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
Rule 26 Expert Discovery: When an Expert Witness Uses AI, Is It Discoverable?
Case law following the 2010 amendments to Federal Rule of Civil Procedure 26 offers guidance on how courts are likely to address whether an expert witness’s AI records are subject to discovery. Key Takeaways Rule 26 Expert Discovery After the 2010 Amendments This article addresses the question courts and lawyers have faced in recent cases: […]
Author: Chris Seelinger
How Expert Witness AI Use Ends Up in Discovery
“Show how 3M is 0% at fault.” The absurd tale of how a 350-page ChatGPT history for 3M’s expert witness was produced during a deposition is more likely than you think. It’s an inevitable trend, and an unsettled question for federal courts as experts make generative AI part of their workflow. Key Takeaways Expert Witness […]
Author: Chris Seelinger
The Screenshot Problem: Why Nothing Is Really Private Anymore
Screenshots have changed the risks of electronic communications. The screenshot problem is that messages intended for one person or a small group can be copied, forwarded, preserved, and ultimately presented to opposing counsel, regulators, journalists, customers, or a jury. Businesses should recognize that a truly private digital conversation is increasingly unreliable and ensure their policies, […]
Author: Sean M. Pena
BESS Project Agreements: Allocating Risk Among Developers, EPC Contractors, and Equipment Suppliers
Developers, engineering, procurement, and construction (EPC) contractors, and equipment suppliers each play a critical role in completing a BESS project. However, when equipment costs rise, deliveries are delayed, or regulations change, determining who bears the financial consequences can become contentious. Well-drafted project agreements are essential to sound risk allocation. Key Takeaways This article is Part […]
Author: Nicholas Wall
IP Infringement: What Steps Can You Take If You're Affected?
IP infringement occurs when someone uses your intellectual property without your permission or beyond the scope of the permission you granted. Common examples of IP infringement include copying a product’s patented features or using a trademarked logo in a way that is likely to confuse consumers about the source or affiliation of goods or services. […]
Author: Michael Mietlicki
Public Allegations, Unfinished Investigation: What New Jersey Businesses Should Do Next
When facing public allegations of wrongdoing, companies should not let the speed of the public conversation dictate the speed of an investigation. An investigation designed to confirm a preferred narrative rather than establish the facts can create serious problems later, particularly if litigation, regulatory scrutiny, or employment claims follow. Key Takeaways When public allegations surface […]
Author: Sean M. Pena
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.