Estate Planning in a Digital World
A generation ago, a postman delivered your mail, you kept photos in albums, documents in file cabinets, and your money was generally in an account at the local bank. For most people today, a good part of their life is digital and online. This can include digital photographs, electronic investment and bank account statements, e-mails, social media accounts and so on. For many, their primary means of communication is e-mail or instant messaging, often through multiple accounts. They tweet about the latest happenings and they keep in touch with friends and colleagues through social networking sites. They store important information and family photos online and they pay their bills electronically. These so called Digital Assets have become a large part of most people’s day to day lives.
Because individuals protect their digital assets with passwords often known only to themselves, this can create problems when the account holder dies or becomes disabled because no one has a way to access these accounts. As a result, digital assets, including online accounts, information, documents, or media stored on one’s computer, can be either unavailable or totally lost. Some service providers like Apple and Google have explicit policies on what will happen when an individual dies, but most do not. Even when these policies are included in the terms of service, most people click-through these agreements without ever reading them.
While estate planning has traditionally not been an area where modern technology has had much impact, Indiana has in the last few years jumped to the forefront in adopting its legal system to work in an increasingly digital world. In 2016 Indiana enacted the Uniform Fiduciary Access to Digital Assets act. This law basically gives a guardian, executor, trustee or other person charged with responsibility for managing the affairs of another, with the right to access that persons digital assets when the owner dies or becomes disabled.
Effective July 1st of this year Indiana has amended it probate, trust and power of attorney statutes to allow for the electronic signing of will’s, trust agreements and powers of attorney. While pen and paper documents can still be drafted, this law allows for the electronic signing, witnessing and storage of these important estate planning documents. Indiana is now one of only two states that have addressed this issue which is starting to spread nationwide.
As the world becomes more and more digital and electronic, the need to adapt your estate planning to modern technology is ever more vital. First Merchants Private Wealth Advisors can help you navigate these new digital rules in your pursuit of a secure financial future. Please feel free to contact us if you have questions about managing your digital assets.
David Forbes, Director of Personal Trust
First Merchants Private Wealth Advisors products are not FDIC insured, are not deposits of First Merchants Bank, are not guaranteed by any federal government agency, and may lose value. Investments are not guaranteed by First Merchants Bank and are not insured by any government agency. This material has been prepared solely for informational purposes. First Merchants shall not be liable for any errors or delays in the data or information, or for any actions taken in reliance thereon. Any views or opinions in this message are solely those of the author and do not necessarily represent those of the organization.
