In today’s digital world, your estate consists of far more than real estate, bank accounts, and personal belongings. From email accounts and social media profiles to online banking, cryptocurrency, and cloud-stored photos, digital assets are now a major part of nearly everyone’s life. Unfortunately, many people overlook these assets when creating an estate plan, leaving loved ones to face confusion, delays, or even permanent loss of valuable or sentimental information.
Protecting your digital assets in your estate plan ensures that your family can access, manage, and preserve what matters most—without unnecessary legal hurdles.
What Are Digital Assets?
Digital assets include any electronic records, accounts, or property you own or control online or through digital devices. Common examples include:
- Email accounts (Gmail, Outlook, Yahoo)
- Social media profiles (Facebook, Instagram, LinkedIn, X)
- Online financial accounts (banking, PayPal, Venmo)
- Cryptocurrency and digital wallets
- Investment and trading platforms
- Cloud storage (Google Drive, Dropbox, iCloud)
- Digital photos, videos, and documents
- Domain names, blogs, and online businesses
- Subscription accounts and reward programs
Some digital assets have significant financial value, while others hold deep sentimental importance. Both deserve protection.
Why Digital Assets Create Unique Estate Planning Challenges
Unlike physical property, digital assets are governed by strict privacy laws and user agreements. Many online platforms are prohibited from sharing account access unless proper legal authorization exists. Federal laws, such as the Stored Communications Act, can prevent service providers from releasing account contents—even to family members—without explicit permission.
Without clear instructions and legal authority, loved ones may be locked out of accounts forever. This can delay estate administration, create unnecessary expenses, or result in the permanent loss of irreplaceable memories or digital property.
The Importance of Naming a Digital Executor
One of the most effective ways to protect digital assets is to name a digital executor. This person is responsible for managing, closing, transferring, or preserving your digital accounts according to your wishes.
A digital executor’s responsibilities may include:
- Accessing important accounts
- Preserving family photos or messages
- Closing or memorializing social media profiles
- Managing cryptocurrency or online businesses
- Protecting your digital identity from fraud
An estate planning attorney can help determine whether your state allows a separate digital executor or whether these duties should be assigned to your primary executor or trustee.
Creating a Digital Asset Inventory
A complete digital asset inventory is essential. This document should list:
- All digital accounts and assets
- Usernames and login information (stored securely)
- The purpose or value of each account
- Instructions for what should happen to each asset
For security reasons, passwords should never be included directly in a will. Instead, they should be stored in a password manager or secure document, with instructions on how your executor can access them.
Granting Legal Authority Over Digital Assets
Modern estate plans should include explicit language authorizing your executor, trustee, or agent to access and manage digital assets. Many states have adopted laws based on the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which allows individuals to grant fiduciaries legal access to online accounts.
Without this authorization, even a well-intentioned executor may face legal barriers when attempting to access your accounts.
Addressing Cryptocurrency and Online Financial Accounts
Cryptocurrency requires special attention in estate planning. Unlike traditional bank accounts, digital currency cannot be recovered without private keys or recovery phrases. If this information is lost, the asset may be unrecoverable—regardless of its value.
Your estate plan should clearly explain how cryptocurrency access information is stored and who is authorized to manage or transfer it. The same applies to online investment platforms and payment apps.
Keeping Your Digital Estate Plan Updated
Digital lives evolve quickly. New accounts are opened, old ones are forgotten, and passwords change. Reviewing and updating your digital asset plan regularly ensures it remains accurate and effective.
An estate planning attorney can help you integrate digital asset protection into your broader estate plan, ensuring consistency with your will, trust, and powers of attorney.
Protect Your Digital Legacy
Your digital presence is part of your legacy. Taking proactive steps now can spare your loved ones frustration and protect both valuable assets and meaningful memories. By including digital assets in your estate plan, you gain peace of mind knowing nothing important will be lost or mishandled.
Plan Your Digital Estate With A Greensboro Estate Planning Team
Your digital life holds financial value, personal history, and the tools your loved ones may need to manage your affairs. Leaving those accounts and files unplanned can make a difficult time even harder for the people you care about. With thoughtful digital estate planning, you can give your executor, trustee, and agents clear authority and practical guidance, and you can make intentional choices about what should be preserved, shared, or closed.
The Law Offices of Cheryl David helps individuals and families in Greensboro integrate digital assets into comprehensive estate plans that also cover wills, trusts, Medicaid planning, guardianships, and powers of attorney. If you are ready to review your current documents or create a new plan that reflects your online life, we encourage you to reach out and schedule a conversation about your options.
Call (336) 717-0375 to discuss digital estate planning in Greensboro with our team.