Online tool
An online tool is a feature offered by a digital account custodian that lets a user direct whether information may be disclosed after the user's death. For digital asset owners, the direction can take priority over a contrary instruction in an estate-planning record under laws in some states. The effect depends on the applicable state rule and whether the tool allows the user to modify the direction.
How it works
An online tool records a user's direction about disclosure of digital assets. South Carolina gives a modifiable direction priority over a contrary direction in a will, trust, power of attorney, or other record. Pennsylvania allows a user to direct disclosure or nondisclosure through a custodian's online tool. If the tool allows changes or deletion at all times, the direction overrides a contrary direction in an estate-planning record.
Minnesota also gives a modifiable online-tool direction priority over contrary instructions in a will, trust, power of attorney, or other record. The rules described here are state-specific.
Where it shows up for owners of businesses, real estate and private investments
Digital account owners may use an online tool to identify who may access information after death.
RUFADAA permits a user to authorize a fiduciary in a will, trust, or power of attorney to access digital assets, and to designate a third party through a service provider's online tool.
Points that are easy to confuse
An online-tool direction is distinct from a direction in a will, trust, or power of attorney. In South Carolina, Pennsylvania and Minnesota, the rules described here give priority to certain online-tool directions when their stated conditions are met.
State law gives specific priority rules in South Carolina, Pennsylvania and Minnesota.
Common questions
What can a user specify through an online tool?
A user can direct whether a custodian may disclose digital assets or related information.
Can an online-tool direction override a will or trust?
South Carolina and Minnesota give a modifiable online-tool direction priority over contrary instructions in a will or trust. Pennsylvania gives priority when the tool permits changes or deletion at all times. These rules are specific to the named states.