Rhode Island Enacts Provisions Regarding Revised Uniform Fiduciary Access to Digital Assets Act
The state of Rhode Island has recently enacted the Revised Uniform Fiduciary Access to Digital Assets Act, effective immediately.
The purpose of the law is to grant a custodian access to a user’s online accounts, correspondences, and other electronic files, in the event of death or incapacitation, if specified in his or her will, trust, or similar agreement. The Act applies to the following scenarios: an agent or fiduciary acting under a power of attorney or will, a personal representative acting for a decedent, a conservatorship or guardian proceeding, or a trustee acting under a trust.
The revised act gives fiduciaries some authority to manage digital assets, but it also provides privacy protections for the owners of the digital assets and legal protections for the companies who create and store digital assets.
The key revision from the original Uniform Fiduciary Access to Digital Assets Act is that the revised act significantly reduces the power of an executor to access digital assets. For example, an executor no longer has authority over the content of electronic communications (private email or social media) unless the deceased person explicitly consented to disclosure. An executor can get access to other types of digital assets, but now he or she must petition the court and explain why it is necessary for the asset to be disclosed.
If a fiduciary does not have explicit permission to access a digital asset through a will, trust, or similar instrument, custodians can look to terms-of–service agreements to determine whether they must comply with requests for access to a decedent’s account. Custodians may also request court orders, limit their compliance by providing access only to assets that are reasonably necessary for wrapping up the estate, charge fees to comply with requests for access, and may refuse unduly burdensome requests. Finally, custodians may not provide access to deleted assets or joint accounts.
Zachary Pearlstein, JD, is a Regulatory Compliance Director with CLA's Mortgage Advisory Division. He joined CLA on January 1, 2014, as part of its acquisition of Bankers Advisory, Inc. Zachary oversees Mortgage Advisory's regulatory compliance team, which focuses on federal and state compliance, fair lending, and the Home Mortgage Disclosure Act (HMDA). He is a graduate of Brandeis University and earned his juris doctor at Suffolk University Law School. He is admitted to the Massachusetts Bar.
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