Executor's Guide To Digital Assets

In previous blog and radio posts, I have introduced the topic of digital assets and outlined the four main types of digital assets:

1. valuable assets;
2. revenue generating assets;
3. cryptocurrencies; and
4. personal digital assets.

Executors are responsible for taking over the administration of a person’s assets after that person dies, and that responsibility extends to taking control of a person’s online presence, their digital assets and digital collections.

The first issue that will confront the executor is locating the digital assets and securing their online presence:

• What online accounts did they have?
• Did they have any websites or active social media accounts?
• Where did they store their digital photos and videos?
• Did they have money or credit online, such as a Bitcoin or PayPal account?
• Did they have their credit card information tied to online accounts, such as Amazon or Netflix?
• Can you access their contact information for friends and family?

Every year, the list of digital considerations will get a little longer. The executor can start with online searches and searches the deceased’s electronic and storage devices. If unsure, the executor can send inquiries to the various online service providers.

Sending inquiries leads us to the second issue. The executor may encounter access issues; without passwords, usernames and answers to security questions, you may not be able to access the person’s online account or electronic devices and computers. The modern executor may even need to hire a computer forensics expert to access the deceased’s important files, documents and digital assets. You may also need to confirm your authority as executor for the online service providers. Different companies have different requirements before they will release account information or data or let you access the account, such as providing copies of the death certificate and the will.

The third issue is the ownership and transferability of the assets. Many online services and accounts are non-transferable, or they are merely licences and not actually owned by the deceased. For example, you merely have a licence to the ebooks on your Kindle and your digital music collection on iTunes. Once you die, that licence is at an end and the right to those collections does not pass to your next of kin. In some instances, once you notify the service provider of the death, those accounts may be deleted.

On the other hand, the deceased may have intellectual property online that you want to secure and safeguard. If the deceased was a writer, photographer, musician, graphic designer, etc... they may have granted licences to use their work in exchange for royalties. As the executor, you will want to ensure the estate is collecting on amounts owing to the deceased for intellectual property. Another situation to consider is if the deceased operated a website that sold advertising space. The executor will want to check if the estate can continue to collect that revenue.

The final issue to consider is security. We have much of our personal information online and in digital format, part of the concern is for identity theft and part of the concern is for the sensitive nature of the information. What should happen with all of the deceased’s emails? You may have to clear off the search history or erase a tablet or device before you pass it along to the beneficiaries, or before you sell it. You may want to close out their social media accounts and take down posts and photos. The deceased may have their credit card saved to online accounts or there may be automated payments or other automatic actions taking place online. There may even be online contracts that need to be cancelled or fulfilled if they ran a website, sold online advertising space, sold goods online or provided content online.

Our digital lives are evolving faster than ever. The important thing for the executor to consider is that most estates will have at least some digital assets. If you don’t know where to start or what to look for, ask your lawyer for advice.