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A law went into effect Sept. 1 in Texas that allows estate
executors, guardians and trustees to gain access to the digital
assets of those who died. The digital property could include photos
saved to an internet platform, digital music library, emails and
credit card loyalty points.

Aaron Dobbs, an estate lawyer in Houston, sat down with the
Chronicle recently and talked about how the legislation will make
it easier for family members and others responsible for unwinding
someone’s estate to inherit digital property much like they’d
inherit real estate or securities. Dobbs’ comments have been edited
for length and clarity.

Q: Why the new law?

A: It addresses a change in the way we look at digital assets,
which can have tremendous material and sentimental value. I don’t
think most people equate digital assets with a bank account or a
house but they can carry the same kind of value. It could be a
domain name that could have lots of value like toys.com, which sold
for $5 million. It could be photography stored online that could be
sold. Someone like Annie Leibovitz may have a large portfolio
stored online. And the airline points could have value.

Q: Whoa! Airline points are digital
assets?

A: Some airlines and credit cards companies don’t allow points
to be transferred under their terms of service, but some do.

Q: How did the transfer process work before Sept.
1?

A: Access was dictated by individual terms of service, whether
it was Facebook or LinkedIn or another online platform. A lot of
times, the terms of service didn’t allow for third-party access.
When users died, online companies would turn off the accounts and
delete the content. If an executor knew the login and password, it
could be unauthorized access under federal law and possibly a
cybercrime.

Q: Can an executor give the digital assets to just
anyone?

A: No. The transfer would be governed by the written
instructions left by the user. Like in a will or a trust.

Q: So when you’re getting your affairs in order,
should you make a provision for your credit card points, your
music, your books and your Instagram?

A: Yes, for a number of reasons. The obvious is to make sure
that the assets are transferred to the appropriate person. But on
the other hand, perhaps the user doesn’t want the assets
disseminated and may want the executor to terminate the account and
destroy the contents.

Q: Are there privacy concerns to worry
about?

A: Yes. I could envision a celebrity’s family getting control of
embarrassing email or text messages and publishing them for profit.
If you are concerned with that, this might be a discussion to have
during the estate planning process.

Q: Will the new law make it easier for executors to
obtain assets?

A: That is the goal, but the law does not allow executors to
have new or expanded rights users didn’t have. The executor is
still governed by the same terms of services as the user. The
license for music is not transferable with iTunes, for example.

Q: Can’t you just go in and raid the points or music
before the company figures out the user died?

A: You could if you knew the credentials to get in, but that’s
probably illegal under federal cybersecurity laws.

Q: Do you have clients who fight over digital
assets?

A: Sure. I have clients who fight over everything. This is no
different. It’s like a box of photographs.

Culled: houstonchronicle.com

A law went into effect Sept. 1 in Texas that allows estate
executors, guardians and trustees to gain access to the digital
assets of those who died. The digital property could include photos
saved to an internet platform, digital music library, emails and
credit card loyalty points.

Aaron Dobbs, an estate lawyer in Houston, sat down with the
Chronicle recently and talked about how the legislation will make
it easier for family members and others responsible for unwinding
someone’s estate to inherit digital property much like they’d
inherit real estate or securities. Dobbs’ comments have been edited
for length and clarity.

Q: Why the new law?

A: It addresses a change in the way we look at digital assets,
which can have tremendous material and sentimental value. I don’t
think most people equate digital assets with a bank account or a
house but they can carry the same kind of value. It could be a
domain name that could have lots of value like toys.com, which sold
for $5 million. It could be photography stored online that could be
sold. Someone like Annie Leibovitz may have a large portfolio
stored online. And the airline points could have value.

Q: Whoa! Airline points are digital
assets?

A: Some airlines and credit cards companies don’t allow points
to be transferred under their terms of service, but some do.

Q: How did the transfer process work before Sept.
1?

A: Access was dictated by individual terms of service, whether
it was Facebook or LinkedIn or another online platform. A lot of
times, the terms of service didn’t allow for third-party access.
When users died, online companies would turn off the accounts and
delete the content. If an executor knew the login and password, it
could be unauthorized access under federal law and possibly a
cybercrime.

Q: Can an executor give the digital assets to just
anyone?

A: No. The transfer would be governed by the written
instructions left by the user. Like in a will or a trust.

Q: So when you’re getting your affairs in order,
should you make a provision for your credit card points, your
music, your books and your Instagram?

A: Yes, for a number of reasons. The obvious is to make sure
that the assets are transferred to the appropriate person. But on
the other hand, perhaps the user doesn’t want the assets
disseminated and may want the executor to terminate the account and
destroy the contents.

Q: Are there privacy concerns to worry
about?

A: Yes. I could envision a celebrity’s family getting control of
embarrassing email or text messages and publishing them for profit.
If you are concerned with that, this might be a discussion to have
during the estate planning process.

Q: Will the new law make it easier for executors to
obtain assets?

A: That is the goal, but the law does not allow executors to
have new or expanded rights users didn’t have. The executor is
still governed by the same terms of services as the user. The
license for music is not transferable with iTunes, for example.

Q: Can’t you just go in and raid the points or music
before the company figures out the user died?

A: You could if you knew the credentials to get in, but that’s
probably illegal under federal cybersecurity laws.

Q: Do you have clients who fight over digital
assets?

A: Sure. I have clients who fight over everything. This is no
different. It’s like a box of photographs.

Culled: houstonchronicle.com

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