1. Digital Assets and Estate Planning
MCLE Estate Planning Symposium 2017
Katie L. S. Von Kohorn, Esq.
Casner & Edwards LLP
303 Congress St., Boston MA 02210
@kszal

2. Agenda Identifying digital assets Client wishes and privacy concerns
Sample language
Safeguarding digital assets
Pending: Revised Uniform Fiduciary Access to Digital Assets Act
Tips for fiduciaries: following TOS
What’s next?

3. Identifying Digital Assets

4. Identifying Digital Assets
Password-protected tangibles: mobile phones, computers, tablets
Online financial information: Bank accounts, Mint.com, Quicken
accounts
Cloud storage: Dropbox, iCloud, Google Drive
Social media: Facebook, Instagram, Snapchat, WhatsApp
Mobile and online accounts: Apple Pay, online shopping, gaming sites, rewards programs (frequent flier miles, LevelUp, etc.)
Media: iTunes, Netflix, Amazon
Cryptocurrencies and P2P payments:bitcoin, Ethereum, Venmo
Intellectual property: blogs, domain names, fanfiction, self-publishing, YouTube

5. Client wishes – estate planning
Does client want anyone to have access? Fiduciary? Digital PR?
stored or deleted? Client-dependent: same as tangibles?
Note: may be subject to CFAA and ECPA, and RUFADAA if adopted
Online financial accounts: Fiduciaries’ chief concern
Access to photos and videos: Dropbox, Google Drive, Flickr, Instagram
Does client want archived profile? Facebook “legacy” page
Shutting down other accounts: online shopping, gaming, AirBNB.
May anyone else access digital media or rewards programs?
Apple music, Kindle, frequent flier miles
Virtual currency: Paypal will issue check for balance; Bitcoin needs unique key.
Intellectual property: Should anyone operate or sell client’s blog or domain names?

6. Sample Language for Wills PLEASE NOTE: ALL SAMPLE LANGUAGE PROVIDED IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL ADVICE.
Subject to any limitations imposed under federal, state, or contract law, my Personal Representatives shall have the power to locate, access, administer, distribute and dispose of my Digital Assets (defined below). The power to administer includes the power to obtain, access, and control my passwords and other electronic credentials associated with my Digital Assets, the power to transfer information and property, [and the power to delete information]. For the purposes of this will, “Digital Assets” include (1) any files stored on my electronic devices, including but not limited to desktops, laptops, tablets, peripherals, storage devices, mobile phones, and any similar digital device which currently exists or may exist at the time of my death, (2) any account owned by me or to which I have access governed by a terms-of-service agreement, including but not limited to accounts, digital music, digital photographs, digital videos, software licenses, social network accounts, file sharing accounts, financial accounts, domain registrations, DNS service accounts, web hosting accounts, tax preparation service accounts, online stores, affiliate programs, other online accounts and similar digital items which currently exist or may exist at the time of my death, regardless of the ownership of the physical device upon which the digital information is stored.
I authorize any person or entity who controls access to a Digital Asset to grant to my Personal Representatives full access to such Digital Asset, including without limitation any and all of my information pertaining to the Digital Asset, including passwords, access codes, the contents of all of my electronic communications, and any and all electronically stored information. This authorization shall be construed as my consent pursuant to the Electronic Communications Privacy Act of 1986, as amended, the Computer Fraud and Abuse Act of 1986, as amended, and any other federal or state privacy or criminal law. This authorization is also intended and should be construed to supersede any authorization given in account management services or online tools within my Digital Assets, including but not limited to Google’s Inactive Account Manager and Facebook’s Digital Legacy Contact. This authorization shall remain effective after my death.
Include in powers section: My Personal Representatives may hire forensic accountants or other technical experts to assist them in obtaining access and control over my Digital Assets.

