Digital Assets and Electronic Communications Include Digital Assets in Your Estate Plan
July 9, 2023
Nearly everyone owns some form of digital assets. Under the Pennsylvania Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) and the Maryland Fiduciary Access to Digital Assets Act (MFADAA), digital assets are defined as “an electronic record in which an individual has a right or interest.” These may include email accounts, social media accounts, digital photos, cloud-based storage accounts, and cryptocurrencies, to name a few.
Access to these assets can be troublesome when a loved one dies or becomes incompetent. Prior to the enactments of these Acts, Pennsylvania and Maryland had no guidance for individuals to transfer their digital assets, or for fiduciaries to access these assets.
Essentially, the purpose is to provide fiduciaries, such as trustees, power of attorneys and executors with the authority to access an individual’s digital assets and electronic communications. While many custodians typically have language set forth in their terms of service agreements (the small print that we rarely read and click to accept), no two are alike and some custodians have no provisions.
In some cases, custodians allow for the designation set forth by the user to designate a fiduciary. In cases where the custodian does not allow for this direct designation, then the user may --- in a Will, Power of Attorney, Trust, or other record --- allow or prohibit disclosure to a fiduciary of some or all of the user’s digital assets, including the content of electronic communications sent or received by the user.
For this reason, it’s essential to include digital assets in your individual estate planning. Maintain a list of digital assets along with account numbers and detailed records to assist your named fiduciary should the need arise.
Whether you are updating legal documents or starting new estate plans, it is always recommended you seek the advice of your attorney and/or trusted financial professional when planning for the future. Like other financial institutions with trust powers, ACNB Bank can assist in estate planning matters with experienced staff to serve as a professional fiduciary in the capacities of executor, trustee, and/or financial power of attorney for individuals in our community.
Estate planning can be overwhelming and isn’t always the highest priority in life. Give yourself peace of mind and consider reviewing your own estate plan this summer.
