November 2019 - Garton & Harris

Those who are planning for the succession of their wealth often focus on real estate, bank accounts, beloved items and dependants in their estate plans. However, an increasing number of less tangible assets are making their way into British Columbia wills. Digital assets, a term for access to accounts and technology that may carry financial or emotional value, is a growing topic of discussion in estate planning circles.

“Digital asset” is an umbrella term that can apply to any number of item or accounts. This may include online accounts like emails, social media accounts, blogs, cloud-based document folders, online subscriptions and rewards account. It can also include login information to access hard drives on a computer or phone. Finally, online subscriptions and payment methods should be considered as subscriptions will likely need to be cancelled after death.

Access to online accounts is often dependant on a password, but it can also require double authentication where a code is sent to a phone or email address. For this reason, it is important that executors be left with information to access this technology as well as account passwords if they hope to login to the accounts. Some digital assets, like loyalty points, can have complicated terms related to succession, so looking into these and working them into a plan is a good idea.

There are some individuals for whom digital assets are of primary importance, such as those who own cryptocurrency. However, anyone who has as much as an email address or social media account should consider adding account details and wishes into estate planning documents. A British Columbia lawyer can clarify the best means of recording this information so it is both legally binding and securely stored.

Having an estate plan is vitally important for all adults regardless of their circumstances. In fashioning an estate plan, British Columbia residents must keep in mind who will be involved in estate administration once the time comes and there are a few things to think about when choosing an executor — especially if the executor doesn’t live in the country. For example, if a parent names two children as executors and one lives abroad, there may be some hurdles to overcome, but it could work.

Firstly, anyone who lives outside of Canada who is named an executor could renounce that decision by signing a renunciation form. If a nonresident executor does choose to take on the role, it might be difficult for him or her to access Canadian bank accounts, even though he or she has the right to make decisions regarding the estate. If the person lives in the States, tax implications might have to be overcome as well.

It is always wise to speak to adult children about estate planning and whether they’re on board with being named executors. It might be a good idea to name someone as a backup executor in a will, in any case. There are things that could possibly go sideways if not discussed beforehand.

Those involved in estate administration duties in British Columbia may find it helpful to speak to a lawyer about their roles, especially when sharing those duties with someone outside the country. A lawyer could also foot confusing questions about issues like nonresident executor bonds. It is always in an executor’s best interests to be informed about the laws that go along with estate administration.

Consider digital assets when preparing wills

Estate administration: When one executor lives abroad

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