SD Legislative Update - Week 4

With Week 4 in the books, we are nearing the half way mark of the 2017 South Dakota legislative session and AARP South Dakota is busy working on issues important to our 50+ population in South Dakota.

This week AARP South Dakota testified in support of adopting House Bill (HB) 1080, the Uniform Fiduciary Access to Digital Assets Act (UFADAA).

Family caregivers often manage their loved one’s money by way of a legal power of attorney, guardianship or by less formal methods like organizing monthly bills.  Sometimes, they continue to serve in this capacity after death by settling their loved one's estate.

Probate laws, which govern the transfer of property at death, vary significantly from state to state.  And with the rapid increase of an individual’s online presence, state laws vary on whether or not the caregiver can access or deactivate their loved one’s online accounts.  Many states are now grappling with who owns online accounts of a deceased loved one.

Without updates which would allow for the deactivation of online accounts, a deceased’s social media, bank and other online accounts could remain active and become vulnerable to security issues such as e-vandalism, identity theft, and exploitation.

The Uniform Fiduciary Access to Digital Assets Act seeks to minimize the variation of state probate laws and extend them to cover online accounts.  The UFADAA also seeks to protect the digital assets of an individual who passed away by giving their designated fiduciaries control of those assets much the same as the fiduciary would already have access to their tangible assets.

The UFADAA applies to the four most common types of fiduciaries:

Executors or administrators of deceased persons’ estates
Court-appointed guardians or conservators of protected persons’ estates
Agents appointed under powers of attorney
Trustees

Under the UFADAA, individuals have the opportunity to plan for what happens to their digital estate in the same way that they now plan for their tangible estate.  The UFADAA is designed to supplement current state statute on probate, guardianship, trusts and powers of attorney. In order to be allowed access to accounts under UFADAA, a fiduciary is required to send a request to the custodian, accompanied by a certified copy of the document granting fiduciary authority, such as a letter of appointment, court order, or certification of trust.

AARP SD supports efforts to simplify, modify and clarify estate planning and supports our state’s efforts to enact the Uniform Fiduciary Access to Digital Assets Act that would allow fiduciaries to treat digital assets in the same manner as tangible assets.

Also this week, House Bill (HB) 1003 was soundly defeated (16 yes votes, 53 no votes) on the floor of the House of Representatives.  If you recall, HB 1003 would have allowed nursing facilities to transfer or sell nursing bed capacity and AARP South Dakota opposed this bill.  AARP South Dakota felt this bill may impact nursing home residents’ cost, quality of care and the communities they live in.  Thank you to all of you who told your legislators to oppose HB 1003!

The AARP Action of the Week is:
Tell your members of the House of Representatives to support HB 1080 which will enact the Uniform Fiduciary and Digital Assets Act!