CEA Digital Asset Management 3

Question 1

A client owns a domain name generating passive income. Which document should specifically address its transfer to heirs?

Accepted Answer

A specific bequest in the will or trust naming the domain

Answer

Domain names are transferable property that should be specifically bequeathed in a will or trust to ensure clear title passes to the intended heir.

Question 2

Which of the following best describes a 'digital asset inventory' in the context of estate planning?

Accepted Answer

A comprehensive record of digital accounts, assets, and access credentials

Answer

A digital asset inventory documents all online accounts, cryptocurrencies, and digital property along with login credentials to enable fiduciary administration.

Question 3

A client's Venmo account holds $3,000 at death. How does Venmo's Terms of Service typically affect estate administration?

Accepted Answer

Venmo may require proof of death and fiduciary authority before releasing funds

Answer

Payment platforms like Venmo require documentation of death and fiduciary authority (e.g., letters testamentary) before releasing funds to an estate.

Question 4

Which scenario correctly illustrates an asset that is NOT a digital asset for estate planning purposes?

Accepted Answer

A physical gold coin stored in a safe

Answer

Physical gold is tangible personal property, not a digital asset, even if its price is tracked online.

Question 5

When advising a client about naming a 'legacy contact' on Facebook, what limitation must the advisor communicate?

Accepted Answer

The legacy contact can only manage a memorialized profile, not access private messages

Answer

Facebook's legacy contact can post tributes and manage the memorialized account but cannot read the decedent's private messages or inherit the account.

(CEA) Certified Estate Advisor Practice Test

(CEA) Certified Estate Advisor Practice Test

CEA Digital Asset Management 3