Power Of Attorney And Your Digital Assets

In today’s digital age, we all have a growing list of digital assets, including online accounts, social media profiles, digital currencies, and cloud storage. A lawyer, like a power of attorney lawyer, knows that as these assets become increasingly valuable, it’s essential to have a plan in place to protect and manage them in case something happens to you. One way to achieve this is by setting up a power of attorney (POA) that grants someone the authority to manage your digital assets if you are unable to do so.

Digital Assets And Their Importance

Having a POA as part of your estate plan is smart. Digital assets are more than just your online shopping accounts or social media profiles. They can include a wide range of items, such as:

• Financial accounts (e.g., PayPal, online banking, investments)
• Cryptocurrency wallets
• Social media accounts (e.g., Facebook, Twitter, Instagram)
• Email accounts
• Digital files (e.g., photos, documents, videos)
• Subscription services (e.g., Netflix, Spotify, Amazon Prime)

These assets may contain personal, financial, or sensitive information that needs to be managed in a responsible way if you become incapacitated or pass away. Without proper authorization, your loved ones may struggle to access or manage these accounts, leaving them in a difficult situation. A POA can help avoid these issues.

How A Power Of Attorney Protects Your Digital Assets

A power of attorney allows you to designate someone (known as your agent) to act on your behalf if you are unable to make decisions or handle your affairs due to illness, injury, or other reasons. By including your digital assets in the POA, you give your agent the authority to access, manage, and protect those assets.

For example, your agent may need to:

• Close or freeze accounts to prevent identity theft or fraud
• Pay bills or manage subscriptions to avoid overdue payments
• Access important financial documents stored in cloud storage
• Post or manage your social media accounts if you become incapacitated
• Transfer or liquidate digital currencies or assets like NFTs (non-fungible tokens)

Having a POA in place for these tasks ensures that someone you trust can step in and handle your digital assets without delay.

Overcoming The Challenges Of Digital Asset Management

Digital assets often present unique challenges because they don’t always follow traditional ownership or inheritance laws. Many online service providers and platforms have terms of service that govern access to accounts, and these terms may differ from one provider to another. Some platforms may require specific steps or documentation to allow someone to take control of an account.

Including Digital Assets In Your Power Of Attorney

To properly protect your digital assets with a POA, it’s important to include specific language in the document. Make sure to:

• List the digital accounts and assets you want your agent to manage. Be as specific as possible about each account and its contents.
• Clarify the powers your agent will have over these accounts, such as the ability to access, modify, or close them.
• Specify whether your agent can transfer, liquidate, or manage any digital currencies, investments, or other online assets.
• Ensure your agent knows where to find the necessary login information for your accounts, such as passwords and recovery keys.

It’s also a good idea to review your POA regularly to account for any new digital assets you may acquire or changes in your accounts.

Protect Your Digital Legacy

A POA is not just about managing digital assets during your lifetime; it can also help protect your digital legacy after you pass away. For instance, your agent may need to handle the deletion or transfer of accounts, ensure your online content is preserved, or prevent unwanted access to your personal information.

By addressing digital assets in your POA, you can help your loved ones manage your online presence and digital property with care and respect. It also gives you peace of mind, knowing that your digital life will be handled according to your wishes if you are no longer able to manage it yourself. Attorneys like those at Morton Law Firm can help you create a comprehensive POA that includes provisions for your digital assets, providing you with the security and peace of mind that your digital life is protected. Call your local lawyer today.

Disclaimer:

1. The Rhode Island Supreme Court licenses all lawyers in the general practice of law, but does not license or certify any lawyer as an expert or specialist in any field of practice. This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice, nor the formation of a lawyer client relationship.
2. No Attorney-Client Relationship Created by Use of this Website. Neither your receipt of information from this website, nor your use of this website to contact Aptt Law LLC (hereinafter “the Firm”) or one of its lawyers creates an attorney-client relationship between you and the Firm. You will become a client of the Firm only if and when you sign an engagement agreement setting forth the scope of the Firm’s engagement, the fee arrangement and other relevant matters.
3. Disclosure Under IRS Circular 230: Any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any tax-related transaction or matter.