Sand Hill's Chief Investment Officer, Brenda Vingiello, CFA, joins Jenny Harrington on “Halftime Report” to go over their most recent portfolio moves. Brenda's commentary begins
Estate Planning for Your Digital Assets
Published Date : April 26, 2018
As our lives are increasingly spent online from bill pay, to email and blogs to Facebook and Instagram, have you thought about what happens to your digital assets when you die? How will your successor trustee, executor or loved ones gain access to important records or treasured photographs stored in a vault in the cloud? What happens to your Bitcoin or money left in your iTunes account? Including these digital assets, some with only sentimental value and some with real financial value, in your estate plan is becoming increasingly important. According to a report by IBM, 90% of all the data in the world has been created in only the last two years.¹ This trend is not likely to slow down anytime soon, so your digital footprint is likely to continue expanding right up until the day you die.
In California, the Revised Uniform Fiduciary Access to Digital Assets Act (AB-691) provides guidance over the disposition of digital assets and electronic communications to a designated surviving fiduciary. Information contained in an online platform like Google or Facebook is typically controlled by the company that stores it. For that reason, you should ideally provide legacy instructions or designate a surviving fiduciary within the online platform itself. Some sites now provide tools to accomplish this. If no such designations are made at the site themselves, but you have designated a fiduciary in your will or trust, this new bill should allow that person access to the data once the required documentation such as a death certificate and copy of the trust has been provided. If no designation is made at all, the courts may be left to determine if a fiduciary should be granted access using the terms of service you agreed to when you established the account. Yes, those long paragraphs of legalese you likely didn’t read before clicking “I accept” may likely determine what happens to your personal information.
While you may not care about what happens to your LinkedIn account when you’re gone, you may care about your Bitcoin or other assets with real monetary value. For example, since Bitcoin exists only in virtual and encrypted form, it is the ultimate digital asset with its own set of challenges for heirs. Without the necessary encryption key and clear instructions on how to use it, your Bitcoin could become lost forever – the modern day buried treasure. Digital currencies have been in existence for almost a decade but certain elements such as holding the assets and encryption key securely has not to date been built with sufficient infrastructure to ensure the safety of these assets. If you don’t trust your heirs to have the key now, and you might not since there is no way to prevent theft while you’re alive, you could store it in your safety deposit box or another similarly secure location until your death. The use of third-party vendors such as Coinbase2 is another option for encryption key storage, and they allow joint accounts, which could make the transfer to an heir easier.
In the same way you’ve thought about what should happen to your tangible assets when you pass, planning for your digital assets deserves your time and attention. But where to start? First, make a list of all online accounts and passwords and indicate the action that should be taken with each (i.e. delete, download contents, etc.) and store it in a secure location. Second, discuss with your estate planning attorney on how to include these assets in your estate plan. Taking these basic steps now can make it easier for those who survive you, and also help preserve both your legacy and your privacy.
1 IBM Marketing Cloud “10 Key Marketing Trends for 2017”
2 Sand Hill Global Advisors, LLC (“SHGA”) is a Registered Investment Adviser with Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Coinbase is a separate entity and not affiliated with Sand Hill Global Advisors, LLC, and as such, SHGA neither represents nor endorses any product named in this article.
Articles and Commentary
Information provided in written articles are for informational purposes only and should not be considered investment advice. There is a risk of loss from investments in securities, including the risk of loss of principal. The information contained herein reflects Sand Hill Global Advisors' (“SHGA”) views as of the date of publication. Such views are subject to change at any time without notice due to changes in market or economic conditions and may not necessarily come to pass. SHGA does not provide tax or legal advice. To the extent that any material herein concerns tax or legal matters, such information is not intended to be solely relied upon nor used for the purpose of making tax and/or legal decisions without first seeking independent advice from a tax and/or legal professional. SHGA has obtained the information provided herein from various third party sources believed to be reliable but such information is not guaranteed. Certain links in this site connect to other websites maintained by third parties over whom SHGA has no control. SHGA makes no representations as to the accuracy or any other aspect of information contained in other Web Sites. Any forward looking statements or forecasts are based on assumptions and actual results are expected to vary from any such statements or forecasts. No reliance should be placed on any such statements or forecasts when making any investment decision. SHGA is not responsible for the consequences of any decisions or actions taken as a result of information provided in this presentation and does not warrant or guarantee the accuracy or completeness of this information. No part of this material may be (i) copied, photocopied, or duplicated in any form, by any means, or (ii) redistributed without the prior written consent of SHGA.
Video Presentations
All video presentations discuss certain investment products and/or securities and are being provided for informational purposes only, and should not be considered, and is not, investment, financial planning, tax or legal advice; nor is it a recommendation to buy or sell any securities. Investing in securities involves varying degrees of risk, and there can be no assurance that any specific investment will be profitable or suitable for a particular client’s financial situation or risk tolerance. Past performance is not a guarantee of future returns. Individual performance results will vary. The opinions expressed in the video reflect Sand Hill Global Advisor’s (“SHGA”) or Brenda Vingiello’s (as applicable) views as of the date of the video. Such views are subject to change at any point without notice. Any comments, opinions, or recommendations made by any host or other guest not affiliated with SHGA in this video do not necessarily reflect the views of SHGA, and non-SHGA persons appearing in this video do not fall under the supervisory purview of SHGA. You should not treat any opinion expressed by SHGA or Ms. Vingiello as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of general opinion. Nothing presented herein is or is intended to constitute investment advice, and no investment decision should be made based solely on any information provided on this video. There is a risk of loss from an investment in securities, including the risk of loss of principal. Neither SHGA nor Ms. Vingiello guarantees any specific outcome or profit. Any forward-looking statements or forecasts contained in the video are based on assumptions and actual results may vary from any such statements or forecasts. SHGA or one of its employees may have a position in the securities discussed and may purchase or sell such securities from time to time. Some of the information in this video has been obtained from third party sources. While SHGA believes such third-party information is reliable, SHGA does not guarantee its accuracy, timeliness or completeness. SHGA encourages you to consult with a professional financial advisor prior to making any investment decision.
Other Posts By This Author
- – Home Sweet RV
- – The Basics of Long-Term Care Insurance
- – Roth IRA Conversion: 2023 May Be Your Year
- – Do I Really Need a Trust to Avoid Probate?
Related Posts
Recent Posts
