top of page

Digital Assets Inheritance in California pt. 6

Specialized Tools for Digital Asset Inheritance in California


The ever-evolving realm of digital assets demands innovative legal tools to ensure smooth inheritance. There are three specialized approaches for managing digital assets in California: Digital Asset Transfer-on-Death (TOD) laws, online account access designations, and digital asset custody solutions.


Digital Asset TOD Laws

California currently does not have specific Digital Asset TOD laws.  Traditional TOD deeds used for real estate are not applicable to digital assets. While some states are exploring the creation of such laws, California relies on other mechanisms for digital asset inheritance. However, the absence of dedicated TOD laws doesn't negate all benefits.  Some financial institutions might offer their own TOD-like options for specific accounts, allowing for a designated beneficiary to inherit upon the owner's death.


Online Account Access Designations

Many online platforms offer the ability to designate individuals who can access the account upon the owner's death. While not a direct inheritance mechanism, it offers a crucial step in ensuring vital information and assets are accessible to beneficiaries; however, limitations exist. Access designations might not transfer ownership of the underlying assets within the account, and platform policies can restrict access or limit how the assets can be used.


Benefits and Limitations of Custodian Tools

Custodian tools can serve as a proactive and instructive device for users to address their digital assets. These tools offer a more streamlined approach for beneficiaries to inherit digital assets compared to relying solely on traditional estate planning documents. Additionally, users have more control over how their digital assets are handled after death, allowing them to designate preferred beneficiaries and potentially grant limited access; however, limitations exist.


These solutions are only effective for the specific platforms offering them. A comprehensive digital asset inheritance strategy would require utilizing a variety of tools in different platforms potentially establishing an ineffective and hard to follow set of instructions. Additionally, the level of access granted to beneficiaries through these tools may be restricted. Downloading complete data or transferring full account ownership might not be possible based on the terms of service for the digital account provider.


The California Landscape

California's Uniform TOD Security Act (UTSA) allows designation of beneficiaries for transfer on death registrations for certain digital assets held in financial institutions. However, the UTSA doesn't encompass the broader range of digital assets and doesn't address the issue of custodian in which a Terms of Service could potentially override beneficiary designations.

Recent Posts

See All

Digital Assets Inheritance in California pt 11

Future Trends and Legislative Developments The realm of digital asset inheritance in California is constantly evolving, with advancements in technology and legal developments shaping the future. This

Digital Assets Inheritance in California pt 10

International and Interstate Considerations in Digital Asset Inheritance The digital age has transcended geographical boundaries, and so too have our digital assets. Californians with digital assets h

Digital Assets Inheritance in California pt 9

Security Concerns: Balancing Privacy and Access The inheritance of digital assets in California presents a complex intersection of access, privacy, and security concerns. There is a need to balance th


bottom of page