As the personal representative of an estate in Michigan, you may be tasked with managing various assets, including digital ones, which can hold sentimental and financial value. Understanding how to probate digital assets in Michigan is crucial to ensuring your loved one's wishes and online legacy are protected.
At the Estate Planning & Elder Care Firm of Michigan, our experienced Michigan probate attorneys help personal representatives manage and distribute digital assets during probate. We understand the unique challenges of accessing, valuing, and distributing these assets and are here to guide you through the process.
What Are Considered Digital Assets in a Michigan Probate Estate?
If you are the executor of a loved one’s estate, including online assets, you must understand what digital assets must be dealt with in probate. Digital assets include a wide range of online accounts and files, such as:
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Email accounts
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Social media profiles (Facebook, Instagram, Twitter, etc.)
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Online banking and investment accounts
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Cryptocurrency wallets
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Cloud storage (Dropbox, Google Drive, etc.)
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Digital photos and videos
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Websites, blogs, and domain names
As the personal representative, you must ensure that these assets are managed according to your loved one’s wishes and protected from potential will disputes.
How Are Digital Assets Handled in a Michigan Probate?
One of the primary challenges with probating digital assets in Michigan is gaining access to them. Many online platforms have strict privacy policies that can make it difficult for a family member to retrieve important files or close accounts after a loved one’s death.
Legal Framework
Michigan has adopted the Fiduciary Access to Digital Assets Act (FADAA), MCLA § 700.1002. This law provides a legal framework for fiduciaries, such as a personal representative, trustee, and agent appointed in a power of attorney, to access these accounts. Like other non-digital assets, the executor can also probate digital assets in Michigan.
Advance Planning
If you are planning to handle a loved one’s affairs when they can’t take care of them or are the executor of their will or trust, your family member can make your job easier by taking these steps:
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Inventory. They should create an inventory of their digital assets, including login information and associated email addresses.
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Will or trust. Their will or trust should provide explicit permission for you as their personal representative to access these accounts.
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Power of Attorney. In their financial power of attorney, your loved one should give you the right to access these accounts as their agent.
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Online platform. Your loved one should use the online tools provided by the platform to designate you as a legacy contact or trusted individual to manage your account.
How Are Digital Assets Transferred in a Michigan Probate?
If you are the personal representative of your loved one’s estate and have gained access to their digital assets, you must distribute them according to their estate plan. This process can be complex, particularly for assets with financial value, such as cryptocurrency, bank and investment accounts, or revenue-generating websites.
During the probate process, you must identify which digital assets are part of the estate, determine their value, and transfer them to the appropriate beneficiaries. If your loved one had a will or trust, you would distribute their digital assets according to the will or trust. If your family member died without a will, these assets would be distributed under Michigan's intestate succession laws.
Let Us Guide You Through the Michigan Probate Process
At the Estate Planning & Elder Care Firm of Michigan, our skilled probate attorneys are here to help you through every step of the probate process, including managing and distributing digital assets. Our Michigan probate attorneys can guide you through the probate process and ensure your loved one’s digital assets are properly managed and distributed. We'll work with you to:
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Identify and access all relevant digital assets
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Determine which assets are subject to probate and which may pass outside of probate
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Value financial digital assets for tax and distribution purposes
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Transfer assets to the appropriate beneficiaries according to your estate plan or Michigan law
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Ensure compliance with the financial institution’s or online platform's terms of service and privacy policies
We understand that dealing with the loss of a loved one is never easy, and the added responsibility of being appointed as their personal representative or trustee can be overwhelming. Our team will work closely with you to ensure that all digital assets are appropriately identified, valued, and distributed according to your family member’s wishes or Michigan law.