Pixels and Passcodes:
Managing Your Digital Footprint
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In our increasingly digital world, we leave behind a substantial footprint of online assets and digital legacies. From social media accounts to email subscriptions, these digital assets hold both sentimental and financial value. However, many individuals overlook the importance of incorporating these assets into their estate plan.
When we talk about “digital assets,” this may cover a wide range of items, including but not limited to:
- Social Media Accounts such as Facebook, Instagram, and LinkedIn profiles. What needs to be done with those? Is there a way to keep the content?
- Email Accounts including Gmail®, Outlook®, Yahoo® and other email services. Who can access that?
- Digital Subscriptions like our beloved streaming services, online publications, and software licenses. This includes ancestry profiles, picture storage sites, airfare miles, and other points and rewards.
- Cryptocurrencies and Online Financial Accounts: Bitcoin, PayPal, and online banking accounts.
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Failure to account for these digital assets in your estate plan can lead to complications and potential loss. Without clear instructions, loved ones may struggle to access or manage your digital accounts, facing obstacles such as password protection, user agreements, and legal complexities. Moreover, neglecting digital assets can result in financial losses and irreversible loss of sentimental data.
So how can we take caution and protect our digital legacy? Start by creating a comprehensive list of your digital assets including login credentials, account details and other instructions for accessing. This will prevent your family from an additional struggle during an emotional and stressful time.
Make sure you designate a digital executor in your estate plan. This should be a trusted individual who will manage your digital assets after your passing. Ensure they have access to all the necessary information to access and know your wishes regarding each asset.
Most importantly, review and update your estate plan regularly, to ensure new accounts are added to the list, passwords are updated, or changes in ownership are noted. As the digital world becomes even more entwined in our day-to-day lives, laws are being updated to account for those changes. Many statutes now include references to digital assets and have established rules for the management and deletion of those assets.
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In conclusion, digital estate planning is a critical aspect of estate planning in the digital age. By proactively addressing your digital assets, you can safeguard your legacy and provide clarity for your loved ones during a challenging time. Take the step and call us today to begin to protect your digital footprint.
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Are You Prepared for the New
Business Reporting Requirements?
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Do you own a business? Have you established a LLC for any reason? Did you transfer a business or LLC into a Trust? The reporting landscape for businesses is undergoing a huge transformation with the introduction of the Corporate Transparency Act (“CTA”). This legislation creates a new framework for ownership reporting, impacting smaller and larger businesses alike.
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The CTA was passed in an effort to combat money laundering and other illegal activities. This federal law applies to any businesses that are formed by registering or filing paperwork with the state or commonwealth. If you do not fall into one of the few, very narrow exceptions, that means your business now must report certain business information to the Financial Crimes Enforcement Network (“FinCEN”), a part of the U.S. Treasury Department.
If the CTA applies to a business entity, that business must now disclose the following information about the business itself:
- The legal name of the business;
- Any trade names of the business;
- Current U.S. business address;
- Jurisdiction of formation; and
- Taxpayer identification number
Additionally, it must provide beneficial ownership information about the business, including:
- Each beneficial owner's name, date of birth and residential (not business) address;
- Identification number from a non-expired passport or driver’s license; and
- An image of the passport or license used for the identification number
This imposes a new burden on business owners; too great a burden, perhaps? The National Small Business Association (“NSBA”) thinks so. The NSBA recently sued to stop the law from taking effect, arguing it will unfairly and disproportionately harm small businesses. The court ruled in favor of the NSBA, but limited the ruling to the individual plaintiff, the NSBA itself, and members of the NSBA as of March 1, 2024. Everyone else is still expected to comply with the reporting requirements until the appeals process is complete.
For entities or businesses created before January 1, 2024, initial reports must be filed by January 1, 2025, with subsequent updates within 30 days of any changes. Entities created after January 1, 2024, but before January 1, 2025, must file initial reports within 90 days, while those created on or after January 1, 2025, have 30 days for their initial filing. Failure to comply carries severe penalties, including fines and potential jail time.
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If you own a business, or exert significant control over a business, or you have a Trust that owns a business, or if you are unsure about any of these things: Please reach out to us to discuss what – if anything – needs to happen going forward.
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