Custodian

When the Minnesota rules apply

In Minnesota, for example, chapter 521A covers fiduciaries acting under wills or powers of attorney, personal representatives acting for deceased users, conservatorship proceedings, and trustees acting under trusts. Other states differ.

The chapter applies to a custodian if the user resides in Minnesota or resided there at death. It excludes an employer's digital asset used by an employee in the ordinary course of the employer's business.

Forms of disclosure

In Minnesota, for example, when disclosing a user's digital assets under chapter 521A, the custodian may choose among three methods for a fiduciary or designated recipient. Other states differ.

• Full access to the user's account.
• Partial access sufficient for the recipient's assigned tasks.
• A record copy of qualifying digital assets.

Copies cover assets the user could have accessed when the custodian received the disclosure request, if the user were alive, fully capable, and able to access the account.

The custodian may assess a reasonable administrative charge and need not disclose assets deleted by the user.

If a user directs or a fiduciary requests disclosure of some assets, the custodian need not disclose them if separating them would impose an undue burden.

If the custodian believes that burden exists, the custodian or fiduciary may seek a court order for a subset limited by date, all assets to the fiduciary or designated recipient, no assets, or all assets for court review in chambers.

Access has limits

In Minnesota, for example, chapter 521A preserves the user's and custodian's contractual rights to access and use digital assets. It gives a fiduciary or designated recipient no new or expanded rights beyond the user's rights. Other states differ.

User directions or federal law may modify or eliminate access. Terms of service may also do so if the user has not provided a direction under Minnesota's statutory disclosure direction provision.

Related terms

Digital asset: In Minnesota, for example, an electronic record in which an individual has a right or interest, excluding an underlying asset or liability unless it is itself an electronic record. Other states differ.

Catalogue of electronic communications: In Minnesota, for example, information identifying each person with whom a user has communicated electronically, the time and date of the communication, and that person's electronic address. Other states differ.

EstatePlanner.com resources

• Digital assets and property. Open this guide to place the custodian question alongside digital inventories, access instructions, and cryptocurrency custody.
• Digital estate records and questions checklist. Use this checklist to prepare your account records and questions before discussing a disclosure request with a provider.
• Fiduciaries and governance. Read this next if your main question concerns the person seeking access and how that role fits into estate administration.
• Asset and authority map template. Use the template to organize a discussion about each account, its custodian, and the person expected to handle it.

An Investor Advantage perspective

This speaker discusses investment custodians and portfolio expenses. The practical prompt for your account review is to identify who handles each part and what you pay them.

"I would say what I learned was you have to focus on the basics. And what I mean by that is, I don't know how many families will truly understand what they are paying every year in their expenses in terms of the who they're paying, that their portfolio manager is the custodian is how each individual asset is performing on a net basis."

Common questions