In what is going to be an interesting legal case, an attorney is suing over his account being locked due to misuse of the auction system within Second Life. The actual result of this case is important in one aspect: does the virtual property in Second Life have the status of “real” property in terms of financial/legal ownership?

Naturally, there are arguments both ways and even a conference discussing these types of issues. However, it will be critical, should virtual property be deemed real property, to protect your investment for your beneficiaries. Some of this property can be worth thousands in real dollars, a significant amount of money that should be passed on to someone.

Other things to consider in this possible outcome is if the property is now taxable and whether or not the transfer of that property to a beneficiary can be contested. Virtual property as real property opens up a whole new set of questions that we haven’t yet asked or answered.

How many of you who play Second Life have your account information documented? Do you want to risk the loss of that property because you didn’t take the time to write it down somewhere?