Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Monday, March 21, 2011

Estate Planning for Digital Assets

Digital-Key-1216373
Gerry W. Beyer (Governor Preston E. Smith Regents Professor of Law, Texas Tech University School of Law) and Kerri Griffin (2011 J.D. Candidate, Texas Tech University School of Law) recently published their article entitled Estate Planning for Digital Assets, Est. Plan. Dev. for Tex. Prof., Apr. 2011, at 1. The abstract available on SSRN is below:

For hundreds of years, we have viewed property as falling into two major categories – personal property and real property. Personal property is traditionally further divided into tangible personal property, meaning items you can see or hold, and intangible personal property, meaning items that lack physicality. Recently, a new subdivision of personal property has emerged that many label as “digital assets.” There is no real consensus about the property category in which digital assets belong. Some say they are intellectual property, some say they are intangible property, and others say they can easily be transformed from one form of property to another with the click of a “print” button. In actuality, some accounts that we consider “assets” are simply just licenses to use a website’s service that generally expire upon death.

While estate planners have perfected techniques used to transfer types of property that have been around for a long time, most estate planners have not figured out how to address the disposition of digital assets. It is important to understand digital assets and to incorporate the disposition of them into clients’ estate plans.

This article aims to educate estate planning professionals on the importance of planning for the disposition of digital assets as well as how to do so. In addition, this article provides an overview of current deceased-user policies of common online accounts and services offered by online afterlife companies to aid in the planning process.

https://lawprofessors.typepad.com/trusts_estates_prof/2011/03/estate-planning-for-digital-assets.html

Articles, Estate Planning - Generally, Technology | Permalink

TrackBack URL for this entry:

https://www.typepad.com/services/trackback/6a00d8341bfae553ef0147e35b8a37970b

Listed below are links to weblogs that reference Estate Planning for Digital Assets:

Comments

Great article. I have done a more extensive comparison of the survivorship clauses in "digital assets" and while some of the major ones are staring to deal with the death of the owner, most still do not and the licenses expire upon death. As you stated, a will cannot deal with an asset that does not survive death.

I have yet to see a commercial product that actually deals with the transfer or right to use the asset without creating liability to the estate after death properly. I am working with a group who appears to be approaching the subject correctly and will send you more information on it when the project is completed.

Thanks again for your insight and helping others to understand a problem and set of assets that is being largely ignored by most estate planners and consumers

David Goldman
http://www.FloridaEstatePlanningLawyerBlog.com/

Posted by: Florida Estate Planning Lawyer, David Goldman | Apr 12, 2011 7:48:57 PM

Post a comment