What you need to know about “deceased -user policies”

Social networking is its own category of digital assets, as these accounts are more personal to the owner, and often leave behind a surviving legacy. Their value is rarely monetary, but rather sentimental to those the Networker has left behind. When planning ahead, the most important consideration for the Social Networker is the “deceased-user policies” that are agreed to upon creation of the account.

For example, Facebook allows a family member to “memorialize” the account, so that friends can continue to interact with the Facebook wall, in memory of the deceased. Certain access and features are limited to protect the account holder, and the account can be closed upon a formal request that meets certain criteria. Therefore, in your will, you can merely direct your personal representative to close or memorialize the account. This same memorialization can be made for LinkedIn accounts as well.

For Twitter, however, a family member can deactivate the account and receive an archive of the tweets by merely submitting basic information to twitter in a formal request. Therefore, the account holder may not be concerned with leaving provisions for such accounts, beyond an instruction that they merely be closed (or left open). There are some accounts, on the other hand, that will give family member’s access upon a court order. Keep this in mind for accounts that you specifically do or do not want others to have access to. If you do, then provide the username and password. Otherwise, you may want to include express language that prohibits access to these accounts. This will likely prevent a judge from ordering that your account be accessible to family members.

The Social Networker can start planning ahead today with the following steps: (1) make a list of your social networking accounts; (2) designate the accounts you want private verses those you would like passed on to loved ones; (3) read the user agreements for each account, or have an attorney do it for you (as these policies are often buried in legal language); (4) consult your estate planning attorney with your digital asset wishes, and incorporate them into your will &/or trust; (5) rest easy, your digital legacy is now protected!

The Benefits of Preserving Your Digital Legacy

Take a moment to consider the wide array of online profiles and accounts that are floating around cyber space; bearing your name, personal information, communications, blogs, stored files, and so on. What happens to our online identities when we are gone? Who will receive access to your email, blog, and social media accounts? In South Florida, social media & digital assets are all encompassing in our daily lives. Whether it is for work, school, home, or purely social purposes, our digital assets are incredibly valuable, & should be considered with the rest of our assets when planning our estates. By incorporating your digital assets into your estate plan; you can achieve the following benefits:

▪ Control over how your accounts are closed & preserved.

▪ Control over choosing someone you trust to be an online executor, & follow your wishes regarding the disposal or care of your digital assets.

▪ Privacy – preventing the wrong person from accessing your private information.

▪ Ensuring that your fiduciaries discover all the vital account information when the need arises

▪ Prevention of identity theft – if no one has knowledge or access to your accounts, there is a higher probability that identity theft will go unnoticed.

▪ Easy discovery of electronic bills and similar accounts, to avoid late fees & cancellations that will create losses for the estate.

▪ Preserving your story – allowing family members to access your blog, photos, and other digital assets that keep your memory and story alive.

While many may advise you to simply incorporate your digital asset wishes into your will, doing so can be problematic when it comes to privacy. When a will is admitted to probate, its contents become public record. Thus, any private digital asset information you place in your will, such as usernames and passwords, are exposed to the public. As an alternative, said information can be placed in a separate document that is referenced in the will; or better yet, placed into a trust. This way, your social media identity remains private, and you can receive all of the same benefits mentioned above.

RETAINING DOMICILE IN FLORIDA WHILE LIVING TEMPORARILY IN ANOTHER STATE

ZERO STATE INCOME TAX AND NO STATE ESTATE TAX MAKES FLORIDA THE IDEAL STATE TO LIVE IN. NO WONDER THE SNOWBIRDS FLOCK TO OUR SUNSHINE STATE- JUST LOOK AT FLORIDA’S HOMESTEAD EXEMPTION!

There is a difference between “residence” and “domicile.” A person can only have one domicile, but more than one residence in different states. So what is domicile? It is defined as actual residence within a particular state with the intention of making that state one’s permanent home. Its really comes down to a factual finding of the intent of a person to make a particular state his or her domicile.

Pursuant to Florida Statute §222.17, a person can show intent to maintain a Florida residence as a permanent home by filing a sworn Declaration of Domicile with the clerk of the circuit court. Florida Statutes also provide some factors that manifest intent to retain Florida as a primary residence.

Ways to retain or establish domicile in Florida and take advantage of all its benefits is to purchase real estate in the Sunshine State. One should register to vote in Florida and vote at the next possible election. One should keep his or her Florida driver’s license and plates. Having your will/trust drafted to comply with Florida law stating your domicile in Florida also evinces intent. It’s important to spend a significantly greater portion of each year in Florida by being physically present in the state.

Finally, one should also consider establishing certain relationships with the state of Florida. Banking, religious, social, professional and medical relationships are more than a few examples. Also, keep your personal mailing address as a Florida address.

Calling Florida your “home sweet home” allows you to take advantage of the state’s asset protection laws.

MAXIMIZE FINANCIAL AID THROUGH THE USE OF AN IRREVOCABLE TRUST

A strategic estate planning tool that you may want to consider is creating an irrevocable trust for child’s college fund. Funds transferred to an irrevocable trust remain subject to trust terms and conditions until the established time for distribution. A trust can protect your child’s college fund from creditor’s demands. Also, an irrevocable trust has its own tax ID number and is not considered an asset when calculating your taxes thus providing certain tax benefits. Trust property is excluded from the trustor’s gross estate for federal tax purposes.

Additionally, a trust does not go through probate. Therefore, if a child needs money for school, she can access the funds immediately in the event of your death without being subjected to a lengthy and costly court process. Furthermore, a trust can be set up with restrictions regarding how and when your money will be distributed to your child.

How your trust is drafted and reported on FAFSA dictates the eligibility of your child for need-based financial aid. A common error is reporting the full value of the trust fund when there are proportional shares of ownership in the trust. Also, a typical mistake families make is reporting trust fund amounts incorrectly when ownership of the income and principal from the trust fund are split.

You should consult with your qualified and experienced South Florida estate planning attorney to review the terms of your existing trust to advise you as to what your options are under your trust or draft one for you to meet your objectives concerning your child’s educational needs and goals.