Digital Assets and Your Florida Estate Plan: What Happens to Online Property After Death?
In today’s world, many valuable assets live entirely online—from cryptocurrency wallets to social media profiles and cloud-stored photos. Yet digital assets are often overlooked in estate planning discussions, which typically focus on physical property or financial accounts. Crafting a comprehensive Florida estate plan means accounting for all forms of property, including online accounts and digital assets.
What Are Digital Assets?
“Digital assets” generally include anything that exists in an electronic format. Examples could involve:
Cryptocurrency holdings (e.g., Bitcoin, Ethereum)
Online banking or investment accounts
Social media profiles (Facebook, Instagram, LinkedIn)
Email accounts (Gmail, Yahoo, Outlook)
Digital media purchases (eBooks, music, movies)
Online loyalty rewards or points from retailers or airlines
Website domains or digital business assets
Each platform or provider typically has unique terms of service, privacy rules, and access restrictions, which can create challenges when someone passes away.
Why Digital Assets Matter in Your Estate Plan
Financial Value
Cryptocurrency, domain names, and certain online accounts may hold significant monetary worth. Failing to include them in your plan could leave these assets inaccessible or unclaimed.
Emotional or Sentimental Value
Digital photos, personal email correspondences, or social media accounts may carry intangible importance for loved ones. Preserving or archiving this data may be just as crucial as distributing physical heirlooms.
Legal and Privacy Concerns
Under privacy laws and platform policies, your relatives or personal representative may not automatically gain access to your digital assets. Explicit instructions are needed to ensure they can access or manage these accounts.
Planning Steps for Digital Assets
Inventory Your Online Footprint
Make a list of every platform, account, or subscription service you use. Include usernames, two-factor authentication settings, and general data about the account’s content or value.
Incorporate Instructions in Your Will or Trust
Clearly designate how each digital asset should be handled. Some Florida residents utilize a revocable living trust to manage assets, including digital ones, in the event of incapacity or upon passing.
Authorize Access
Florida has adopted versions of the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), giving personal representatives some access to digital accounts. Still, you often need explicit language to allow them to retrieve, manage, or close accounts.
Consider Password Management
Safely store credentials in a password manager or an offline document. Provide instructions for how your fiduciary can access it if required.
Stay Updated
Digital footprints constantly evolve. Revisit your list of digital assets regularly, especially after opening new accounts or investing in new technologies.
Potential Challenges
Terms of Service: Many online platforms limit account access to the original user. If your instructions conflict with a provider’s policy, it can create complications.
Security Risks: Storing passwords in an insecure manner or distributing them without care can lead to fraud or identity theft.
Tax Implications: Cryptocurrency gains or losses may have specific tax implications if sold or transferred by your personal representative.
Conclusion
A robust Florida estate plan is no longer limited to bank statements and real estate deeds. Digital assets deserve the same attention to ensure seamless management or transfer. By inventorying your online presence, including specific authorizations, and storing credentials securely, you can protect both the monetary and sentimental value of your online world. When uncertain about laws or best practices, consulting a qualified attorney helps you navigate this evolving landscape while respecting Florida statutes on data privacy and fiduciary authority.
Disclaimer: This content is provided for informational purposes and does not constitute legal advice. No attorney-client relationship is formed by reading or responding to this material. For personalized guidance, consult a licensed Florida attorney. No aspect of this content has been approved by the Supreme Court of Florida.
