When planning which assets you will leave to your family and friends, clients always think of the jewelry, artwork, and antiques they own but often forget about digital assets like Facebook accounts, Snapchat, Bitcoin, or other similar property. So much banking is conducted through online accounts including money transfers, so records of such transfers, are more common through vendors like Venmo than written checks.
Many pictures are stored on digital formats as disposable cameras become a thing of the past. These assets, while not financially significant, are irreplaceable and hold sentimental value that would be devastating if lost. The ability for family and friends to access your computer, various electronic files, and social media accounts that hold many of the memories is just as important as naming the beneficiary of your bank account.
Other investments like Bitcoin and other cryptocurrency create new avenues for financial growth, but also need careful planning to be passed on. Cryptocurrencies are currently treated like personal property rather than an online bank account by the IRS. Unlike a bank account, this means that your bitcoin investment could have a step-up or step-down basis, which can have significant tax consequences. Often, such accounts do not have a way to make a beneficiary designation and if loved ones cannot access your account, those funds are gone forever.
The best way to handle digital assets in your estate plan is to leave a written log of what you own, where it is, and how to access each account. Different states have different policies on access to digital accounts after the owner’s death, and rather than fighting in court over access rights, leaving all relevant information to loved ones is a guaranteed and headache-free way to allow those assets to be managed after your passing. Georgia passed the Uniform Fiduciary Access to Digital Assets Act in July of 2018, which provides access to digital accounts via a Financial Power of Attorney form, a Will, a Trust, or other record of disclosure. Digital assets have a much higher risk of simply disappearing into the ether, but if planning is done correctly, they can be some of the easiest, and most cherished, assets to give to loved ones.
At Grissom Law, LLC, we work with clients with various assets and keep up to date with digital law as well as planning for your tangible property. Let us help you plan for the best way to manage and pass along all property you own.
Disclaimer
This Blog/Web Site is made available for educational purposes only as well as to give you general information and a general understanding of the law, not to provide legal advice. By using this blog site you understand that there is no attorney client relationship between you and Grissom Law, LLC.