In today’s digital world, our lives are increasingly lived online — from treasured family photos and sensitive information stored in the cloud to financial accounts managed through apps and revenue-generating blogs or YouTube channels. How will your loved ones access these valuable assets after you pass away?
In today’s ultra-connected world, digital legacy planning is a must for families who want to protect their intangible property and memories.
While many Arizona residents have wills or trusts in place, few consider what happens to their online life after death. Without a plan, those artifacts may be lost forever — or worse, fall into the wrong hands.
That’s why working with an experienced estate planning attorney to create a digital legacy plan is essential for protecting your family.
What Are Digital Assets?
Digital assets include any electronic records or accounts you own. Common digital assets include:
- Business or personal social media: Platforms such as Facebook, Instagram, X (formerly Twitter), LinkedIn, TikTok, and more can hold priceless memories, connections, and business interests.
- Digital photos and videos: Stored on cloud services (iCloud, Google Photos, Dropbox) or local devices, these are often irreplaceable family memories.
- Online banking and investment accounts: Access to crucial financial resources, retirement accounts, and brokerage platforms.
- Cryptocurrency and NFTs: Bitcoin, Ethereum, and non-fungible tokens represent significant financial value that can be easily lost without proper planning.
- Blogs, eCommerce, and domain names: Content, online shops, and intellectual property that could have a great deal of personal, professional, or monetary value.
- Gaming accounts: These profiles can contain virtual currency, in-game assets, or significant progress that a user may wish to transfer.
- Online shopping accounts: Amazon, eBay, and other platforms that may hold payment information, order history, and digital credits.
- Cloud storage: Google Drive, Microsoft OneDrive, and Apple iCloud often store critical documents, files, and personal data.
These digital elements are more than just data; they are increasingly intertwined with our financial well-being, personal memories, and even our professional identities.
Without a plan, they can become inaccessible, creating significant headaches and potential losses for your loved ones during an already difficult time.
When individuals who own cryptocurrency die without bequeathing access codes, these accounts can be lost forever due to the unique nature of cryptocurrency and its reliance on private keys. According to Investopedia, approximately 20% of Bitcoin funds are now unrecoverable, with millions of dollars in crypto disappearing permanently.
Why Arizona Families Need a Digital Estate Plan
Imagine your family being unable to access treasured memories, vitally important financial information, or even your social media accounts after you’re gone. Without considerable foresight, these possessions can be lost, locked, or even given to someone else.
Arizona Governor Hobbs signed H.B. 2749, which provides a process for digital assets to be deemed abandoned after a specific period, held for three years, and then sold, with 10% of the proceeds potentially going to the state’s general fund (after legislative approval)
Including comprehensive account access information in your estate plan means that your online presence is managed according to your wishes, whether that means preserving memories, saying goodbye to your customers or fans, or transferring digital properties to your designated heirs and beneficiaries..
Arizona Law: The Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA)
Arizona has adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), a law designed to help families manage digital assets after someone passes away or becomes incapacitated.
RUFADAA’s Digital Executor Law allows you to name a “digital fiduciary” in your estate documents (usually your executor or agent under a power of attorney). This has to be someone you trust to manage your online accounts exactly as you direct.
Key points about RUFADAA in Arizona:
- Authorizes access: Your executor or agent under a power of attorney can legally access and manage your digital assets if you include the proper language in your will, trust, or power of attorney.
- Online tools override documents: Some platforms, like Facebook, allow you to name a “legacy contact” through their own online tools. These designations take precedence over what’s written in your will or trust.
- Protects fiduciaries from prosecution: RUFADAA provides that your chosen representative won’t face criminal charges for accessing your digital accounts as long as they have the proper authority.
- Protects your privacy: The Act also prevents companies from disclosing the contents of a user’s email and social media accounts without the user’s consent.
This law ensures that your designated representative can manage your online accounts, but only if your estate planning documents are properly drafted. If they do not include clear legal instructions, your digital executor could be blocked by privacy laws or service provider policies.
Create a Digital Legacy Plan Today
Handling all of the various elements of estate planning can seem overwhelming. But by breaking it down into manageable steps, Arizona families can make sure their digital assets are secure and their wishes will be honored.
Start by taking a thorough inventory of your digital assets. You can’t plan for what you don’t know you have.
Next, choose your digital executor. This could be your main executor, a tech-savvy family member, or a trusted friend. You can even specify different people for different types of assets. For example, allowing your daughter to access your photos but not your private journals.
Document everything, and work with an Arizona estate planning attorney to update your will, trust, and power of attorney to include provisions for digital assets. Be specific about your wishes for each account or type of asset. Clear communication helps prevent confusion and makes it easier for your wishes to be carried out.
Digital accounts and platforms change frequently. Review and update your estate plan regularly.
It’s the perfect time to take action and ensure your online assets are protected, your wishes are honored, and your family is prepared for the future. Our compassionate advocates are here to offer invaluable guidance and support — contact us today!
