The more we expand our use of social media – Facebook, Twitter, LinkedIn, etc. – and online sites that allow us to store information and conduct business – via photo storage websites, on-line banking and bill payment, Dropbox, PayPal, etc. – the more important it is to plan for these digital “assets.”  Also, the more we follow advice to make our passwords complex and keep them secret to improve the security of our on-line accounts, the more difficult it is for family members or others to access these accounts if necessary in the event of incapacity or death.  It is possible to plan for these assets in such a way that the security of these accounts is not compromised but those whom you trust can gain access to them when needed.  Make sure your Durable Power of Attorney contains adequate provisions to allow your attorney-in-fact access to your digital assets if you are not able to handle your own financial affairs.  Make sure your Will gives your Personal Representative similar authority, and provides instructions about what you want done with your digital assets and the digital devices you use to access them (computers, smartphones, etc.).  Finally, and despite all advice to the contrary, keep a written list of your passwords, and keep it updated and in a safe place.  Without that information, timely access to your digital assets may be impossible.   You can read more information on this topic here .  The Uniform Law Commission recently passed the Uniform Fiduciary Access to Digital Assets Act (UFADAA),  which will give fiduciaries the authority to access, manage, distribute, copy or delete digital assets.  This is now in the last review stage before being finalized and available to state legislatures to enact.  Even if Massachusetts does enact this law, everyone who has digital assets should be proactive about control over and disposition of these assets.  The next time you update your estate plan documents be sure to include provisions that speak to your digital assets.

Published August 2014