Another 18 states are in the process of enacting the law, according to the conference.
Stich says that in response to the movement to delineate the disposition of digital assets, a federal law may eventually supersede the states’ efforts.
New Jersey’s law includes digital currency accounts in its definition of digital assets, a wrinkle that might also require a financial advisor’s awareness, says Stich. “It’s tough to understand where crypto-currencies fall. They’re categorized as a form of currency. It’s part of the estate. It has monetary value. We’re going to have to wait for more clarity to see how this takes shape.”
While it’s still unclear whether advisors could bear ultimate responsibility for their deceased clients’ digital currency and online bank accounts, Stich argues that the discussion about the disposition of digital assets presents an opportunity for the advisors give themselves extra value for clients.
“Now is a great time to broach the subject,” he says. “There are so many advocates for these laws, not just among attorneys or in the AARP, but large institutions are also suggesting that this should be done. It’s a nice, simple way to help clients and show that advisors can help clients pre-retirement, during retirement and beyond retirement.”
Kirk notes that holistic financial planning’s focus on client relationships makes advisors well suited to discuss the disposition of digital assets.
“People live different lives on the internet than they do in real life, and they might not want those things to come together,” says Kirk. “They might not want someone reading their e-mail or accessing their Facebook account. They might have things they’ve done creatively that they don’t want to be published or exposed after their death. It’s a very personal subject.”