Digital Assets in Estate Planning
Financial Education Series
Modern estate planning must address digital assets alongside traditional ones. From cryptocurrency and online financial accounts to social media profiles and digital media libraries, your digital footprint represents significant financial and sentimental value. Without proper planning, these assets may be inaccessible to heirs or lost entirely after your passing.
Average person has over 90 online accounts requiring passwords
Billions in cryptocurrency assets remain unclaimed due to lost access credentials
Only 27% of Americans include digital assets in their estate plans
Categories of Digital Assets to Consider
Digital assets encompass a broad range of online properties and accounts that may have significant financial or sentimental value:
Financial Digital Assets
Accounts and holdings with direct monetary value.
Examples Include:
- Cryptocurrency holdings (Bitcoin, Ethereum, etc.)
- Online banking and investment accounts
- Digital payment platforms (PayPal, Venmo, Cash App)
- Airline miles and hotel loyalty points
- Online gambling accounts
- Domain names and websites with monetary value
Personal and Sentimental Digital Assets
Digital content with primarily personal or emotional significance.
Key Considerations:
- Digital photo and video libraries
- Email accounts containing personal correspondence
- Social media profiles and content
- Personal blogs and written content
- Digital journals and notes
- Family history and genealogy research data
Digital Purchases and Licenses
Media and subscription services with either financial or entertainment value.
Common Examples:
- Digital music libraries (iTunes, Spotify playlists)
- E-books and audiobook libraries
- Purchased movies, TV shows, and video content
- Software licenses and applications
- Online gaming accounts and in-game purchases
- Subscription services (Netflix, Amazon Prime, etc.)
Related Resource
Understanding the fundamentals of estate planning is essential when incorporating digital assets.
Explore Estate Planning BasicsKey Challenges with Digital Assets
Digital assets present unique challenges for estate planning and administration:
| Challenge | Description | Planning Considerations |
|---|---|---|
| Password Protection | Digital assets secured by passwords that heirs don't know | Secure password management system accessible to fiduciaries |
| Terms of Service Restrictions | Many user agreements prohibit account transfer after death | Review policies; use "legacy contact" features when available |
| Legal Access Limitations | Federal laws can restrict access to digital communications | Explicit authorization for fiduciaries in estate documents |
| Two-Factor Authentication | Security features linked to mobile devices or email | Include backup codes, recovery keys, and device access plans |
| Asset Discovery | Heirs may not know what digital assets exist | Create comprehensive inventory of digital assets |
Important: The Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), now adopted in most states, provides a legal framework for fiduciary access to digital assets but requires explicit authorization in estate planning documents. Without such authorization, many service providers may deny access to even court-appointed executors.
Related Resource
Cryptocurrency holdings require special consideration in estate planning.
Explore Cryptocurrency Investing BasicsCreating a Digital Estate Plan
Follow these steps to incorporate digital assets into your comprehensive estate plan:
- Create a Digital Asset Inventory: Document all online accounts, digital property, and access methods (update this regularly)
- Implement a Password Management System: Use a secure password manager and ensure your executor knows how to access it
- Update Legal Documents: Include specific language authorizing fiduciary access to digital assets in your will, trust, and power of attorney
- Use Platform Legacy Tools: Configure "legacy contact" or "inactive account manager" features offered by Google, Facebook, Apple, and similar services
- Provide Clear Instructions: Document your wishes for each type of digital asset (preserve, transfer, delete, memorialize, etc.)
- Backup Critical Data: Maintain offline backups of irreplaceable digital content like family photos and important documents
- Consider a Digital Asset Trust: For significant cryptocurrency holdings, a specialized trust with technical expertise may be appropriate
Related Resource
Estate planning for blended families presents additional considerations.
Explore Estate Planning for Blended FamiliesDigital Asset Inventory Template
For each digital asset, record the following information and store securely:
- Type of asset (financial, personal, purchased content)
- Platform/provider name and website URL
- Username or account ID (not the password in this document)
- Account recovery email and phone number
- Location of access credentials (password manager, crypto keys)
- Specific instructions for handling this asset
- Approximate value (if applicable)
This content is educational in nature and updated as of 2025. Laws governing digital assets in estate planning vary by state and continue to evolve. Platform-specific policies for handling accounts after death also change frequently. This information is not legal or technical advice. Please consult with qualified legal and technical professionals to develop an estate plan that properly addresses your digital assets.