Is Your Estate Plan Ready for the Digital Age?

While substantial portions of personal data are now stored digitally, many people don’t keep tabs on their digital records or under­stand the potential financial or senti­mental loss if their assets become lost or inaccessible.

If you haven’t properly addressed your digital assets in your estate plan, there’s a good chance most of those assets will be lost forever when you pass. And without proper estate planning, simply locating and accessing your digital assets can be a major headache for your loved ones. If they can find your assets, doing so could violate privacy laws or the terms of service governing your accounts.

A well-drafted estate plan addresses the management and distri­b­ution of digital assets and relieves the admin­is­trative burden on fiduciaries.

So, how much do you know about protecting your digital assets? Take this 10-question quiz to find out.

1. What is a digital asset? 
   1. An electronic record in which an individual has a right or interest
   2. Online data with no personal or monetary value
   3. An individual’s tangible assets
   4. An under­lying asset or liability
      
2. Digital assets include digital property with both monetary and non-monetary value. 
   1. True
   2. False
      
3. Which of the following are considered digital assets? 
   1. Personal email, commu­ni­cation, social media, and other online assets
   2. Electronic files, photos, videos, appli­ca­tions, and infor­mation stored on physical devices
   3. Money management, financial accounts, and digital assets related to a business
   4. All the above
      
4. Which of the following is not a reason to include digital assets in an estate plan? 
   1. To replace the tradi­tional but outdated manila envelope, file folder, binder, or safe deposit box containing the infor­mation needed to admin­ister a decedent’s estate
   2. To preserve the inherent personal or emotional value of assets such as family photos or videos, email accounts, and social media posts
   3. To compromise the security of a digital estate by sharing personal data
   4. To make admin­is­tering the estate easier
      
5. A uniform system of dealing with digital assets has arisen at the state level. The law is known as the 
   1. Digital Defense Act
   2. Media Protection Act
   3. Revised Uniform Fiduciary Access to Digital Assets Act
   4. Digital Planning Access Act
      
6. The Revised Uniform Fiduciary Access to Digital Assets, or “Uniform,” Act: 
   1. Allows distri­b­ution of private digital assets as a fiduciary see fit
   2. Provides the legal authority for a fiduciary to manage a user’s digital assets in accor­dance with the user’s estate plan
   3. Encourages friends and family to manage a decedent’s digital assets
   4. Locks and closes all a decedent’s digital assets
      
7. An autho­rized digital fiduciary can: 
   1. Access and manage digital assets on behalf of the decedent
   2. Plan and execute an entire estate plan
   3. Delete and destroy digital assets outside of the decedent’s wishes
   4. All the above
      
8. There are two signif­icant federal laws that users and their digital fiduciaries should consider. They are: 
   1. The Digital Protection Act and the Autho­rized Asset Plan Act
   2. The Multi­media Management Act and the Internet Commu­ni­ca­tions Act
   3. The Personal Protection Act and the Public Access Act
   4. The Computer Fraud and Abuse Act and the Stored Commu­ni­ca­tions Act
      
9. What happens if a user doesn’t provide arrange­ments for a digital asset? 
   1. Online assets will be deemed inaccessible
   2. The digital asset will become public domain
   3. The provider’s terms of service will apply
   4. The digital asset will be deleted or destroyed
      
10. What steps should be taken to incor­porate digital assets into an estate plan? 
    1. Identify and secure all digital assets
    2. Choose and authorize a digital fiduciary
    3. Decide what to do with the digital assets after death
    4. All the above
       

You can check your answers below. How did you fare?

Even if you scored a 10, it’s good to remember that estate planning and probate laws vary among states, and laws regarding digital assets and cryptocur­rency (and how they factor into estate planning) are contin­ually evolving. If you have compli­cated digital assets, we recommend finding an estate planning attorney in your state to get some legal advice.

Answers:

1. A
2. A
3. D
4. C
5. C
6. B
7. A
8. D
9. C
10. D