3 minute read

More and more individuals are living their lives online and going paperless. Businesses are moving towards e-commerce and e-communication.  As we increase our digital footprint, we are potentially creating a new problem for Executors and Trustees to access and administer our digital assets upon our death and incapacity.

How many online accounts do we have among banking, investments, government (taxes and benefits), shopping, utilities, work, health providers, rewards programs, etc.?  Have you counted?  You may be surprised.

Back in the day, Executors and Trustees were able to rummage through boxes and binders to locate statements and physical assets to manage, execute and distribute an estate.  It was already a time-consuming and daunting task.  As assets are moved online, do they know where to locate them? Are we making it more difficult for them?  Where do they begin?

What are digital assets?

Currently, there is no clear definition on digital assets.  As the subject becomes more prominent in the future, it will garner more legal context, hopefully.

Presently, digital assets can be categorized into three groups:

1. Access to online accounts such as banking portals

2. Assets that have financial value such as cryptocurrency

3. Sentimental assets such as photos and social media

When you set up an online profile, most user agreements don’t include a clause for death and incapacity. This makes it difficult for Executors and Trustees to access the content.  Some firms like Apple have created a legacy feature which allows legal representatives to perform their duties upon a user’s death or incapacity.

In Canada, few provinces have enacted laws to account for digital assets. Saskatchewan1, New Brunswick, and the Prince Edward Island are three that have a direct legislation that allows Executors to access digital assets in the event of death and incapacity. Alberta has modified an estate law to permit Executors the core duty to access online accounts.2  What about other provinces, territories, and jurisdictions outside of Canada?

What should you do?

If you do nothing, it can potentially be difficult for your Executor and Trustee to guess where your online accounts are because they simply don’t know.  There are no physical records.

Here are some best practices.

1. Maintain an inventory of your online accounts. Store it with your Will and Power of Attorney.

2. Prioritize the digital assets based on the need for access, financial value, and sentimental value.

3. Consult your legal representative.

4. If you want your estate to be handled properly in the digital world, share you plans with your Executor, Trustee, and loved ones.  Empower them in your legal documents.

5. If you don’t have an ideal Executor and/or Attorney in mind, consider appointing a professional, such as the Royal Trust.  These specialists have legal and accounting backgrounds and are trained to handle both simple and complex estates.  They know the rules and have a proven process.  When you appoint a firm, as opposed to individuals, there is continuity with the staff and your estate will not be impacted.

Having a thorough plan and peace of mind are important.  We offer financial and estate planning in our services.  Please contact us to discuss further.