When most people think of a person’s estate after their passing, they picture things like bank accounts or real estate. However, as technology advances, more of our valuable assets are entirely digital.
A dedicated probate attorney can take into account digital assets in Florida probate cases. This includes plans for ensuring a simple transfer to beneficiaries, tax implications, and the possibility of avoiding probate court entirely.
What Counts as a Digital Asset?
Not all assets of value come in a physical form. The probate process is about dividing things like real estate, valuables, and vehicles among beneficiaries, but Florida residents can also include digital assets in their estate plan. In some cases, they could be worth more than the physical property owned by the estate. Some common examples of digital assets include the following:
- Cryptocurrency;
- Non-Fungible Tokens, or NFTs;
- Income-generating websites;
- Social media accounts with large followings;
- Frequent flyer miles;
- Credit card rewards.
These are only a few examples of digital assets that may have significant value. It is important to rely on legal counsel that understands how the law treats these intangible items, as the failure to take them into account could be a costly mistake for the owner’s heirs.
The law treats these assets the same as any other, meaning that a person’s estate plan should mention them. They could be forced into probate unless the owner takes steps to avoid it.
Avoiding Probate for Digital Assets
Digital property is just like anything else owned by the estate: if it gets tied up in probate court, it could be months or even years before the intended beneficiary receives it. The good news is that there are options for avoiding those court proceedings entirely.
The simplest way to keep digital assets out of probate in Florida is by transferring them during the course of the owner’s life. Only the property held in their name at the time of their passing is included in the estate.
Establishing a trust is a more popular option that not only avoids future complications but also allows the owner to benefit from the property during their lifetime. Transferring ownership to a trust removes it from an individual’s estate, meaning that it is not the responsibility of the administrator. An attorney in Florida could develop a plan that ensures all digital assets are removed from the probate process at the time of the owner’s death.
Possible Complications
The unfortunate reality is that many of these digital commodities a Florida resident might own are required to work within a tech company’s system or framework. This usually means there are passwords or even biometric requirements that must be met before the asset can be accessed or liquidated.
Each of these digital assets is different. Some tech companies might allow for a payable-on-death designation, making it simple to ensure the right beneficiary receives their inheritance. Other platforms might not make things so simple. Without the necessary passcodes, it could take a court order to access them.
Call a Florida Attorney About Digital Assets and Probate Today
When you are thinking about how your estate will be administered, it is crucial to keep all your valuables in mind. If you are not careful, your final wishes might not be met when it comes to distributing your digital assets in Florida probate. Call us as soon as possible for a free case evaluation and learn why The Florida Probate & Family Law Firm is the destination for many people who want to protect and pass on their digital assets.