Estate Planning For Digital Assets: Protecting Your Online Life
These days, everyone has a digital footprint, and almost everyone owns digital assets. If you were to pass away or become incapacitated, your loved ones might not be able to access these assets such as:
- Your bank logins
- Your investment portfolios
- Your email accounts
- Photos stored in the cloud
- Business accounts
- Cryptocurrency
Without proper planning, these valuable—and often emotionally meaningful—assets can become permanently locked, lost, or litigated. Attorneys such as our friends at The J M Dickerson Law Firm know that protecting digital assets can be just as important as protecting physical assets in an estate plan. This article will cover:
- What qualifies as a digital asset
- Why planning for digital assets matters
- The biggest challenges involved in protecting digital assets
- Steps to protect your online presence
- How to integrate digital planning into your estate plan
Understanding Digital Assets
Digital assets are anything you own, manage, or control online or through technology. They include:
- Email accounts (Gmail, Outlook, etc.)
- Social media (Facebook, Instagram, Twitter/X, LinkedIn)
- Online banking and investment accounts
- Cryptocurrency and NFTs
- Digital wallets (PayPal, Venmo, Apple Pay)
- Online storefronts (Etsy, eBay, Amazon Seller)
- Cloud storage (Google Drive, Dropbox, iCloud)
- Streaming subscriptions (Netflix, Spotify, etc.)
- Domain names and websites
- Photos, videos, and blogs
The list of digital assets is long. By discussing your specific situation with an estate planning lawyer, you can better understand how to protect your assets.
Why Digital Estate Planning Matters
Digital estate planning matters for a variety of reasons, including:
- Access: Your loved ones may need logins to pay bills, cancel subscriptions, or access funds.
- Security: Inactive accounts are targets for hackers and identity theft.
- Value: Some digital assets (like crypto or online businesses) are worth real money.
- Sentimental preservation: Emails, photos, videos, and social media are modern heirlooms.
- Legal clarity: Without instructions, families are left guessing—or worse, fighting.
Just like your physical property, your digital property deserves a place in your estate plan.
Digital Estate Planning: A 5-Step Action Plan
The good news is that protecting your digital assets does not have to be difficult, especially with professional health. If you are looking to protect your digital assets, it is important to:
- Step 1: Make a Digital Inventory
Start by listing:
- All your devices (laptops, phones, tablets)
- All online accounts (personal, financial, business, entertainment)
- Access credentials (usernames, passwords, two-factor authentication keys)
- Instructions for secure data (crypto keys, cloud access, hard drives)
You don’t have to share your passwords with your attorney, but they should know where this list is stored.
- Step 2: Choose a Digital Executor
This is someone you trust to handle your digital assets. It may or may not be the same person as your primary executor.
Your digital executor’s responsibilities might include:
- Logging into accounts
- Closing or memorializing social media
- Downloading and preserving photos or messages
- Accessing financial platforms
- Transferring or deleting content per your wishes
Choose someone tech-savvy, organized, and trustworthy.
- Step 3: Store Passwords Securely
Use a password manager and share the master password with your digital executor or store it in a sealed, secure place.
Alternatively, use a physical notebook with all credentials. Be sure it’s stored somewhere safe (and updated regularly).
- Step 4: Leave Clear Legal Instructions
Many states now follow a law called RUFADAA (Revised Uniform Fiduciary Access to Digital Assets Act). It allows fiduciaries access to digital assets only if you’ve authorized it in writing.
So:
- Update your will or trust to include digital asset clauses
- Add a separate “Digital Assets Addendum” with detailed instructions
- Explicitly authorize access to your accounts under your Power of Attorney and your will
This helps avoid issues with platforms like Google, Apple, or Facebook—which are notoriously strict.
- Step 5: Review and Update Regularly
Technology changes fast. So do your accounts and passwords. Review your digital plan every 6–12 months or any time you:
- Add new accounts or assets
- Change platforms or services
- Update your password manager
Special Notes On Cryptocurrency
Cryptocurrency is not just a financial asset—it’s a high-risk planning area due to its decentralized and encrypted nature.
If you hold crypto:
- Provide clear instructions for accessing wallets and private keys
- Consider cold storage access if you use physical devices
- Work with an estate planner who understands crypto
And remember: if no one can find the keys, the coins are gone. Forever.
Considering For Social Media
Most platforms allow for some posthumous control:
- Facebook: Choose a legacy contact or request memorialization.
- Instagram: Can be memorialized with proof of death.
- Google: Offers an Inactive Account Manager to pre-assign data control.
- Apple: Allows for a digital legacy contact if set up beforehand.
Without planning, your pages and photos may become digital ghosts—out of reach, even for your loved ones.
Storing Your Digital Assets Estate Plan
Keeping your plan safe is important. You may consider storing your plan:
- In your estate planning binder
- With your attorney
- Stored on a secure USB or encrypted file
- In a fireproof safe (if physical)
- Backed up to the cloud with access codes clearly noted
Tell your executor where it is and how to access it.
Protecting The You That Lives Online
Your digital life is part of your story. Your assets aren’t just bank accounts and jewelry anymore—they’re cloud logins, cherished messages, online stores, and keys to invisible vaults of value. Don’t let that part of your legacy get lost in cyberspace.
By creating a simple digital estate plan, you give your loved ones clarity, access, and peace of mind—and you give yourself the comfort of knowing that all of you, including the digital you, is protected.