This SlideShare describes digital assets and estate planning.

1. Digital Assets and Estate Planning

2. • The Canadian Uniform Access to Digital Assets by Fiduciaries Act defines a
“digital asset” as “a record that is created, recorded, transmitted or stored in
digital or other intangible form by electronic, magnetic or optical means or by
any other similar means.”
• Digital assets are diverse in nature. For example, digital assets may include,
among other forms of electronic records or information, the following:
• Social assets: email and social media accounts, personal contact information,
and personal websites.
• Personal/sentimental assets: photographs, videos, manuscripts, music
collections, and other media documents.
• Business/Monetary assets: Online marketplace/vendor accounts, online
banking accounts, and digital currencies (such as Bitcoin or PayPal).
Introduction

3. • In today’s technical world, one’s online presence and data stored
electronically should be considered during estate planning and
administration.
• A 2013 study by McAfee suggests that Canadians value their digital assets
at an average of more than $32,000.00.
• Despite their significant value, digital assets are often neglected during the
estate planning process. A recent study by BMO Wealth suggests that 57%
of North Americans aged 45 and older have not included provisions that
address access to digital assets as part of their formal estate plan. The
result can be difficulty in locating and accessing digital assets or the
inaccessibility of these assets altogether.
Today’s Digital Asset Landscape

4. • The law as it relates to accessing digital assets varies by jurisdiction.
• Most American states have recently introduced legislation that makes it
easier for fiduciaries, such as attorneys or guardians of property or estate
trustees, to access digital assets.
• In 2016, the Uniform Law Conference of Canada introduced the Uniform
Access to Digital Assets by Fiduciaries Act (the “Canadian Uniform
Act”). None of Canada's provinces have yet adopted the Canadian Uniform
Act or enacted similar legislation.
• If implemented, the Canadian Uniform Act would confirm that the usual
powers of a person in a fiduciary role extend to digital assets. As it currently
stands, however, the authority of fiduciaries to do so in Canada may not be
recognized in all circumstances.
Digital Assets: The Law Today

5. • One of the most fundamental preliminary roles of an estate trustee is the
identification of all assets and liabilities of the estate. If an estate trustee is
not aware of their existence, digital assets may be neglected in the
administration of an estate, to the detriment of the estate beneficiaries.
• The estate trustee him or herself may also be prejudiced – he or she may be
able to claim additional compensation in respect of the value of digital
assets, or may be exposed to liability with respect to the failure to call in and
distribute digital assets.
• Access to specific assets may be limited by user and licensing agreements
in any event.
Issues Caused by Digital Assets

6. • Especially in the absence of laws that specifically provide fiduciaries with
access to digital assets, it is important that digital assets are considered as
part of the estate planning process.
• In its simplest form, a digital estate plan will authorize someone to administer
the testator’s digital assets and identify where these are stored and how they
can be accessed (including username and password details).
• If the estate trustee chosen to administer other estate assets is not
technologically savvy, it may be best to appoint a separate "digital estate
trustee".
• Similar issues can also arise while an individual who possesses digital
assets is incapable of managing those assets. Powers of Attorney can be
used to make it easier for an attorney for property to access digital assets so
that they can be managed for the benefit of an incapable person.
Digital Estate Plans

7. • When putting together a digital estate plan, it is advisable to consult a lawyer
to ensure that your intentions have been properly outlined and can be given
effect.
• For more information on how to plan for and protect your digital assets, you
may wish to contact Hull & Hull LLP or another trusted estates lawyer.
Conclusion

8. Thank you for reading!