Digital Assets in Estate Planning: Don’t Forget Your Online Life
When people think about estate planning, they usually focus on the tangible: houses, bank accounts, cars, and investments. But in today’s world, many of our most valuable assets don’t exist in a file cabinet or a safe deposit box—they live online.
From treasured family photos to social media accounts to cryptocurrency holdings, your digital life is part of your legacy. Without proper planning, your loved ones may struggle to access or manage these assets when the time comes.
What Are Digital Assets?
Digital assets include anything you own or control that exists in digital form. Some common examples are:
Social Media Accounts (Facebook, Instagram, LinkedIn, Twitter/X)
Email Accounts
Cloud Storage (Google Drive, iCloud, Dropbox)
Digital Photos and Videos
Subscription Services (Netflix, Spotify, Amazon Prime)
Financial Accounts (PayPal, Venmo, online banking)
Cryptocurrency (Bitcoin, Ethereum, NFTs, digital wallets)
Domain Names, Blogs, or Online Businesses
These assets may carry significant financial value—or priceless sentimental value.
Why Digital Assets Matter in Estate Planning
If digital assets aren’t addressed, families can face frustrating roadblocks:
Locked Accounts: Loved ones may not have login credentials or legal authority to access accounts.
Lost Memories: Family photos and videos stored in the cloud may be inaccessible.
Unclaimed Value: Cryptocurrency or online businesses could be lost forever without the right keys or documentation.
Identity Theft Risks: Unmanaged online accounts may be vulnerable to hacking or misuse.
By planning ahead, you make sure your digital assets are handled smoothly, securely, and according to your wishes.
Steps to Protect Your Digital Assets
1. Take Inventory
Make a list of your important digital assets, including:
Account names and platforms
Email addresses tied to the accounts
General descriptions of value (financial or sentimental)
This doesn’t mean sharing passwords directly—just creating a roadmap for your loved ones.
2. Decide What Should Happen
For each asset, decide whether you want it:
Transferred to a loved one (e.g., cryptocurrency, photos)
Preserved as a memorial (e.g., Facebook offers legacy settings)
Deleted or closed (e.g., old accounts or subscriptions)
3. Use Online Tools and Settings
Many platforms allow you to set preferences in advance:
Google’s Inactive Account Manager lets you decide who can access your account if it becomes inactive.
Facebook allows you to choose a legacy contact or request your account be deleted.
Apple and other providers offer digital legacy programs to share access with approved individuals.
4. Incorporate Digital Assets Into Your Estate Plan
Your estate planning documents can:
Grant your executor or trustee authority to manage digital assets.
Direct how cryptocurrency or online businesses should be handled.
Ensure compliance with state and federal laws governing digital accounts.
5. Secure Access
While you shouldn’t put usernames and passwords directly in your will (since it becomes public record), you can:
Store them in a secure password manager.
Leave instructions with a trusted person on how to access that information.
Coordinate with your estate planning attorney to create a legally sound plan.
Special Consideration: Cryptocurrency
Cryptocurrency adds another layer of complexity. Unlike bank accounts, there’s no customer service line to call if keys or passwords are lost. Without proper access instructions, these assets can be permanently inaccessible.
An estate plan should clearly identify how your cryptocurrency is stored, who can access it, and what steps need to be taken to transfer or manage it responsibly.
Protecting Your Digital Legacy
Your digital assets may not be physical, but they’re every bit as real—and important—as your home or bank account. Including them in your estate plan ensures that your memories, accounts, and financial resources aren’t lost or mishandled.
Take the Next Step
At Insightful Estate Planning, we help families create comprehensive estate plans that address not only traditional assets but also the growing importance of digital lives. From family photos to cryptocurrency, we’ll guide you in protecting your digital legacy and making life easier for your loved ones.
Contact Insightful Estate Planning today to schedule a consultation and make sure your digital assets are part of your estate plan.
Call us at (206) 457-3265 or click the following link to schedule your Intro Call: https://calendly.com/service-insightfulestateplanning/introductory-call-clone-1
