CEA Digital Asset Management 4

Question 1

A client has a Shopify e-commerce store generating $80,000/year. For estate planning, this business is best characterized as:

Accepted Answer

A business asset with goodwill and transferable revenue streams

Answer

An online business like a Shopify store is a transferable business asset with goodwill, inventory, and cash flow that must be valued and included in the estate.

Question 2

Under the Computer Fraud and Abuse Act (CFAA), what risk does a fiduciary face when accessing a decedent's accounts without proper authorization?

Accepted Answer

They could face federal criminal liability for unauthorized access

Answer

The CFAA criminalizes unauthorized computer access, and fiduciaries who access accounts without legal authority (e.g., via RUFADAA) risk federal liability.

Question 3

A client's NFT collection is worth $200,000 at death. Which factor most complicates its estate valuation?

Accepted Answer

NFT market prices are highly volatile and lack standardized appraisal methods

Answer

NFT valuation is challenging due to extreme price volatility, illiquid markets, and the absence of standardized appraisal frameworks, creating estate tax uncertainty.

Question 4

Which provision in a durable power of attorney is most important for managing digital assets during incapacity?

Accepted Answer

An explicit digital asset authorization clause referencing RUFADAA

Answer

Many states require an explicit digital asset clause in a POA to grant the agent authority over digital property under RUFADAA; a general banking clause is insufficient.

Question 5

A client's Kindle library contains hundreds of purchased e-books worth approximately $5,000. How does this affect the estate?

Accepted Answer

Amazon's terms of service grant a non-transferable license, so they cannot be inherited

Answer

Amazon's Kindle terms grant a personal, non-transferable license — the decedent never owned the e-books as property, so they cannot be inherited or sold.

(CEA) Certified Estate Advisor Practice Test

(CEA) Certified Estate Advisor Practice Test

CEA Digital Asset Management 4