Effective Management of Your Online Assets Critically Important for Your Digital Estate Plan

Ask yourself - what will happen to your Twitter account when you pass on? What about your Facebook account and Pinterest Board? What about your photos shared on a variety of social media platforms? These are important questions that need to be answered when planning your estate because your digital assets need to be part of that plan. Think about this - between 2012 and 2014, humans generated more data than in all of human history and the pace of that growth is only accelerating. Law Needs to Catch Up with Groundbreaking Technology There is an established set of laws for managing hard copy documents and other physical property (e.g., real estate, automobiles, etc.) when someone passes on. However, laws and regulations concerning the effective management of digital assets is far more vague. Courts have only recently began attempting to figure out how to handle assets based on digital technology. Trend in the Courts Leaves Individuals...

17 December

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Should You Adopt the Zuckerberg Strategy and “Donate” to an LLC?

Posted by Bobby Feisee

in Current Events

Facebook founder and CEO Mark Zuckerberg made headlines after announcing that he would be “donating” the bulk of his $45 billion fortune to charity. In some corners, Zuckerberg was derided since his “donation” was to a Limited Liability Company, as opposed to a charitable trust or actual charity, according to the Washington Post. The Zuckerberg-Chan Initiative (the LLC) will receive $45 billion worth of Facebook shares that Mr. Zuckerberg owns. So, in reality, no real charitable donation was made. Though, Zuckerberg has publicly stated that his LLC will focus on important charitable and public causes such as curing disease, advancing education reform, and so forth. Important question – is “donating” money to an LLC a wise estate and/or business strategy for you to consider? Answer: possibly. An LLC is a pass-through entity offering few tax benefits for Mr. Zuckerberg or his charitable endeavors. He may benefit from the timing of making estimated tax...

10 June

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Naming a “Techexecutor” to Manage Your Online Accounts

Posted by Bobby Feisee

in Current Events

People who have a Facebook account today could very well have a Facebook account up to the day they die. Facebook has become so engrained in our societal fabric that your online profile is akin to a part of your overall identity. So what happens when you die? Who manages, or takes down, your online identity? Well, Facebook has now given you the power to determine who makes that decision. Let’s call them you “Techexecutor.” Facebook will begin allowing its members to designate what they call a “legacy contact” to manage parts of your Facebook account posthumously, according to the Wall Street Journal. Though, you can also choose to have your profile deleted entirely. Making such a decision now may seem somewhat morbid and depressing, but it gives you the ability to address an important estate issue that routinely causes friction and potential emotional trauma. In fact, prior to instituting...

23 May

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Dealing with Digital Assets – A Growing Need

Posted by Bobby Feisee

in Bobby's Blog

If a loved one suddenly passes away, family members, or the estate planning attorney for the decedent, have to organize the decedent’s assets. The usual assets that come to mind include the decedent’s home, vehicle, IRA, checking account, family heirlooms, etc. However, a growing need is finding and organizing the decedent’s digital assets. Certain digital assets can be overlooked, or even lost, during the settlement of an estate. These online accounts are a new class of personal property that may have monetary worth in addition to sentimental value. According to a survey by McAfee, the average internet user has nearly $40,000 in unprotected digital assets. Membership in online loyalty programs have increased more than 26 percent over the past two years and the value is estimated at 2.65 billion, according to the 2013 Colloquy Loyalty Census. This means there may be billions of dollars worth of rewards that may be...

29 August

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Digital Assets in Your Estate: Are You Prepared?

Posted by Bobby Feisee

in Bobby's Blog

[caption width="210" align="alignleft"] Image Courtesy of Petervan's Blog[/caption]Do you have a plan for who will manage your Facebook account, Twitter account, Ebay business, Spotify account, etc.? If you answered no, it’s okay; not many people do. The issue of what happens with “digital assets” and accounts after a loved one passes away is growing in importance with estate planners. It makes sense considering our lives are becoming more and more digitized. A recent study showed that many people value their digital assets at an average of nearly $55,000. Beyond the potential monetary value of your digital assets in your estate, there are other important issues such as privacy, security and legacy planning. It’s a sad, but true fact, that laws tend to lag behind technology, so current statutes and case law are not very helpful in addressing this issue and/or providing guidance for how to properly incorporate digital assets into...