Our guest columnist, Albert Luk, returns to provide commentary on relevant legal issues.
When you calculate your net worth, do you include the value of your digital assets?
Digital assets describe the baskets of intangibles either online or in digital storage devices. Think of such items as one's social media presence, on-line financial records and intellectual property (registered domain names, Google adsense accounts etc). A cursory review of this topic area typically involves, quite rightly, addressing digital assets in your estate plan.
However, equal emphasis should be given to digital assets in life. Specifically, some individuals may want to consider adding digital assets in calculating their net worth. Consider the following examples:
I represent many clients who monetize or derive income online. In some cases, the value of such assets can form a significant part of their estate. ''If you are in this position, the next time you calculate your net worth do not forget to summarize your digital assets.
The flip side of the equation is executors' having to deal with the challenges of digital assets in an estate planning context. The challenges are manyfold including: the executor not knowing where online bank accounts are located, social media sites not having policies to deal with users who are deceased and the practical challenge of not having logins and passwords to online accounts.
Law-makers have responded by enacting legislation to fill this void, mainly to address executors' rights to control social media accounts. However, one should not assume that laws will be enacted in every jurisdiction to address this situation.
In such a legislative vacuum, the following best practices have emerged:
In conclusion, digital assets are playing a larger role in life and can cause headaches in death. Individuals who own digital assets and executors best to be prudent and take a proactive approach to this issue.
Albert Luk is a lawyer at''Devry Smith Frank LLP, a Toronto based law firm who act as trusted advisors and advocates for corporations, individuals and small businesses. Albert can be reached directly at''albert.luk@devrylaw.ca''or @acsluk on Twitter.
The above blog post''is for general information purposes only and does not constitute legal or other professional advice or an opinion of any kind. Readers are advised to seek specific legal advice regarding any specific legal issues.
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