Years ago we saved photos in albums, music in CD’s (or tapes!) and
correspondence in letters and we saved all of that around our house for the
most part. But technology has changed all of that. Now, many of our personal
mementos are saved ‘digitally’ on our computers or hand held devices as well as
on social media websites and somewhere ‘in the cloud’ which even though we may
not understand how it works; we are glad that it does.
The value of these ‘digital assets’ can really add up. Some of those
digital assets might actually be income earning like a website that generates
revenue from advertising. Access to these digital assets often requires a logon
and a password that we may or may not have made a note about somewhere or shared
with a loved one. And, sometimes even though
we may not be aware ownership of these digital assets may not be completely
clear in a legal sense.
What are digital assets?
·
Hardware devices and the digital files stored on those devices
·
Email accounts including the content and attachments to those emails
·
Domain names and the files that are included in a website
·
Photo libraries, personal information and entertainment files
(music downloads)
·
Personal memories (photographs)
·
Personal records (health, financial, insurance records),
·
Career information( resumes, cover letters, email contacts)
·
Personal creative projects
and hobby files
Internet security company McAfee did a global study on digital
assets that was released towards the end of 2011. The research (provided by MSI
International) surveyed more than 3,000 consumers across 10 countries. There
were some interesting findings: .
·
Consumers placed an average value of $37,438 on the digital assets they
owned across multiple digital devices.
·
Regionally, North Americans had the highest perceived value of
their total digital assets with an average value of $52,154 (Canada $47,074)
·
25% of consumer Internet users own at least 5 devices per household
·
60% of consumer Internet users own at least 3 devices per household
·
41% of those surveyed spent more than 20 hours per week using a
digital device for personal use
·
27% those digital assets were considered “impossible to restore’ if
lost and were valued at $23,938 on average
Despite the evolving threats across all types of devices and and
the high value of the files stored that those surveyed put on their digital assets:
·
36% of those surveyed lacked any real protection across all of
those devices
·
40% of the those surveyed do not worry much about their protection
How much are your digital assets worth and …have you safeguarded
them?
·
How difficult would it be to gain access to your digital assets if
your computer or your personal records were lost?
·
What happens to these assets or your life online after you pass
away?
Whether they have financial value or are just of sentimental value,
estate plans really need to evolve to include these online properties.
Indeed, this is one of the fastest growing areas of estate
planning.
"Identify, inventory and value your digital assets. This will
minimize the burden on your attorney/executor as they may not be aware of the
existence of these assets. Doing so will also minimize the risk of losing
assets that may have both financial and sentimental value," Marlena Pospiech, Senior
Manager, Retirement planning strategy, BMO Financial
Group.
As is generally the case, Canada is behind
the US in terms of ‘trends’ and the law with respect to those trends and protection
of digital assets is no exception. The State of Virginia passed related legislation
last week. Approximately 6 states now have laws relating to digital assets;
whereas in Canada there is neither legislation nor any case law yet on the
books; just dialogue. As well, not every professional you deal with will ask
you about your digital assets. Therefore, if no instructions are left or alternative
arrangements made, a lot of digital assets will be left in ‘limbo’ as a result
of privacy legislation which will continue to protect those that have passed
away; which can lead to additional grief and stress.
So, it is highly
recommended that individuals inventory their digital assets and their digital
life online and provide access information and instructions about how they wish
those assets to be dealt with.....
Which is why we have a place to do just
that in Legacy Tracker
In terms of estate planning the following
considerations are some general guidelines:
1) Your will should recognize the fact that you have digital assets
and the fact that your executor has authority to access and control your
digital assets or assign those responsibilities over to someone whom you would
designate
2) Provide a written
inventory of all your digital assets that includes how you want to deal with
each of those assets and how your executor can access those assets (usernames
and passwords etc.)
A
good resource for learning more about digital assets and your digital existence
–now and later is www.thedigitalbeyond.com
