Digital Assets and Estate Planning

Today, many of us rely on digital assets for everything from managing finances to storing family photos. Planning ahead helps your loved ones access and manage these important items after your death. In this article, we’ll cover what digital assets are and how to handle them in your estate plan. This article explores the essentials of digital asset management for end-of-life planning, explaining what digital assets are and how to transfer, close, delete, or preserve them when the time comes.

What Are Digital Assets?

Digital assets are accounts, files, records, original creations, and other property that control online. Electronic property can hold financial or sentimental value, or both. Common digital asset examples include:

• Email accounts
• Social media accounts, such as Facebook, Instagram, or X
• Cloud storage files, including documents, videos, and photos
• Online investment and banking accounts
• Rewards or loyalty programs
• Downloaded media, like music, ebooks, or videos
• Blogs and digital creative works
• Domain names
• Online businesses
• Cryptocurrencies, such as Bitcoin or Ethereum
• NFTs and other digital collectibles

To manage your digital assets well, start by figuring out what you own, how to access each item, and if you can legally pass them on to someone else.

Digital Assets That Can Pass Through Your Will

Some digital assets can be passed to others through a legally valid will, provided you personally own them and current laws permit their transfer. Here are some examples:

• Online bank and investment accounts. You can include these accounts in your will—or you can name a transfer-on-death beneficiary for them by contacting the financial institution. These accounts are treated just like physical accounts, although additional information, such as your login details, can assist with the process.
• Cryptocurrencies. You can use your will to transfer cryptocurrencies, provided you leave your wallet information and account credentials. If your executor lacks this information, the assets may be lost.
• Domain names. Your executor can transfer your domain names if they have your login credentials and detailed instructions.
• Digital works. You can use your will to transfer original content, such as books, blogs, or artwork, just as you would physical property.
• Files in the cloud. Most files, like personal documents and family photos not limited by service agreements, can be passed on to others.
• Online businesses. These assets include property such as email lists, inventory records, and intellectual property rights. You can name beneficiaries for these types of digital assets in your will.

To maximize digital asset protection, maintain an up-to-date inventory, organize your account information, and name beneficiaries for each asset in your estate plan.

Digital Assets That Cannot Pass Through Your Will

Certain parts of your electronic estate are subject to licensing agreements or provider rules that may prevent you from transferring ownership. Examples include:

• Online subscriptions. Services such as Netflix, Spotify, and Apple Music usually end your account upon your death.
• Licensed software. Access to these programs is usually revoked when you die.
• Social media accounts. You probably can’t transfer these accounts, but you may be able to memorialize them. You can leave instructions for this.
• Online games and digital avatars. You generally can’t transfer these; they will expire with your account.
• Cloud storage platforms. Service terms generally prohibit transfer. Unless you provide your login credentials, others will be denied access.

For these assets, write down whether you want them deleted, closed, or memorialized. This planning helps your loved ones avoid confusion and protects their privacy.

What Is a Digital Will?

A digital will is a document or set of instructions that specifies what should happen to your digital assets after your death. This is not the same as an electronic will, which is a type of will—allowed in only a few states—that is made, signed, and witnessed entirely electronically without any paper.

A digital will typically includes:

• a list of your digital assets and accounts
• login credentials, including passwords (often stored securely with a password manager or other trusted service)
• instructions for handling each asset, such as whether it should be transferred, deleted, or memorialized, and
• final personal wishes, such as a last message for your social media accounts or posts for your blog or website.

A digital will is often a supplement to a traditional will. For instance, your regular will can name a digital executor and direct them to follow the instructions in a separate digital asset memorandum. The memo is considered your digital will.

It’s wise to keep your digital information out of your traditional will for two reasons. First, a will eventually becomes a public document; it shouldn’t contain passwords or other sensitive information. Second, you can easily update your digital assets document when your credentials or instructions change. This would be much harder to do if the information were contained in a finalized legal will.

How to Create and Manage a Digital Assets Plan

Good digital asset planning involves a few key steps to make sure your assets are managed and passed on easily.

1. Make an inventory of your digital assets.

Make a list of all online accounts and other digital assets, including anything valuable or meaningful. You can use the earlier list in this article as a guide. Also, remember to include:

• account numbers, URLs, login credentials, and any necessary hardware—for example, the devices that store your keys, and
• any ownership documents and detailed instructions for access.

Keep this list with your digital asset instructions and check it regularly to make sure it stays up to date and easy to find.

2. Decide what you want to do with each asset.

Write out instructions for each item in your estate planning for digital assets strategy:

• Name a beneficiary for each asset you can legally transfer.
• State which accounts you want to close, delete, or memorialize.
• For services that let you name a legacy contact or a representative, say who these people should be.

A clear plan makes things easier for your family and helps the legal process go more smoothly.

3. Choose your digital executor.

Choose a digital executor who understands technology and privacy. This person can be your main executor or someone else you trust. The right choice helps protect your digital assets and avoid problems later.

Using your will, you can grant your digital executor the authority to access, transfer, or close digital accounts. As previously discussed, you should include information and instructions for your digital executor in a document separate from your will. See more tips for your executor below.

4. Make sure your digital assets plan is legal.

Your digital asset plan must follow state and federal laws. The easiest way to start is by adding your digital asset instructions to your properly finalized will. If you’re unsure, talk to an estate planning lawyer, especially if you have things like cryptocurrency or an online business.

5. Securely store your information.

Store your passwords and recovery phrases using a password manager or encrypted vault. Consider a locked drawer or fireproof safe for backup devices or additional instructions.

Check your plan now and then to keep it up to date. And remember, tell your executor how to find your credentials, and never include sensitive information in your will, because it becomes public during the probate process.

Your Executor's Access to Your Digital Assets

Whether your executor can access your digital accounts plays a major role in protecting your digital assets. Your executor must have legal authority and, equally essential, they must be able to locate and access each item you want them to deal with. To maximize your executor’s ability to manage your digital assets:

• Use your will to give your digital executor specific permission to manage digital assets.
• Use in-platform tools such as Facebook’s Legacy Contact or Google’s Inactive Account Manager.
• Keep an organized list of important devices, hardware wallets, and two-factor authentication methods.
• Provide detailed instructions for accessing sensitive accounts.

Recent laws—including the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA)—have expanded executors’ rights, but it’s important to follow each service provider’s rules and comply with state laws.

Digital Property Laws

Digital asset estate planning requires you to follow a range of laws, agreements, and privacy rules:

• The Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) gives executors certain rights to access digital assets, but only under specific conditions.
• Service provider agreements control what happens to digital accounts—some allow inheritance or memorialization, while others restrict any third-party access even if a will says otherwise.
• Probate laws differ from state to state, so it’s important to check your local rules or consult an estate planning attorney for guidance.

For more complex assets, such as cryptocurrency, it’s best to seek legal advice about trusts, taxes, and specialized estate planning documents. Careful planning will help protect your beneficiaries and the privacy of your digital property.

Learn About Wills

As digital assets become more common, it’s important to plan ahead and keep good records. Without a plan, your valuable property or special memories could be lost to your family. Part of creating a good digital assets plan involves writing your will. To learn more about how to make a will, see the following articles:

• Why Do You Need a Will?
• Different Types of Wills
• How to Make a Will
• Write a Will Without a Lawyer
• What to Include in a Will: Assets and Property

You can find out more about making WillMaker’s will and living trust in WillMaker’s Legal Manual.