Most people accumulate substantial digital property throughout their lives, yet few include these assets in their estate plans. Your email accounts, social media profiles, photo libraries, cryptocurrencies, and online business accounts all have value, either financial or sentimental. Without proper planning, your family might struggle to access or manage these digital holdings after your death.
Our friends at Madden Law LLC recognize that digital assets now comprise a significant portion of many estates. An estate planning lawyer can help you inventory your digital property and create legally sound access instructions for your executor or trustee.
What Counts As A Digital Asset
Digital assets include anything you own or control in electronic form. The category is broader than most people realize and continues expanding as technology evolves.
Financial accounts like online banking, investment platforms, PayPal, Venmo, and cryptocurrency wallets hold obvious monetary value. E-commerce accounts on Amazon, eBay, or Etsy might contain seller balances or stored payment methods. Rewards programs and airline miles represent additional financial value.
Social media profiles on Facebook, Instagram, LinkedIn, and Twitter contain years of photos, messages, and connections. Email accounts store important correspondence, business records, and personal communications. Cloud storage services like Google Drive, Dropbox, and iCloud hold documents, photos, and videos your family might want to preserve.
Digital media libraries purchased through iTunes, Kindle, Audible, or streaming services represent collections you’ve built over time. Domain names, websites, and blogs might have commercial value or sentimental importance. Business-related assets include customer databases, intellectual property, and revenue-generating online platforms.
The Access Problem
Digital assets create unique challenges. Your executor needs to know these assets exist, locate them, and gain access without violating computer fraud laws or service provider terms of service.
Most online platforms prohibit sharing passwords or accessing accounts without authorization. The terms of service you agreed to when creating accounts often restrict transferability. Some platforms will delete accounts after periods of inactivity, destroying everything stored there.
Federal law adds another layer of complication. The Stored Communications Act limits who can access electronic communications, even after death. Many states have adopted the Revised Uniform Fiduciary Access to Digital Assets Act to address these issues, but implementation varies.
According to AARP, confusion about digital asset laws frequently prevents families from accessing important information and accounts after a loved one’s death.
Creating A Digital Asset Inventory
Start by listing every digital account and asset you control. This inventory should include account names, usernames, and where you store login credentials. Don’t write passwords directly in estate planning documents that might become public records during probate.
Your inventory might include:
- Financial accounts and cryptocurrency wallets
- Email addresses and cloud storage
- Social media and professional networking profiles
- Shopping and subscription services
- Photo and video storage platforms
- Gaming accounts with purchased content
- Domain registrations and website hosting
- Business accounts and customer databases
Store this inventory securely but make sure your executor knows where to find it. A password manager, encrypted file, or safe deposit box can protect sensitive information while keeping it accessible to authorized people.
Providing Legal Authority
Your estate planning documents should explicitly grant your executor or trustee authority to access, manage, and distribute digital assets. Generic language about “personal property” might not clearly cover digital holdings.
Specific provisions in your will or trust can authorize your fiduciary to access computers, devices, and online accounts. These provisions should reference your digital asset inventory and provide clear instructions about what to do with different categories of assets.
Powers of attorney for financial and healthcare decisions should also address digital assets. During incapacity, your agent might need access to email, banking apps, or medical portals to manage your affairs effectively.
Platform-Specific Planning
Many online platforms now offer legacy contact or account management features. Facebook allows you to designate a legacy contact who can manage your memorialized account. Google’s Inactive Account Manager lets you specify what happens to your data after periods of inactivity. Apple provides a Digital Legacy program for accessing iCloud accounts after death.
Take advantage of these built-in tools. They work alongside your estate plan to give family members legitimate access without violating terms of service. Each platform has different procedures and limitations, so review options for your most important accounts.
Cryptocurrency Considerations
Cryptocurrency requires special attention. Unlike traditional assets held by institutions, cryptocurrency exists only in digital wallets controlled by private keys. If your family can’t locate these keys, the cryptocurrency becomes permanently inaccessible.
Store private keys, recovery phrases, and wallet passwords separately from your general digital asset inventory. The value of cryptocurrency can be substantial, and losing access means losing the entire asset. Consider whether a trust or specialized custody service makes sense for significant cryptocurrency holdings.
Hardware wallets provide additional security but create recovery challenges. Your executor needs physical access to the device plus passwords or PINs to access the stored cryptocurrency.
Email And Communication Accounts
Email accounts often serve as the master key to your digital life. Password recovery for other accounts typically goes through email. Your executor needs email access to manage other digital assets effectively.
Consider the private nature of email communication when planning access. You might want some emails preserved for family members while others remain confidential. Some people create separate email accounts for different purposes, making it easier to grant selective access.
Business And Income-Generating Assets
Digital assets that generate income require prompt attention after your death. A blog with advertising revenue, an e-commerce store, a YouTube channel with monetization, or an app that generates downloads all need ongoing management.
Delayed access could mean lost revenue or business failure. Your estate plan should identify these income-producing assets and provide your executor with authority and information to maintain operations or facilitate sale to interested buyers.
Privacy And Deletion Preferences
Not all digital assets should be preserved. You might want certain accounts deleted, specific files destroyed, or particular online profiles removed. Your estate plan can include instructions about which digital assets to preserve and which to eliminate.
Some people maintain files or photos they don’t want family members to see. Clear deletion instructions protect your privacy while giving your executor guidance about carrying out your wishes.
Regular Updates Required
Digital assets change more frequently than physical property. You open new accounts, close old ones, change passwords, and adopt new platforms regularly. Your digital asset inventory needs updating at least annually, if not more often.
Set a calendar reminder to review your digital holdings every six months. Update your inventory with new accounts, remove closed accounts, and verify that stored information remains current.
Working With Password Managers
Password managers can simplify digital asset planning significantly. Instead of maintaining a separate inventory, you can grant your executor access to your password manager through a master password or emergency access feature.
Many password managers offer emergency access functions that allow designated people to request access, which grants automatically after a waiting period unless you deny the request. This builds in protection against unauthorized access during your lifetime while providing family access after death.
Moving Forward With Digital Planning
Digital assets represent an increasingly important part of estate planning. The accounts, files, and online property you’ve accumulated deserve the same careful planning as your physical assets.
We help clients develop comprehensive strategies that address both traditional and digital property. Your digital life has value, and your family needs clear guidance about accessing and managing these assets. Start building your digital asset inventory today and incorporate it into your broader estate planning documents to protect everything you’ve created and accumulated online.