Summary.
The draft bill seeks to govern the recognition and succession effects of digital assets forming part of a deceased person’s estate, in accordance with wishes expressed during that person’s lifetime. To do so, it proposes adding provisions to Title I, General Provisions, of Book Three of the Civil Code (Código Civil), which concerns succession upon death and gifts between living persons. The proposed rules address both the identification of those assets and the instructions that may determine what happens to them after the holder’s death.
Proposed Article 631-A defines digital assets as intangible rights, content or assets administered, managed or exercised through digital means or environments. The definition covers assets whether or not they have economic value, including those requiring credentials, keys or other technological means of access. It also includes assets held in custody, administered or managed by third parties. The provision thus covers different forms of digital control or custody without limiting its scope to property that can be assigned an economic value.
When identification, preservation or valuation of those assets is necessary, a judge could issue a reasoned order requiring action by digital service providers, electronic platforms or administrators of computer systems. The provision covers domestic or foreign parties with operations, representation or legal effects in the Republic of Panama (República de Panamá). Depending on the circumstances, the order could require them to provide information, carry out instructions left by the deceased person or grant controlled access to the assets. Those actions would be subject to the Civil Code and would serve the purposes of identification, preservation or valuation set out in the article.
Proposed Article 632-B would give priority to the express wishes stated by the deceased person during life in governing the transfer, administration or disposition of digital assets. Those wishes could be recorded in a will or another instrument valid under the law. Instructions could concern access to, preservation, administration, transfer or deletion of the assets. The person could also designate individuals authorized to carry out those purposes. The provision confirming the amendment states that both Article 631-A and Article 632-B would be added to the Civil Code. The proposed commencement date is the day following promulgation.
The draft bill therefore concerns judges dealing with succession matters in the Republic of Panama and the Civil Code as the instrument to which the new provisions would be added. It could also interest or affect heirs, persons designated by the deceased, digital service providers, electronic platforms and administrators of computer systems that hold or manage digital assets.
What it proposes.
- The recognition of digital assets in succession.
- The deceased person’s wishes concerning those assets.
- Judicial requests to identify, preserve or value them.
Who it would affect.
- Deceased persons and individuals they designate.
- Heirs and other parties interested in the succession.
- Digital service providers, electronic platforms and computer system administrators.
- Judges dealing with succession matters.
Key points.
- Proposes governing the recognition and succession effects of digital assets in a deceased person’s estate according to wishes expressed during life.Art. 1
- Adds provisions to Title I of Book Three of the Civil Code on succession upon death and gifts between living persons.Art. 2
- Defines digital assets as intangible rights, content or assets managed through digital means, whether or not they have economic value.Art. 2
- Includes assets requiring technological means of access and those held in custody, administered or managed by third parties.Art. 2
- Allows a judge, through a reasoned order, to require information, performance of instructions or controlled access to identify, preserve or value the assets.Art. 2
- Gives priority to the deceased person’s express wishes stated in a will or another valid instrument concerning transfer, administration or disposition of the assets.Art. 2
- Allows instructions on access, preservation, administration, transfer or deletion and the designation of authorized persons.Art. 2
- Confirms the addition of Articles 631-A and 632-B to the Civil Code and sets commencement for the day after promulgation.Arts. 3-4