7. Safeguarding digital assets

8. Safeguarding digital assets
Under-the-mattress storage?
Protection from hackers?
Travel issues
Cloud password protection: Lastpass, Dashlane, Sticky Password Premium
Access to photos and videos: Dropbox, Google Drive, Flickr
Privacy: Does client want archived profile or blog? Facebook “legacy” page. Deleting blog?
Shutting down other accounts: online shopping, etc.
Access to digital media or rewards programs?
Apple Music, Kindle, frequent flier miles, other points programs
Virtual currency

9. Uniform Fiduciary Access to Digital Assets Act

10. Uniform Fiduciary Access to Digital Assets Act
“Final” version of Uniform Act approved July 2014
Adopted in Delaware; introduced in 26 states
Industry input in drafting
BUT - industry opposition to enactment
Privacy concerns? ACLU
Concern over possible conflict with federal laws
Google, Facebook, ISPs, involved in lobbying against UFADAA
PEAC act – interim Act drafted by industry, 2015
Uniform Law Commission decided to revise UFADAA

11. REVISED Uniform Fiduciary Access to Digital Assets Act

12. REVISED Uniform Fiduciary Access to Digital Assets Act
Final version of RUFADAA approved by ULC July 2015
Enacted in 32 states as of May 22, 2017 (not MA)
Introduced in 12 additional states (5/12 have passed both houses)
Additional industry input in drafting
More restrictive – opt-in instead of opt-out
MA has 3 bills pending – not RUFADAA. May adopt RUFADAA next year?

15. Agent’s access to other digital assets.
COMPARISON OF THE UNIFORM FIDUCIARY ACCESS TO DIGITAL ASSETS ACT (ORIGINAL UFADAA), THE PRIVACY EXPECTATIONS AFTERLIFE AND CHOICES ACT (PEAC ACT), AND THE REVISED UNIFORM FIDUCIARY ACCESS TO DIGITAL ASSETS ACT (REVISED UFADAA)
Issue
Original UFADAA
PEAC Act
Revised UFADAA
Agent’s access to other digital assets.
Permitted under a grant of general or specific authority.
Not addressed.
Permitted under a grant of general or specific authority. Custodian may require specific identification of the account and evidence linking the account to the principal.
Trustee’s access to the contents of electronic communications of a trust account.
Permitted unless prohibited by the user, trust, or court.
Permitted when trustee is the original user. Also permitted when the trustee is not the original user if authorized by the trust. Custodian may require specific identification of the account and evidence linking the account to the trust.
Trustee’s access to other digital assets of the trust.
Permitted unless prohibited by the user, trust, or court. Custodian may require specific identification of the account and evidence linking the account to the trust. 2

16. Effect of boilerplate term-of- service prohibiting fiduciary access.
COMPARISON OF THE UNIFORM FIDUCIARY ACCESS TO DIGITAL ASSETS ACT (ORIGINAL UFADAA), THE PRIVACY EXPECTATIONS AFTERLIFE AND CHOICES ACT (PEAC ACT), AND THE REVISED UNIFORM FIDUCIARY ACCESS TO DIGITAL ASSETS ACT (REVISED UFADAA)
Issue
Original UFADAA
PEAC Act
Revised UFADAA
Effect of boilerplate term-of- service prohibiting fiduciary access.
A blanket prohibition on fiduciary access is void as against public policy.
Not specifically addressed, but terms of service arguably enforceable by the reference to “other applicable law” (i.e. contract law) in Sec. 3(c).
Three tiered approach: A user’s direction using an online tool prevails over an offline direction and over the terms-of-service if the direction can be modified or deleted at all times.
2. A user’s direction in a will, trust, power of attorney, or other record prevails over the boilerplate terms-of-service.
3. If a user provides no direction, the terms-of-service control, or other law controls if the terms-of-service are silent on fiduciary access.
Effect of other terms-of- service.
Not addressed.
Recipient has no greater rights than the user.
Unless they conflict with a user’s direction, terms- of-service are preserved and the fiduciary has no greater rights than the user. 3

