Bitcoin, Facebook and Your Estate Plan - Where does it all fit?
By now, it’s a trite point - the world has gone digital. The wealth of information stored online grows by the second, and now, practically every person has left behind some digital footprint, especially when it comes to social media. Further, the rise of various Cryptocurrencies (“crypto”) has presented an unprecedented level of risk when it comes to digital estate planning with your Estate Planning Lawyers in Brisbane. We all need to begin considering what digital impression we will leave behind when they die.
This article will outline two of the most significant components of digital Estate Planning that we come across, Social Media and Crypto, and present some options to prompt some initial considerations of risk and planning.
Social Media
Websites such as Facebook, Twitter, Instagram and LinkedIn are all websites which we are likely very familiar with. What may not be as well-known, however, is that some social media websites have legacy features that allow a person to decide how they wish their accounts to behave on their death. While many people may not value their social media accounts enough to give them much thought, photos, videos and messages which are not stored elsewhere may hold value.
Facebook - Perhaps the most flexible and comprehensive social media website when it comes to legacy features, Facebook allows a person to memorialise, or permanently delete their account upon their death. Users may elect a “Legacy Contact”, a trusted person who is authorised to manage a deceased person’s account. The user can be quite specific in determining their Legacy Contact’s authorisations, such s a combination of posting or updating the deceased’s profile, reading messages or making changes to their friend list. In the absence of any directions relating to a Facebook account, the “Digital Executor” under a person’s Will has the same powers as a legacy contact.
Twitter - Twitter’s features are less robust than what is provided by Facebook. Twitter allows an immediate family member, Executor or other person authorised to act on behalf of the estate, to request that the deceased’s account be deactivated. Unfortunately, this is the only procedure in place. Twitter does not have any legacy feature or otherwise to allow a person to access a deceased’s account.
For some, keeping valued social media passwords sealed away with a Will will ensure that an Executor or Administrator has the ability to follow specific wishes when dealing with social media accounts.
Cryptocurrency
There is certainly no shortage of opinions and rumours on the viability of cryptocurrency. However, one thing is for sure, there is a lot of money tied up in cryptocurrency around the world, with most estimates totalling the amount of money in crypto exceeding the trillions. If someone forgets about any other kind of asset when making a Will, it will be dealt with by the laws of intestacy, which means that the asset will likely pass to that person’s spouse or children (in Queensland). However, if crypto is not properly dealt with in an Estate Plan, it may be lost forever (For an extreme example of lost crypto, see the case of Gerald Cotten by clicking here)
A good starting point is that for Estate Planning purposes, crypto is an asset, and therefore is able to be treated by a Will. However, complications arise from the practicalities of actually accessing the crypto and distributing it according to the deceased’s directions. Part of the appeal of these assets is their security benefits, which means that another person, such as an Executor, may not even be aware of their existence.
Many crypto exchange platforms, such as Coinbase, have their own procedures for allowing Executors or Administrators access to a deceased’s crypto wallet. As is the case for social media, the procedure varies from company to company, and crypto owners need to do their own research in formulating their plans.
Another way for owners to securely ensure that their crypto passes according to their wishes is to make their appointed Executor aware of the asset, which may include where it is held. Some Will-makers will record their keys (which grant access to the digital wallet) on a piece of paper, or an encrypted USB, and seal it with their Will.
For some, the appeal of crypto is its volatility - the possibility that any given coin will skyrocket at a moment’s notice and make them rich. However, this volatility means that even if someone holds a negligible amount of crypto, it could increase tenfold, before or after their death, so they should consider putting a plan in place.
When formulating an estate plan, it’s easy to forget about digital assets. However, where assets are tied up in crypto, online bank accounts and other digital mediums, a well-rounded approach is essential. For a holistic, secure and future-proof Estate Plan, consider booking a no-obligation consultation with Direct Lawyers. Working with an expert lawyer to handle these matters or update your Will is crucial when planning for your future are risky and can become expensive in the long run.
You can read more about other important elements of Estate Planning with this related article:
Joint Tenants Vs Common Tenants and their effect on your Estate Plan