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Kyle Knapp keeps a little cha-ching in his cyber wallets, specifically, minimum balances of the digital currency Bitcoin and Ethereum.\u00a0While many Butler area business people might not have jumped – or even dabbled – in cryptocurrency, Knapp said most are quietly building digital portfolios chock-full of financial assets and personal treasures.\u00a0Owner of Viterium, a Saxonburg-based company that handles business IT management, like computer set up, repair, and cybersecurity, Knapp is part of a growing wave pondering digital asset management and security.<\/p>\r\n
Today, Knapp said, common online activities include banking and brokerage accounts, ownership of commercial domain names, websites, email accounts attached to bill payments, eBay, Amazon, PayPal, Etsy\u2026 the list is lengthy and growing daily.\u00a0\u201cAll of these silently add up over time,\u201d Knapp said. \u201cThese are significant assets that you will want your relatives to have when you pass on.\u201d<\/p>\r\n
And then there\u2019s the personal side of your digital portfolio, including photos, videos and contact lists.\u201cThe days of the written address book are gone,\u201d Knapp said. \u201cYoung people today don\u2019t even keep a contact list on their cell phones anymore. Almost everything is tied to social media accounts.\u201d<\/p>\r\n
While people appreciate the importance of Internet security \u2013 the need to keep others out of their accounts on a daily basis \u2013 they often don\u2019t give thought to how to get people in when they die, Knapp said. “According to most online terms of service, just because you have someone\u2019s login and password that does not give you the legal authority to access an account,\u201d Knapp said. \u201cThat could be considered hacking.\u201d<\/p>\r\n
Charles Hadad, an attorney with The Lynch Law Group, said everyone should be planning their digital estate. But when it comes to court cases, the need for forethought is becoming most apparent with business owners. Any business owner handling e-commerce or communicating online needs to know about this, and have it written into their limited power of attorney, \u201c Hadad said. \u201cIntellectual property can be one of a company\u2019s most valuable assets. It\u2019s their goodwill. It\u2019s their brand. There could be copyrights or trademarks in there.\u201d<\/p>\r\n
Hadad said it\u2019s not uncommon for clients \u201cto come in and ask, \u2018I handle most of my business online\u00a0and through email. What happens if I die?\u2019\u201d The answers, Hadad said, can be complicated and preparation is a business owner\u2019s best strategy.\u00a0\u201cThere is some uncharted territory,\u201d Hadad said. \u201cIt could throw a wrench into everything, and bring your business to a halt if you die or even just become incapacitated.\u201d<\/p>\r\n
Laws regulating estates, and specifically power of attorney, are statutory. In Pennsylvania, Hadad said the laws regarding power of attorney were updated in 2015, to mandate more specific\u00a0delineation of powers. \u201cBut still, nine out of ten wills don\u2019t have digital assets noted in them,\u201d Hadad said.\u00a0Business owners should make sure control of digital assets is spelled out in their business plan, power of attorney, and to their executor.<\/p>\r\n
Still, there\u2019s another potential hurdle:\u00a0 As Internet companies likely are not in the same state as the business, neither are the laws it must follow. \u201cIf someone is trying to stand in someone else\u2019s shoes (on an Internet service), that provider could put up a stone wall and say, \u2018we don\u2019t honor that,\u201d said Hadad, who also sits on the Allegheny County Bar Association\u2019s Probate & Trusts Section, as well as the Pittsburgh Estate Planning Council.<\/p>\r\n
Hadad cited this example from a local case that was not his client: \u201cThe estate wanted access into an (email) account because there was valuable information within the email relating to international dealings. The estate even got a court order for the access. But (the provider) wouldn\u2019t honor the court order.\u201d<\/p>\r\n
Hadad predicted that as the digital estates age into use, the number of federal court battles relating to ownership will increase. \u201cThese issues are going to come up more and more because of diverse jurisdiction,\u201d Hadad said.\u00a0But Knapp noted that, \u201cThe Uniform Law Commission is pushing to get more consistency in the legality of how your heirs get access to your accounts. Forty states already have enacted the Revised Uniform Fiduciary Access to Digital Assets Act. And it was introduced in Pennsylvania this year.\u201d<\/p>\r\n
The act, which spells out statutory regulation of digital assets in estates, is in the judiciary committee, according to the state House of Representatives website. Although it would make all participating states uniform, it would not mandate any business\u00a0from following the rules of a different state.<\/p>\r\n
The two experts differ a little on what steps business owners should take immediately.<\/p>\r\n
Hadad said always keep a list of passwords. \u201cDocument your digital footprint. It gives us a jump-start in getting into those accounts,\u201d Hadad said. \u201cYour heirs can hit the ground running in a court battle.\u201d But Knapp disagrees, saying, \u201cPasswords change all the time, and there\u2019s no point. Secondly, you will risk if someone (you do not intend) finds the list. There\u2019s a balancing act between keeping your information protected from others getting access to your accounts now and making sure the people who would care for your estate can get access later.\u201d<\/p>\r\n
Knapp suggests there is value in composing a list of the websites you keep or have kept accounts, accompanied by corresponding user names. Then, Knapp said, leave your heirs a password for the email account or accounts tied to the password reset function.<\/p>\r\n
Hadad and Knapp, though, come to common ground in advising it is worth consulting an attorney and looking into cyber-secure password management tools. “You also might want to invest in an online password management tool that keeps your accounts encrypted,\u201d Knapp said. \u201cThere are free and paid services out there depending on what features you want. But they all would allow you to access your passwords in one place.\u201d<\/p>\r\n
Knapp said it\u2019s worth pre-planning even if you do not believe your digital portfolio has significant value. \u201cYou might not realize how much is out there,\u201d Knapp said. \u201cLook at Bitcoin, for example. If someone put even $50 into Bitcoins on a whim 12 years ago, that potentially is worth $5,000 now.\u201d<\/p>\r\n
This article originally appeared in the December 2018 issue of Butler Business Matters<\/a>. Download a pdf of the article by Kim Paskorz:\u00a0Butler Business Matters – December 2018 \u00a0 \u00a0<\/a>Download<\/a><\/p>\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n Chuck Hadad helps business owners, individuals and families plan for the future by developing estate planning strategies that support their goals. Please contact Chuck for more information about planning strategies for your digital assets. He can be reached a 724-776-8000 or chadad@archive-lynchlaw.pfgsandbox.com<\/a>.<\/p>\r\n","protected":false},"excerpt":{"rendered":" Chuck Hadad Discusses Estate Planning in Butler Business Matters Article Kyle Knapp keeps a little cha-ching in his cyber wallets, specifically, minimum balances of the digital currency Bitcoin and Ethereum.\u00a0While many Butler area business people might not have jumped – … Pittsburgh Estate Planning Attorney<\/h4>\r\n