Virtual Assets and Real Advice - Clients Need Candid Advice Regarding their Digital Assets (4 of 10)
Estate Estate Planning Estate Trusts Estate Wills & Probate
Summary: More and more people are storing photos, personal correspondence, private information and even valuable assets online. Lawyers need to guide their clients with care in this ever changing world of digital estate planning.
Virtual Assets and Real Advice
Clients Need Candid
Advice Regarding their Digital Assets
Marcus Seiter
(Part 4 of 10 part series)
With
traditional property, the law has developed over centuries to protect the
rights of owners to control the disposition of their property at death or
incapacity through the use of wills, trusts, powers of attorney, and other
instruments.[i] During that time, planners have been able to
count on the effectiveness of these tools to facilitate the dispositional
wishes of their clients.[ii] However, attempts to employ traditional
methodologies to digital assets stored online are proving challenging at best.[iii] Unlike traditional property, there are
significant legal barriers standing in the way of an owner’s ability to control
the disposition of online digital assets at death or incapacity.[iv]
B. Terms of Service
Agreements
When people sign up for services like e-mail,
social networking, microblogging, electronic file storage, and online banking,
they are doing so through providers such as Google, Facebook, Twitter, DropBox,
and Bank of America – all of which require the person to contractually agree to
that provider’s terms of service.[v] As it stands currently, these terms of
service agreements – not the intent of users, their legal representatives, or
heirs – govern how these digital assets will be handled when a user dies or
becomes incapacitated.[vi] The vesting of control in online service
providers over the disposition of a user’s digital assets can be problematic
for several reasons.
First,
these terms of service vary widely between service providers. Take Google for example: Google has a large online presence with many
types of services.[vii] Google has one set of terms for its services
generally and supplemental terms that apply to some of its “relevant services.”[viii] While the general terms of service agreement
is silent regarding what happens when a user dies or becomes incapacitated,
there is a policy relating to Gmail found under the heading, “Accessing a
Deceased Person’s Mail.”[ix] Under that section, Google outlines a time
consuming two-step process for authorized representatives to follow.[x] After a preliminary review that “may take up to a few months,” the person is notified
whether they can proceed to the second step.[xi] Step two requires the representative to
furnish “additional legal documents, including an order from a U.S. court
and/or additional materials.”[xii] Despite all of this, Google
emphasizes that this process does not guarantee access and that granting such
access would be “rare.”[xiii]
Yahoo! on the other hand, is much more
definitive about what happens when a user dies.
Its terms of service agreement explicitly states that “any rights to [a
user’s] Yahoo ID or contents within [a user’s] account terminate” at death and
Yahoo! reserves the right to permanently delete the account.[xiv]
Second,
these terms of service can be changed unilaterally and even terminated without
notice. The second paragraph of Apple’s
terms of service agreement starts with the following two sentences, “Apple reserves the right, at its sole discretion, to
change, modify, add or remove portions of these Terms of Use, at any time. It
is your responsibility to check these Terms of Use periodically for changes.”[xv] Similarly, Twitter’s terms of service are “always evolving” and “may change from time
to time without prior notice to you.”[xvi] While
change could be good, it can also run counter to the wishes of users. Facebook’s decision in 2009 to “memorialize”
the profiles of deceased is not without its critics.[xvii] While constantly changing terms can make
planning very difficult, term changes or even account termination without
notice could make dispositional planning impossible.
Finally, terms of service are most often
presented in long form as a take-it-or-leave-it “click-wrap” agreement that
users rarely read or understand.[xviii]
An individual wanting to read through Apple’s terms of service agreement would
have to wade through 64 paragraphs consisting of over 3,400 words of legalese,
not including the nine (9) documents incorporated by reference![xix] Even so, if an individual reads and
understands all of the terms but finds some to be undesirable, there is only
one choice to be made – take it or leave it.
Again, Apple’s unequivocal language displayed prominently in the first
paragraph of its terms of service agreement provides a useful example: “BY USING THE SITE, YOU AGREE TO THESE TERMS OF USE; IF
YOU DO NOT AGREE, DO NOT USE THE SITE.”[xx] Although some cases have been brought to
challenge such agreements, the courts have typically been deferential to the
online service providers.[xxi]
(Rest of article continued in series)
[i] Diane Amado, Uniform Probate Code Section 6-201: A
Proposal to Include Stocks and Mutual Funds, 72 Cornell L. Rev. 397, 400
(1987) (asserting that property can be disposed of through wills, and other
methods).
[ii] McKen V. Carrington, Estate Planning for the Non-Taxable Estate,
21 St. Mary’s L.J. 367, 368 (1989).
[iii] See Hopkins, supra n. 16, at 222.
[iv] See Beyer, supra n. 10, at 139.
[v] Google Terms of Service, Google, http://www.google.com/intl/en/policies/terms/
(last visited May 30, 2014); Facebook
Terms and Policies, Facebook, https://www.facebook.com/policies (last
visited May 30, 2014); Terms of Service,
Twitter, https://twitter.com/tos (last visited May 30, 2014); DropBox Terms of Service, DropBox,
https://www.dropbox.com/privacy#terms (last visited May 30, 2014); Online Banking and Transfers, Bank of
America, https://www.bankofamerica.com/online-banking/service-agreement.go
(last visited May30, 2014).
[vi] Id.
[vii] About Google, Google, https://www.google.com/intl/en/about/ (last
visited May 30, 2014).
[viii] See Google, supra n. 56.
[ix] Id. See also Accessing a Deceased Person’s Mail,
Google, https://support.google.com/mail/answer/14300?hl=en (last visited June
18, 2014).
[x] Id.
[xi] Id.
[xii] Id.
[xiii] Id.
[xiv] Yahoo Terms of Service, Yahoo!
https://info.yahoo.com/legal/us/yahoo/utos/utos-173.html (last visited
May 30, 2014).
[xv] Apple Website Terms of Use, Apple,
http://www.apple.com/legal/internet-services/terms/site.html (last visited May
30, 2014).
[xvi] See Twitter, supra, n. 56.
[xvii] Stephanie Buck, How One Billion People are Coping with Death
and Facebook, Mashable.com (Feb. 13, 2013) (discussing positive and
negative public opinions regarding Facebook’s memorialization policy). See
also Report of Findings into the Complaint Filed by the Canadian Internet
Policy & Public Interest Clinic Against Facebook Inc. Under the Personal
Information and Electronic Documents Act 67-68 (2009), available at
http://www.priv.gc.ca/cf-dc/2009/2009_008_0716_e.pdf .
[xviii] See Beyer, supra n. 10, at 140.
See also Peter Vogel, Who Reads Terms of Service, Privacy Policies
or Click Agreements?, E-Commerce Times (Oct. 27, 2010),
http://www.ecommercetimes.com/story/71121.html.
[xix] See Apple, supra n. 66.
[xx] Id.
[xxi] See Beyer, supra n. 10, at 140.