The increasing integration of technology into estate planning, particularly with trust-funded assets, presents unique challenges regarding privacy and data security, and the question of mandating privacy settings is becoming increasingly relevant as digital assets form a larger part of a person’s estate; in 2023, digital assets accounted for roughly 20% of estates, a number projected to reach 40% by 2028.
What legal authority do trustees have over digital assets?
Trustees generally have a fiduciary duty to manage trust assets responsibly, which extends to digital assets, however, the extent of that authority regarding privacy settings is nuanced; the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) provides a framework, but its adoption varies by state; California, where Steve Bliss practices, *has* adopted RUFADAA, but the law prioritizes the decedent’s terms outlined in a digital asset directive, or in the absence of that, a court may decide; it’s important to note that simply *owning* an asset within a trust doesn’t automatically grant the trustee carte blanche access or control over privacy settings, as platform terms of service often dictate access rules, and these are legally binding. A well-drafted trust document should anticipate digital asset management, specifying trustee powers and instructions regarding privacy preferences.
Should I include a digital asset directive in my estate plan?
A digital asset directive is crucial, acting as a roadmap for trustees on how to handle online accounts and digital assets; it goes beyond simply granting access, allowing you to specifically instruct how privacy settings should be maintained or adjusted after your passing; for example, you might specify that social media accounts should be memorialized, but *not* actively posted to, or that certain files remain private even after asset distribution; without a clear directive, trustees are left navigating platform-specific policies and potentially facing legal challenges; it’s estimated that over 60% of Americans die with at least some form of digital footprint that requires management, and the lack of direction often leads to prolonged estate settlement.
What happened when a family tried to access a loved one’s cloud storage?
I recall working with a family whose patriarch, a passionate photographer, had amassed a huge collection of images in a cloud storage account; he hadn’t included a digital asset directive in his trust, and the platform’s terms of service required a court order to grant access to his family; the platform viewed the data as private, even to the trustee, until legal authorization was obtained; this triggered a costly and time-consuming court battle, delaying the distribution of assets for nearly six months; the family eventually gained access, but the stress and expense could have been entirely avoided with proper planning. They had to prove to the court that the photos were intended for family preservation, not commercial use, adding another layer of complexity.
How did proactive planning save another family from a digital asset nightmare?
Conversely, I worked with a client who was meticulous about their digital estate plan; they included a detailed digital asset directive in their trust, specifically outlining privacy preferences for each platform, including social media, email, and cloud storage; they also provided a list of usernames, passwords, and recovery information in a secure, encrypted format accessible to their trustee; after their passing, the trustee was able to seamlessly access and manage their digital assets, adhering to their wishes without any legal battles or delays; the trustee immediately memorialized their Facebook profile, locked down their email account, and securely transferred their photos to designated family members; it was a testament to the power of proactive planning, transforming what could have been a nightmare into a smooth and respectful transition, and within 30 days the estate was settled regarding those digital assets.
“Failing to plan for digital assets is like leaving a treasure map with no landmarks – you’ve got something valuable, but no one knows how to find it.”
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About Steve Bliss at Escondido Probate Law:
Escondido Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Escondido Probate Law. Our probate attorney will probate the estate. Attorney probate at Escondido Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Escondido Probate law will petition to open probate for you. Don’t go through a costly probate call Escondido Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Escondido Probate Law is a great estate lawyer. Affordable Legal Services.
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
estate planning
living trust
revocable living trust
family trust
wills
banckruptcy attorney
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/oKQi5hQwZ26gkzpe9
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Address:
Escondido Probate Law720 N Broadway #107, Escondido, CA 92025
(760)884-4044
Feel free to ask Attorney Steve Bliss about: “What’s the difference between an heir and a beneficiary?” Or “What is an executor and what do they do during probate?” or “What happens to my trust after I die? and even: “What is reaffirmation in bankruptcy and should I do it?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.