In today’s digital age, our lives are more connected to technology than ever before. From social media and online banking to cryptocurrency and digital businesses, we accumulate a significant amount of digital assets over time. But what happens to these assets when we pass away? Unlike traditional property, digital assets aren’t always automatically transferred to loved ones, which can create confusion, legal complications, and even financial losses.
As an estate planning attorney, I’ve seen how overlooking digital assets can lead to unnecessary stress and difficulties for families. Proper planning ensures that your online accounts, digital investments, and intellectual property are protected and passed on according to your wishes. In this blog, I’ll guide you through the essential steps for including digital assets in your estate plan.
What Are Digital Assets?
Before diving into estate planning strategies, it’s important to understand what qualifies as a digital asset. Digital assets include:
- Online accounts – Social media, email, cloud storage, and subscription services
- Financial accounts – Online banking, PayPal, Venmo, and investment platforms
- Cryptocurrency – Bitcoin, Ethereum, NFTs, and other blockchain-based assets
- Digital businesses – Websites, e-commerce stores, affiliate marketing accounts
- Intellectual property – Blogs, copyrighted materials, online courses, digital artwork, and domain names
Because digital assets often require passwords and two-factor authentication, they can be difficult to access after death without proper planning.
Why Digital Assets Need Special Estate Planning
Unlike physical property, digital assets are governed by privacy laws and terms of service agreements, which can restrict access to accounts after death. Many platforms, such as Google, Facebook, and Apple, have their own policies regarding what happens to an account when the owner passes away.
Challenges Without a Digital Estate Plan
- Lost financial assets – Cryptocurrencies or online investment accounts may become inaccessible without proper documentation.
- Locked or deleted accounts – Email, social media, or cloud storage accounts could be permanently erased if heirs don’t have the right access.
- Legal disputes – Without clear instructions, family members may argue over ownership of digital businesses, blogs, or intellectual property.
- Cybersecurity risks – Unmonitored accounts may be vulnerable to hacking, fraud, or identity theft.
A well-structured estate plan prevents these issues and ensures your digital legacy is handled according to your wishes.
Steps to Protect Your Digital Assets
1. Take Inventory of Your Digital Assets
The first step in planning for your digital assets is to create a list of all your important online accounts, cryptocurrencies, and intellectual property.
Include:
- The name of the asset/account
- Where it is stored or accessed
- Login credentials (username, password, security questions)
- Instructions for how you want it handled
For security reasons, don’t store this list in a will (which becomes public record). Instead, keep it in a password manager or a secure document that your executor can access when needed.
2. Assign a Digital Executor
A digital executor is the person responsible for managing and distributing your digital assets according to your wishes. This could be the same person as your estate executor or someone with technical knowledge who understands digital accounts.
A digital executor’s duties might include:
- Closing or memorializing social media accounts
- Accessing and transferring cryptocurrency wallets
- Managing online businesses and digital intellectual property
- Canceling subscriptions or online services
Make sure your digital executor has legal authority by including them in your estate planning documents.
3. Use Online Platforms’ Legacy Tools
Many online platforms now offer legacy planning tools that allow users to decide what happens to their accounts after they pass away.
- Google – The Inactive Account Manager lets you decide who gets access to your Google services (Gmail, Drive, Photos) if your account is inactive.
- Facebook & Instagram – You can appoint a legacy contact to manage or memorialize your account.
- Apple – Apple’s Digital Legacy feature allows you to add a trusted contact who can access your Apple ID after your passing.
Setting up these tools ensures that your loved ones can handle your accounts without legal obstacles.
4. Plan for Cryptocurrencies and NFTs
Unlike traditional bank accounts, cryptocurrency and NFTs are stored in digital wallets that require private keys for access. If these keys are lost, the assets are unrecoverable.
To protect your cryptocurrency:
- Store private keys securely (in a hardware wallet, encrypted document, or safe deposit box).
- Share access instructions with your trusted executor or legal representative.
- Consider using a cryptocurrency estate planning service that specializes in transferring digital assets.
Because cryptocurrency regulations are still evolving, working with an estate planning attorney familiar with digital assets is crucial.
5. Address Intellectual Property and Digital Businesses
If you own a website, blog, YouTube channel, or digital course, these assets can continue generating income for your heirs.
Consider:
- Who will manage or inherit these assets?
- How will revenue be handled? (e.g., AdSense, affiliate marketing, royalties)
- Are copyrights or trademarks involved?
Including these details in your estate plan prevents your intellectual property from falling into legal uncertainty or being abandoned.
6. Include Digital Asset Directives in Your Estate Plan
To ensure your digital assets are legally protected, include specific instructions in your:
- Will or Trust – Outline who inherits your digital assets and any ongoing revenue.
- Power of Attorney – Authorize someone to manage your digital assets if you become incapacitated.
- Letter of Instruction – Provide passwords and instructions for accessing accounts (stored securely).
Because state laws vary, work with an estate planning attorney to ensure your digital asset directives are legally enforceable.
Final Thoughts
In the modern world, our digital footprint is just as important as our physical assets. Whether it’s social media, cryptocurrency, or a thriving online business, proper estate planning ensures your digital legacy is protected and that your loved ones can access what they need without legal obstacles.
By taking proactive steps—documenting your assets, appointing a digital executor, using legacy tools, and updating your estate plan—you can safeguard your online accounts, financial assets, and intellectual property for the future.
If you haven’t yet considered digital asset estate planning, now is the time to start. I encourage you to reach out to an estate planning attorney who understands digital assets to help you create a secure and effective plan. Your digital legacy deserves the same level of protection as any other part of your estate.
