As digital assets become a larger part of daily life, they also complicate the probate process. Digital assets like online bank accounts and cryptocurrency can create challenges during estate settlement. Understanding how to manage these assets is important to avoid potential issues in probate.
Identifying digital assets
The first challenge in probate involves identifying digital assets. Many individuals do not maintain a list of their online accounts, making it difficult for executors to locate them. Digital assets include financial accounts, social media profiles, digital photos, emails, and cloud storage. Executors must identify these assets, access them, and decide whether to distribute or close them.
Legal hurdles
Ohio enforces specific laws governing access to digital assets after death. The Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) requires the deceased to provide clear permission in their estate plan for executors to access certain digital accounts. Without this permission, companies often deny access, citing privacy laws. These restrictions can lead to lengthy legal battles and delays in probate.
Managing digital assets
Proper planning avoids many complications. Creating a detailed inventory of digital assets, including usernames and passwords, serves as a key step. Individuals should include specific instructions in their wills or trusts. Grant the executors the authority to manage digital assets. Using a digital estate planning tool streamlines the process and securely stores login information.
Digital assets in estate planning
Effectively managing digital assets requires careful planning and foresight. By organizing and documenting these assets in advance, individuals can help their executors navigate the probate and estate planning process with fewer complications, ensuring the estate is handled according to their wishes.