Take care to protect your digital assets

May 30, 2013

Take care to protect your digital assets

Article provided by Katherman, Heim & Perry
Visit us at http://www.khpyork.com

When people think about estate planning, they typically focus on what will happen to their home, car and other physical possessions. In fact, many people will outline specifically which possessions they wish to go to certain individuals upon their passing.

As more information is gathered and stored online, it is also wise for individuals to consider what will happen to their so-called digital assets. Digital assets can include a wide variety of valuables and information, including:
-Personal data on social media sites
-Frequent flier miles that have yet to be used
-Photographs
-Videos
-Songs and movies downloaded from sites such as iTunes
-Books downloaded for a device like a Kindle or Nook
-Email accounts
-Blogs

In addition, many people manage their bank accounts and stock portfolios online, using secured accounts to access the information. Individuals are also able to pay many of their bills online automatically, again by using secured accounts.

All of these digital assets have a value. According to a study conducted by McAfee in 2011, on average, Americans valued their digital assets at around $55,000 -- above the worldwide average of over $37,000. As most people would specify what to do with a car of such value in their will, the same should be true for digital assets worth that amount.

Take steps to protect your digital assets

The distribution of digital assets can be complex, not only due to differences in the law across the country, but also due to varying policies among different online organizations.

On a national level, the Electronic Communications Privacy Act of 1986 dictates what information online organizations -- such as Facebook -- are allowed to provide to individuals without first obtaining the account holder's permission.

Certain states -- including Pennsylvania -- have considered legislation that would facilitate the dissemination of online information following the death of a loved one. In Pennsylvania, House Bill 5580 would have allowed a personal representative to access an account holder's social networking sites, email accounts and text messages. Thus far, the bill has not been passed.

Meanwhile, individuals with an online presence should take steps to ensure their digital assets will be properly handled. As people will acquire a large number of passwords and be required to answer multiple "secret questions" to protect these valuable assets, keeping a record of such information in a safe, encrypted document may be a wise choice.

For anyone with digital assets, seeking the counsel of a skilled estate planning attorney is a wise first step to ensure all of your assets remain protected and are dispersed properly.