Does a legacy contact inherit the account's assets?

Key takeaway

In Minnesota, for example, a legacy contact designation alone does not make the contact a beneficiary of the account's assets, because the statute separates authority over digital assets from inheritance. Other states differ.

Access authority and inheritance follow separate rules

In Minnesota, for example, a decedent's real and personal property passes under the will or, absent testamentary disposition, to heirs, subject to homestead provisions, allowances, creditor rights, the surviving spouse's elective share and estate administration. Other states differ.

For your review, list the person selected for account access separately from the intended recipient of each asset. Ask your adviser to compare those choices with your estate documents and the account agreement.

Online directions concern disclosure

In Minnesota, for example, an online disclosure direction overrides a contrary direction in a will, trust, power of attorney or other record if the tool lets the user modify or delete it at all times. Other states differ.

Under that Minnesota rule, if no direction was given through the qualifying tool, or no tool was provided, those documents may allow or prohibit disclosure to a fiduciary, including communication contents.

Such directions override a contrary service agreement provision only if that provision does not require affirmative, distinct assent separate from assent to the terms of service.

In Minnesota, for example, the following definitions apply under the digital assets statute. Other states differ.

Digital asset: An electronic record in which an individual has a right or interest. An underlying asset or liability is excluded unless it is itself an electronic record.

Online tool: A custodian's electronic service for directing disclosure or nondisclosure of digital assets to a third person through an agreement distinct from the terms of service.

EstatePlanner.com resources for your next step

Digital assets and property
Open this guide to put your legacy contact choice alongside the wider questions of digital ownership, access instructions and estate administration.
Digital estate records and questions checklist
Use this checklist to gather account information and prepare questions about your access choices before meeting with your adviser.
Asset and authority map template
Use the template to record intended asset recipients alongside the people you want handling account tasks. Bring the comparison to your planning review.
Wills and probate
Read this guide next if your remaining questions concern your will or the role of the person handling your estate.

A perspective on family legacy

"we're really asking ourselves, what does legacy mean for our families? And more and more, what we're seeing is that families are really looking for, transformational experiences."
From an Investor Advantage talk hosted by Richard C. Wilson

Frequently asked questions

Must a Minnesota will name every digital asset individually?

No. In Minnesota, for example, a will may cover all property the testator owns at death and all property the estate acquires afterward, without naming each digital asset.

That coverage concerns property belonging to the testator or estate and does not establish ownership or transferability of every account or license. Other states differ.

Does naming a legacy contact appoint a Minnesota personal representative?

No. In Minnesota, for example, acquiring a decedent's personal representative powers generally requires appointment by court or registrar order, qualification and issuance of letters, except as article 4 provides.

Estate administration starts when letters issue. Other states differ.

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