17. Procedure for disclosing digital assets.
COMPARISON OF THE UNIFORM FIDUCIARY ACCESS TO DIGITAL ASSETS ACT (ORIGINAL UFADAA), THE PRIVACY EXPECTATIONS AFTERLIFE AND CHOICES ACT (PEAC ACT), AND THE REVISED UNIFORM FIDUCIARY ACCESS TO DIGITAL ASSETS ACT (REVISED UFADAA)
Issue
Original UFADAA
PEAC Act
Revised UFADAA
Procedure for disclosing digital assets.
Not addressed, but use of the term “access” throughout the act arguably contemplates the fiduciary logging on to the user’s account.
Provider not required to allow a requesting party to assume control of a deceased user’s account.
The custodian has three options for disclosing digital assets:
Allow the requestor to access the user’s account.
Allow the requestor to partially access the user’s account if sufficient to perform the necessary tasks.
Provide the requestor with a “data dump” of all digital assets held in the account.
Administrative fees.
Not addressed.
A custodian may assess a reasonable administrative charge for the cost of disclosing a user’s digital assets.
Deleted assets.
Deleted assets need not be disclosed.
Unduly burdensome requests.
Court shall quash an unduly burdensome order.
A request for some, but not all, of a user’s digital assets need not be fulfilled if segregation is unduly burdensome. Instead, either party may petition the court for further instructions.
Fiduciary duties.
Incorporated by a generic reference to “other law.”
Expressly incorporated. 4

18. Custodian not liable for
COMPARISON OF THE UNIFORM FIDUCIARY ACCESS TO DIGITAL ASSETS ACT (ORIGINAL UFADAA), THE PRIVACY EXPECTATIONS AFTERLIFE AND CHOICES ACT (PEAC ACT), AND THE REVISED UNIFORM FIDUCIARY ACCESS TO DIGITAL ASSETS ACT (REVISED UFADAA)
Issue
Original UFADAA
PEAC Act
Revised UFADAA
Account termination.
Not addressed.
If termination would not violate a fiduciary duty, the fiduciary may request account termination rather than disclosure of assets. A custodian may require specific identification of the account and evidence linking the account to the user.
Joint accounts.
Custodian need not disclose if aware of any lawful access to the account following the death of the user.
Custodian need not disclose if aware of any lawful access to the account after receipt of the disclosure request.
Timely compliance.
Required within [60] days, or fiduciary may request an order of compliance.
Required within [60] days, or fiduciary may request an order of compliance. The order must contain a finding that disclosure does not violate 18 U.S.C. §
Custodian immunity.
Custodian is immune from liability for an act or omission done in good faith compliance with the act.
Custodian not liable for
compliance in good faith with a court order issued pursuant to the act. 5

19. Tips for fiduciaries: following TOS

20. Tips for fiduciaries: following TOS
Facebook: Legacy contact
User can request deletion of profile upon user’s death or designate legacy contact . If no legacy contact is named, account is locked when Facebook is notified of death.
Google: Inactive Account Manager
Gmail, google drive, etc. May provide access to data if user has so requested; manager can download data for 3 months after notification.
Twitter: deactivate only
Request to deactivate may come from PR or “verified immediate family member”; can only request deletion of account or removal of photos, and Twitter “may not honor every request.”
Yahoo: close account only
Ajemian case: TOS will not govern forum selection. TOS does not allow access to contents of – instead account will be terminated and contents “permanently deleted.” Ajemian siblings currently sponsoring bill in MA which would allow access.
Instagram: memorialize or delete
Upon notification of death, memorializing account locks it, cannot be edited. “Verified immediate family members” may request removal; may be a PR or family member.

21. What’s next?

22. What’s next?
Keep an active list of digital assets as assets change over time
Clients should know where passwords are
Privacy: clients’ and fiduciaries’ interests may be in conflict
Professional fiduciaries have fewer options
RUFADAA: look for passage in Massachusetts