Probate can be an incredibly difficult process in and of itself. The presence of digital assets, such as cryptocurrency or valuable media, in your loved one’s estate can introduce even more complexities.
Nevertheless, it is not something that proper preparation and understanding of the law can’t overcome. Here is some vital information on how digital assets can affect probate and, ultimately, estate distribution.
What challenges can you expect?
With regards to your loved one’s estate, digital assets will typically include virtual items of value, such as cryptocurrencies, media and digital tokens. These assets can present additional challenges, including:
- Access issues: Unless your loved one gave you usernames and passwords, it can be difficult to access their accounts.
- International complications: Digital assets stored on servers in different countries can be subject to varying jurisdictions.
- Terms of service: Many platforms have specific policies about account ownership and transferability, which can affect whether you can transfer the asset outside the estate.
- Valuation problems: It can be challenging to determine the accurate value of digital assets, especially for cryptocurrencies.
Expect one or more roadblocks to arise once you file the will in probate court. Preparing for potential challenges can help make it easier for you to take inventory of these assets, assign value to them and distribute them to the appropriate beneficiaries.
How to mitigate these challenges during probate
One of the best ways to make this process easier is to gather necessary documents, such as a death certificate and the court’s order for probate. You can present these documents to digital service providers so you can gain access to their accounts.
It may also be a good idea to consult appraisers specializing in the digital assets in question. This way, you can determine the fair market value of their assets, which you can use to take accurate inventory of the estate.
Finally, ensure you carefully review your loved one’s will or trust. These documents may contain specific information on how to handle these assets. If not, the executor must make decisions that will align with your loved one’s best interests and protect their privacy.
Consider seeking legal guidance
Probate can be difficult to navigate on your own, even without the added intricacies of digital assets. In complex situations like this, the help of an experienced estate attorney can streamline the process and make it easier to carry out your loved one’s last wishes.