What Are Digital Assets Under Minnesota Law?  

Digital assets include more than just social media accounts. They cover a wide range of online accounts and electronically stored information.

Common examples include:

• Email accounts

• Online banking and investment accounts

• Social media profiles

• Cloud storage accounts

• Cryptocurrency and digital wallets

• Subscription services and online businesses

Under Minnesota law, digital assets are treated as property. That means they may become part of your probate estate if they are owned solely in your name and do not have a beneficiary designation.

Minnesota has adopted a version of the Revised Uniform Fiduciary Access to Digital Assets Act. This law allows a personal representative, trustee, or agent to access digital assets in certain circumstances. However, access is not automatic. Online service providers often have their own rules and privacy policies, which can complicate matters.

Understanding how to probate digital assets in Minnesota works is essential if you want your personal representative to manage or close accounts efficiently.

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How Digital Assets Probate in Minnesota Can Create Challenges  

Many people assume their family can simply log into their accounts after they pass away. In reality, that approach can violate federal privacy laws or the terms of service of the account provider.

Without proper authorization, your personal representative may face obstacles such as:

• Denied access to email or cloud storage

• Difficulty locating financial accounts

• Inability to recover cryptocurrency

• Delays in closing or transferring online accounts

For example, if important financial statements are delivered only by email, and no one has legal authority to access that email account, it may delay the probate process. Similarly, if you own cryptocurrency and no one knows where the private keys are stored, those assets could be permanently lost.

Probating digital assets in Minnesota can also raise valuation issues. Some digital property, such as online businesses, monetized content, or valuable domain names, may have significant financial value. Failing to identify and properly manage these assets can create confusion or even disputes among beneficiaries.

These challenges highlight why digital assets should be addressed directly in your estate planning documents rather than left to chance.

How to Plan for Digital Assets in Minnesota Estate Planning  

The good news is that proactive planning can make digital assets probate in Minnesota much smoother for your family.

Here are several practical steps to consider:

Create an inventory.
Maintain a secure list of your online accounts, including usernames and information about how to access passwords. Avoid putting passwords directly in your will, since a will becomes public during probate.

Update your estate planning documents.
Your will, trust, power of attorney, and health care directive can include specific language authorizing your chosen fiduciaries to access and manage your digital assets. This authorization is often necessary under Minnesota law.

Use online tools when available.
Some companies, such as Google and Facebook, allow you to designate a legacy contact or set instructions for your account after death. These designations can override conflicting instructions in a will.

Consider beneficiary designations.
Certain digital financial accounts may allow you to name a payable-on-death beneficiary. This can help avoid probate altogether.

Review your plan regularly.
Technology changes quickly. It is important to review your estate plan periodically to ensure it reflects your current digital footprint.

By taking these steps, you reduce the risk of confusion, delays, and lost assets. You also make it easier for your loved ones to carry out your wishes during an already difficult time.

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Conclusion

Digital assets are now a routine part of everyday life, yet they are often overlooked in estate planning. Understanding how digital assets probate in Minnesota works can help you avoid unnecessary complications for your family.

Careful planning ensures that your online accounts, financial information, and digital property are handled according to your wishes. It also provides your personal representative with the legal authority needed to act on your behalf.

If you have questions about your estate plan or how to address digital assets, the attorneys at Yanowitz Law Firm can help you explore your options and plan with confidence.

Frequently Asked Questions

1. What are digital assets?
Digital assets include online bank accounts, social media profiles, email accounts, cryptocurrency, digital photos, and other online or electronically stored information you own.

2. How are digital assets handled in Minnesota probate?
A personal representative can manage digital assets during probate, but only with proper legal authority. Without clear planning, access may be delayed or restricted.

3. How do I include digital assets in my estate plan?
Create an inventory of your accounts and include language in your will or trust that gives your personal representative authority to manage them. Working with an attorney helps ensure everything is properly addressed.

Author

Claire creates wills and trusts which provide security and peace of mind. She compassionately listens to her clients’ dreams, goals, and fears and then fashions plans that best meet their needs. It is important to Claire that her clients understand different options and make decisions that are right for them. She loves to educate clients by drawing out complicated concepts.

Come visit us! Conveniently located in Rochester, Minnesota.