Over the past few decades, technology has drastically changed the way we interact with people and transact business. We accumulate valuable and significant electronic data in our smartphones, computers, and the cloud. The recent global pandemic further changed the way we do business and interact with each other.
For more than 30 years, we’ve experienced significant change. Just think back to the world of the 1990s:
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- In December 1992, the first text was sent. Back then, who would have thought that people would prefer typing over talking on their phone?
- In 1994, Amazon was founded for the sole purpose of being an online bookstore.
- 1995 was the advent of Windows95 – the base of the modern desktop experience.
- 1996 brought us handheld personal assistants in the form of the PalmPilot—a device that was not part of your cell phone, but for some, replaced a paper planner.
- In 1998, Google was founded. If you are not sure about the impact of Google on modern times… “Google it.”
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This is just a flavor of what the 1990s had in store for those who lived through it.
Our world and technology have evolved significantly since then. As of April 2023:
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- The world’s population stands at 8.03 billion people.
- There are 5.48 billion unique mobile users.
- There are 5.18 billion internet users – 64.6% of the world population. (Compare that to the estimated 16 million users in 1995 – only 0.4% of the world’s population.)
- There are 4.8 billion active social media users around the world.
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So, why do these statistics matter, and what does it have to do with your estate plan? The statistics are examples of the world we live in today. Methods in the past to obtain bills, receive our financial information, and make payments are very different than the world of the 1990s. In today’s world, most people do some sort of online banking, receive their bills through email and make payments online.
When items were received via U.S. Postal Service, the personal representative of your estate could assess most of your estate assets and liabilities based upon documents you received in the mail. Today, many people have those items as online accounts with digital delivery; and who can access that information and all your online assets is governed by your state law and the adoption of the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA).
Under RUFADAA, you make the decisions surrounding who has access to your digital assets. While you can appoint someone to be your digital fiduciary, you may want to consider the type of account and who is best suited to manage it. Your personal representative or other fiduciary may easily access some accounts, while being provided limited access and management of other accounts. For example, fiduciaries typically have some power over computer files, web domains and virtual currency. Unless a user has given prior written permission, access is limited for accounts, such as email, text messages, and social media accounts.
According to the Uniform Law Commission, a group that promotes uniformity of laws between states, the RUFADAA “gives Internet users the power to plan for the management and disposition of their digital assets in a similar way as they can make plans for their tangible property.”
With many factors to consider and manage regarding digital assets and your estate plan, it can be a daunting task to embark upon. Contact Boulay’s Estate and Trust planning services team and we would be happy to assist you and your family with any questions you may have.
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