Digital Estate Planning: How to Protect and Pass On Your Digital Assets

Why Does Digital Estate Planning Matter?

In today’s digital-first world, most of us have extensive online lives—far beyond just social media. Think about how you pay bills, store documents, access subscriptions, or manage your business. When was the last time you wrote a paper check or received a printed bank statement?  

For many, digital assets include everything from email accounts and cloud storage to subscription services and cryptocurrency wallets. These accounts often hold financial, legal, or sentimental value. Planning for how they’ll be handled after your death is a crucial part of a modern estate plan. 

For most of us, our online lives are well-established. More than just your social media accounts—the way that you live day-to-day. When was the last time you wrote a paper check? Or got a credit card statement in the mail? How about paper files? If you have a business, you probably also have a domain name and a host of social media accounts under the business name. 

And that’s not even the fun stuff. How about your media subscriptions? Everything from how you get news, check out library books, play video games and watch content has an account—and a password. 

While protecting passwords has gotten more secure, passing on all these assets has become correspondingly more complicated as others need specific info from you, and potentially even another of your devices. Even if you have them, there may be terms of service prohibitions by the service provider or Federal data privacy laws that limit access. 

Just like the estate plan for your traditional assets, the goal is to protect your loved ones, and smooth the transition. 

Start with a Digital Asset Inventory

Start with your personal accounts, but for right now don’t include accounts that have value. This is just about the daily details and activities of your life, or things that have sentimental value, like photographs. 

• Social media accounts (Facebook, Instagram, LinkedIn) 

• Subscription services (Netflix, Spotify, news, games) 

• Email accounts (Gmail, Outlook, iCloud) 

• Online banking and credit card accounts 

• Utility service accounts 

• Online payment platforms (PayPal, Venmo, Cash App) 

• Document storage (Dropbox, Google Drive) 

• Smart home services 

• Buyer/seller profiles (Amazon, Etsy, eBay) 

• Photo/video sharing accounts 

• Contact lists and calendars 

*Tip: Use a secure password manager to store and organize credentials, then export and save a backup in a cloud-based storage account that a trusted person can access. 

The ideal file would have the name of the service or account, your username, password, and identifying information (like answers to questions or backup accounts). You can use a password app for this, but you’ll want to export it to another, accessible file. You’ll also want to be sure you back everything up to the cloud, and this should include digital copies of your passport and other documents. 

Passing On Valuable Digital Assets

Digital property with monetary value is a little different. First you need to know if you actually own the asset or if you have a license for it. The legal protections are different and assets need to be properly identified. Some examples of assets with monetary value include: 

• Domain names for websites 
• Blockchain assets, crypto, NFTs, etc. 
• Digital photos and videos or other intellectual property that you’ve created or otherwise own 
• Digital rights to literary, musical composition, motion picture, or theatrical works 
• Online video channels that create a revenue stream, like YouTube 
• Social media accounts with partnerships that generate revenue 

You must determine whether you own these assets or have licensed access, as legal treatment differs. A qualified financial advisor or estate attorney can help identify and classify these assets properly. 

Digital Asset Law: An Evolving Area

Many states have adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which lays out three tiers for accessing digital assets: 

Tier 1: If a digital service provides a tool to designate what happens to assets after you die, this designation guides what happens to the account. For example, if you used Google’s inactive account manager to designate a family member, this designation would guide what happens to your Google assets. 

Tier 2: If there isn’t any tool, then the owner’s directions in a will or legal document determine the handling of the account or asset. 

Tier 3: If neither of the first two scenarios are present, the terms-of-service agreement dictates how those accounts can be accessed. As mentioned, those agreements often restrict access to the original owner. 

Essentially, these are protections, but they could result in your heirs not getting access unless you make appropriate provisions in your estate planning documents. Just like an executor, you’ll need to identify who should have access to the assets and what the circumstances are. This may be more than one person and each will have responsibility for different types of assets. You can specify whomever you desire. 

The Digital Documents

The digital estate plan is a formal document that includes the inventories you’ve created, identifies who has access and lays out what you want done. If you’ve made a will, don’t include this document in it. Wills go through the public process of probate, and for obvious reasons, you want to keep this private. You should note in your will or create a codicil to indicate that it exists—your estate planning attorney can handle this. 

How to Formalize Your Digital Estate Plan

Your digital estate plan should include:

• A clear inventory of all digital accounts and assets 

• Access information (passwords, recovery methods) 

• A list of individuals authorized to manage specific assets 

• Instructions for how assets should be handled 

Important: Do not include passwords or sensitive access details in your will, which becomes public during probate. Instead, store your digital estate plan securely and reference it in your will or a legal codicil with the help of an estate planning attorney. 

The Bottom Line

As our lives continue to move online, planning for your digital legacy is no longer optional. From treasured family photos to online businesses and blockchain investments, your digital footprint holds value that should be protected. 

Working with a financial advisor experienced in digital estate planning can help ensure that your online presence—and the value it holds—is preserved and passed on according to your wishes.