Including Digital Assets In Your Estate Plan – Pt 2

Read Part 1 of this Article HERE

Five Steps to Include Digital Assets in Your Estate Plan

If you’re like most people, you probably own a mix of digital assets—some valuable, some sentimental, and some you might not want anyone to see or inherit. Without a plan, these assets can be lost, locked away, or left in limbo. To make sure everything is handled the way you want, here are five simple steps you can take to protect your digital property.

1 | Create a Detailed Inventory With Access Instructions

Start by making a list of all your digital assets—everything from social media and email accounts to cryptocurrency, loyalty points, or cloud storage. For each one, write down where it’s stored and how to access it, including usernames and passwords. A password manager like LastPass
can make this easier.

If you own cryptocurrency, leave very clear instructions. Without the right keys, wallets, or exchange info, it could be impossible for your loved ones to access it. Store your instructions securely with your estate planning documents, and make sure your executor or trustee knows how to find them. It’s also smart to back up important files and update your inventory regularly.

2 | Add Your Digital Assets to Your Estate Plan

Once you’ve made your list, include your digital assets in your estate plan—just like you would with your house, bank accounts, or other property. You can use a will or a trust to name who should inherit each asset and what you want done with it. For example, you might want certain accounts closed or deleted.

Don’t write logins or passwords directly into your will or trust (wills become public record after death). Instead, keep that information stored safely elsewhere and let your fiduciary know where to find it. Tools like Directive Communication Systems
can also help manage this. If your fiduciary isn’t tech-savvy, consider naming a co-fiduciary (a “digital executor”) just for digital assets, or allow them to hire an IT consultant. We can help you decide what arrangement works best.

4 | Limit Access

Think about how much access you want your executor or trustee to have. Should they be able to read your emails or texts, or only manage and close accounts? If there are things you want to keep private, we can make sure your estate plan spells that out clearly.

04 | Include Relevant Hardware
Don’t forget the devices themselves—smartphones, computers, tablets, or flash drives that hold your digital property. Giving your fiduciary access to these makes their job easier. You can even leave the device to someone different than the person who inherits the data on it.

5 | Check Service Provider Tools

Many platforms, like Google, Facebook, and Instagram, let you set up tools to designate someone who can manage your account after death. Use them when available, but make sure the people you name online match the people named in your estate plan. If not, the provider’s tool will likely control who gets access, not your plan.

Don’t Leave It to Chance

Technology is a huge part of our lives, and your digital assets deserve the same care and planning as everything else you own. We can help you update your estate plan so your digital property—whether valuable, sentimental, or private—is handled exactly the way you want. Together, we’ll make sure your wishes are respected, your loved ones are supported, and nothing gets lost in the digital shuffle.

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Including Digital Assets In Your Estate Plan – Pt 1

Estate Planning for Digital Assets

Digital technology has made our lives easier, but it has also created new challenges for estate planning. Without proper planning, your digital assets may be lost forever when you die. Locating and accessing these assets can be nearly impossible for loved ones, and in some cases, accessing them without authority may even violate privacy laws or terms of service agreements. You may also have digital assets you don’t want others to inherit, which makes planning ahead essential.

Types of Digital Assets

Digital assets generally fall into two categories: financial and sentimental. Financial digital assets include cryptocurrency, PayPal or Venmo accounts, loyalty program rewards, domain names, websites, and intellectual property that generates royalties. Sentimental assets include photos, videos, emails, social media accounts, and personal blogs—items that may hold more meaning for your loved ones than money ever could. Planning for both ensures your family has access to what matters most.

Ownership vs. Licensing

You may not actually own many digital assets. Some, like cryptocurrency and PayPal accounts, are transferable. But others—such as Kindle e-books or iTunes files—are only licensed for your personal use and may not be transferrable at all. Whether or not they can be passed on depends on the Terms of Service Agreements (TOSA). Even if your loved ones have your login credentials, using them may violate these agreements or privacy laws.

The Law of the Digital Land

To address these issues, most states have adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA). This law allows you to give a fiduciary access to your digital assets through online tools provided by companies, such as Google’s Inactive Account Manager or Facebook’s Legacy Contact, or through instructions in your estate plan. If no instructions exist, the provider’s terms of service will control. Ultimately, leaving clear directions—including usernames and passwords—is critical to ensuring your wishes are carried out.

Make a Plan

Digital assets are part of your legacy, and without planning, they may be lost or inaccessible. By including them in your estate plan and leaving clear instructions, you can protect both financial value and sentimental treasures for the people you love.

Read Part 2 Five Steps to Include Your Digital Assets in Your Estate Plan HERE

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