Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Don't Leave Digital Assets Out of the Estate Plan
Author: Scarinci Hollenbeck, LLC
Date: July 8, 2013
Key Contacts
Back
When it comes to formulating an estate plan, many individuals focus on the assets that hold direct monetary value, such as cash, retirement accounts, life insurance, trusts, real estate, and physical property. Many affluent individuals and business owners rely on trusts or the use of the lucrative gift tax law to transfer these assets to beneficiaries and lower their taxable estate. However, one component many people forget to account for revolves around their digital assets, which are all too often left out of their formal estate plan.
Digital assets can cover a wide variety of ground, and may encompass everything from email and social media accounts, software licenses, blogs, images and music, and financial accounts. This information may be stored on several different cloud portals, such as desktops, laptops, tablets, storage devices, and smartphones.
Because digital assets can hold both sentimental and monetary value, it’s crucial to draw up a beneficiary plan for these items to help the estate process go by more quickly and avoid disputes among family members that could tie up the process. For example, individuals who have underage children or a combination of biological children and step-children may have specific instructions about who retains the rights to certain digital assets. In some states, default laws may not automatically favor kids under 18 or make provisions for step-children who have not been adopted by the deceased individual. Therefore, having a legal document drawn up and included in an estate plan can provide more clarity if ownership disputes arise.
Some digital assets are increasingly coming up tax scrutiny, such as the ownership of Bitcoins. This digital currency is currently on the Internal Revenue Service’s radar as the agency attempts to establish new rules regarding its tax treatment. Owners should take the evolving scope of tax law into effect when making decisions about digital assets that may one day hold monetary value.
- Practices: Tax and Trusts & Estates, Estate & Trust Litigation, Real Property Tax Strategies, Sophisticated Estate Planning & Wealth Preservation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
What Every Real Estate Investor Should Know Before Buying a Rental Property
Before buying a New Jersey rental property, an investor should verify realistic operating numbers, the property’s legal and regulatory status, lead-based paint and flood compliance, the existing leases and tenant protections, and the right ownership structure. A rental property is more than a piece of real estate; it is an operating business subject to legal, […]
Author: Donald M. Pepe
Can You Change an Irrevocable Trust in New Jersey?
In New Jersey, an irrevocable trust can sometimes be modified even though its name suggests otherwise, and one of the primary tools for doing so is a process called decanting. Whether decanting is available depends on the specific terms of the trust and the discretion given to the trustee. Key takeaways: New Jersey has no […]
Author: Marc J. Comer
How Intellectual Property Valuation Will Impact Business Transactions
Intellectual property valuation determines the monetary value of a business’s IP assets, and it drives outcomes in licensing deals, joint ventures, mergers and acquisitions, financing, and ownership disputes. The most valuable assets of a business are often the things that cannot be seen or touched: a proprietary process, a copyrighted work, brand recognition, or the […]
Author: Jay McDaniel
Data Center, Dark Fiber, and Lit Services Agreements in New Jersey: Key Terms and Legal Pitfalls
For New Jersey data center owners and operators, a service agreement may look routine when it is signed. The network is functioning, the vendor is meeting its installation schedule, and the parties have agreed on pricing and performance specifications. The provisions that seem most important at that stage are often the technical ones. That changes […]
Author: George McGowan
Fort Monmouth Redevelopment and the Transformation of Monmouth County Real Estate
The Fort Monmouth redevelopment has entered its execution phase, and it is repositioning the broader Monmouth County real estate market. When Netflix and the Fort Monmouth Economic Revitalization Authority closed on the 292-acre Mega Parcel in December 2025, the transaction did more than hand over a deed. It marked the moment Fort Monmouth stopped being […]
Author: Donald M. Pepe
Local Zoning and Land Use Rules Every New Jersey Rental Property Owner Should Understand
Owning a residential rental property in New Jersey involves more than finding tenants and collecting rent. Property owners must comply with a combination of state laws, municipal ordinances, building and housing codes, and zoning and land use regulations. These requirements can affect everything from the number of dwelling units permitted at a property to whether […]
Author: Donald M. Pepe
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.