Planning for Digital Assets in Your Texas Estate Plan

Our lives in Central Texas, including Waco, Temple, Belton and Georgetown are filled with digital connections, from photos in the cloud to online bank accounts. Our digital footprint holds sentimental and financial value but is often an overlooked part of our legacy. A traditional will, which focuses on physical property, may not give your loved ones the authority they need to access these accounts after you’re gone. Without a clear plan, your family could face frustrating challenges, and your digital legacy could be lost forever. We’re here to help you understand how Texas law addresses this modern challenge.

What Are Digital Assets?

Digital assets are any electronic records or information. This includes a wide range of things that we use every day. They can be financial, like online bank accounts, investment portfolios, and cryptocurrency. They can be personal, like social media accounts, email, and photos stored in the cloud. They can also be intellectual property, such as blogs, websites, and domain names.

Many of these assets are protected by passwords and security protocols that prevent anyone from accessing them. When you sign up for these accounts, the Terms of Service agreements you agree to state often that they are for your use only. This means that even your spouse or children may not have the legal right to access them, even with a will or power of attorney. This is where Texas law provides a clear framework.

The Texas Law on Digital Assets

Texas’s law on digital assets, called RUFADAA, gives a legal path for an executor or trustee to manage a person’s online accounts. The law balances a person’s privacy with the need to settle an estate. It creates a clear order for access, prioritizing any online tools you’ve used, like a legacy contact on a social media site. These online settings take priority over instructions in your will or trust, so it’s vital to coordinate your entire plan. Your will or power of attorney determines a fiduciary’s access if a service doesn’t have an online tool. Without a plan, a company’s terms of service usually dictate access, often leaving very little for your family to handle.

Why a Digital Asset Plan Is So Important

Leaving a clear plan for your digital assets can save your family time, money, and stress. Without instructions, your loved ones may not even know which online accounts you have, let alone how to access them. They could be locked out of sentimental items like family photos or miss out on financial assets like a cryptocurrency wallet or online bank account.

The challenge is often gaining access to the information. For example, if you own cryptocurrency, it is not managed by a traditional bank. The ownership may be tied to private keys; if those keys are lost, the assets may be lost forever. We help our clients create a clear inventory of their digital assets and provide a secure way to pass on the necessary information.

Steps to Take in Your Texas Estate Plan

Creating a digital asset plan is a simple but crucial part of the estate planning process. We guide our clients through a few key steps to ensure their wishes are honored.

• Create a Digital Inventory: List all your online accounts, including financial, social media, email, and subscription services. You should also note where your digital photos, videos, and documents are stored.
• Provide Secure Access: Do not put usernames and passwords in a will, as that document becomes a public record. Instead, provide a secure way for your chosen fiduciary to access the information. This could be a password manager or a secure document stored with your attorney.
• Appoint a Digital Fiduciary: Use your will or trust to name a person to manage your digital assets. This person should be someone you trust and who is comfortable with technology.

The laws and technology surrounding digital assets are constantly changing. Our firm is dedicated to this evolving area of Elder Law, so we work hard to stay informed. A good plan will be flexible enough to change over time, and we can help you with a process that makes updates easy.

Our Approach to Your Digital Legacy

At Rainey & Rainey, PLLC, Attorneys at Law, we understand how important it is to protect all parts of your legacy, including your digital one. We are a compassionate team committed to helping families in Waco and Georgetown create comprehensive plans that address today’s modern challenges. A good plan begins with a conversation about your family, values, and goals. Our attorneys work with flat fees, so once we understand your needs, you will have a clear understanding of the full cost of the work you need to have done.

Planning for digital assets is not about complicated passwords; it’s about protecting your memories and property for the people you love. We invite you to contact us for a consultation to learn more. We have offices in Waco and Georgetown. You can reach us at (254) 752-8644
or (512) 598-9005.