Digital assets in Delaware
Key takeaway
A Delaware fiduciary may control an account holder's digital assets and accounts as far as the law and the governing instrument permit. A valid request must come with proof of authority, and a custodian has 60 days to comply. Delaware also lets eligible securities be registered to pass to a named beneficiary at the owner's death.
What counts as a digital asset
Delaware defines digital assets broadly to include electronically created or stored materials, including usernames and passwords. The definition excludes underlying assets or liabilities governed elsewhere in the title.
Fiduciary access
Delaware law generally lets a fiduciary control an account holder's digital assets and accounts to the extent allowed by law and the governing instrument. Certain terms of service limits are void unless separately affirmed.
A valid fiduciary request must include proof of authority. Where access depends on incapacity, it also requires physician certification or a court order stating incapacity.
Custodian deadlines
A custodian must comply with a valid written request within 60 days. A parent or legal guardian seeking access for a deceased minor may seek expedited court review targeted for resolution within 30 days.
Transfer on death securities
Delaware law allows eligible securities to be registered with a beneficiary who takes ownership at the owner's death, including interests in corporations, limited liability companies, partnerships and trusts.
A transfer on death beneficiary designation does not affect ownership while the owner is alive. It may be changed or canceled by the sole owner or all surviving owners.
The transfer on death chapter applies to registrations made before or after its effective date, for decedents dying on or after that date.
Delaware does not require a registering entity to offer or accept transfer on death registrations. Accepting a request means the entity agrees to implement the registration at the owner's death.