Law Times

Page 10 OctOber 22, 2018 • Law times www.lawtimesnews.com Risk of loss of control over online identity Factor digital assets into estate planning BY MARG. BRUINEMAN For Law Times D igital accounts and digital assets for com- munication, relation- ships, entertainment and media are now common- place for many people, and some of that, including wealth, could be lost without proper estate planning, say lawyers. "I haven't seen it addressed all that much yet and I think it's something that's going to be- come a much bigger issue than it already is in the coming years just because of the prevalence of digital assets," says Matthew Ur- back, a civil and commercial liti- gator with Shibley Righton LLP's Toronto office, emphasizing the importance of estate planning to account for these developing on- line and paperless features. Email accounts and social media such as Facebook, Twit- ter and LinkedIn are now com- monplace. Lawyers say many people fail to identify those parts of their lives in their estate and risk the loss of control over their online identity as well as accounts that could have some significant val- ue. In order to avoid that, individ- uals need to convey their wishes and make use of the options available for future planning. "It might be worth it to ap- point an executor, an estate trustee that is exclusively in charge of all your digital assets and all of your electronic hold- ings," says Urback. Some hosts and websites pro- vide a process for what happens to the page after the user's death, such as Facebook's point of lega- cy contact, which allows another individual limited access to the page. While past posts can't be removed, the legacy contact can update a profile and write small posts if they're equipped with sign-in information. The con- tact will also have the authority to have the page taken down. Reward programs, such as Air Miles, also have value at- tached to them that may well disappear with the death of the account holder, says Urback. There's also real value at- tached to crypto-currency — or digital cash. And like traditional cash, its value lies with the per- son who possesses it. And if no one stakes claim to it, it is forever lost. So, if the owner of Bitcoin or other crypto-currency doesn't leave behind the location and key to their digital wallet, it's almost like it doesn't exist at all, says Urback. "If you lose it, you lose it, that's it. So, you've got to make sure you're passing on that informa- tion . . . so they can access it after you're gone," he says, pointing out that it's necessary to share all the sign-in information with the trustee for the crypto-currency. "Whoever you're putting in charge of all of that, especial- ly if you have a lot of Bitcoin, you're giving them an immense amount of power." But he warns that putting the access information in the will, a public document, is not a viable solution. Rather, he suggests that information should be directly relayed to the executor. Michele Allinotte, a wills and estates in Cornwall and prin- ciple of Allinotte Law Office PC, opened a crypto-currency account to become familiar with its process, after learning that a client owned a significant amount. Providing access to the key to the account is important, she says, as is ensuring the execu- tor is familiar with how it works and all the steps involved in ac- cessing it. She recommends that owners of crypto-currency walk through the entire access process with their executor, beginning by showing them where the digital wallet is and on what devices the access information is stored. "If you think about it, there's a lot of our accounts that exist only online. I try not to get any paper bills. So, if somebody needed to deal with things for me, they need to get into my email and online accounts and figure out what bills I had and what needs to be paid," she says. "Regardless of the asset, if no- body knows it exists, other than you, it's going to be difficult for the people who are attempting to administer your estate or help you if you become incapable." She also says the will may not be the best place to leave detailed information about access infor- mation that, along with accounts and amounts, could change. One issue Allinotte has en- countered is the spouse not knowing about the crypto-cur- rency their partner owns. If they FOCUS Available risk-free for 30 days Online: store.thomsonreuters.ca Call Toll-Free: 1-800-387-5164 | In Toronto: 416-609-3800 © 2018 Thomson Reuters Canada Limited 00252TC-A92499-CM Your clients are at different stages in their lives and they rely on you to give them the right personal tax and estate-planning advice. 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(Hons), LL.B., CFP, TEP Order # L7798-8518-65203 $73 Softcover July 2018 approx. 700 pages 978-0-7798-8518-3 Annual volumes supplied on standing order subscription Multiple copy discounts available Shipping and handling are extra. Price(s) subject to change without notice and subject to applicable taxes. Matthew Urback says people may want to consider appointing an estate trustee to be in charge of their digital assets. Regardless of the asset, if nobody knows it exists other than you, it's going to be difficult for the people who are attempting to administer your estate or help you if you become incapable. Michele Allinotte See Have, page 12 In-class and online programs recognized by Law Societies Executive Education to Navigate the Canadian Legal Landscape Visit Lexpert.ca to find out more

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