be resolved far more quickly than they otherwise might.