As our lives become increasingly digital, so do our assets. From cryptocurrency and online banking to social media and cloud storage, modern estates include a wide range of digital property. Yet, many estate plans fail to account for these valuable assets-leaving loved ones locked out and vulnerable to loss, theft, or legal challenges.
Digital estate planning is no longer optional-it is essential. Whether you're building wealth online, storing family memories in the cloud, or holding crypto investments, protecting your digital legacy ensures that your wishes are honored and your assets are transferred securely.
Contact us by either using the online form or calling us directly at 414-253-8500 for legal assistance.
What Is Digital Estate Planning?
Digital estate planning refers to the process of organizing and legally protecting your online accounts, digital property, and data in the event of your incapacity or death. It involves:
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Identifying your digital assets.
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Naming someone to access or manage them.
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Providing legal authority through wills, trusts, or powers of attorney.
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Storing login credentials securely and accessibly.
This area of estate planning has grown rapidly with the rise of digital-only assets and increased online financial activity.
Why Digital Assets Must Be Included in Your Estate Plan
Your digital life likely includes far more value than you realize. Without proper planning, these assets can become inaccessible or lost forever. Worse, they could be exploited or create disputes among heirs.
Common Digital Assets That Require Protection:
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Financial Accounts: PayPal, Venmo, cryptocurrency wallets, online banking.
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Income-Producing Platforms: Etsy shops, Amazon storefronts, YouTube ad revenue, affiliate sites.
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Personal Property: Photos and videos stored in iCloud, Google Photos, Dropbox.
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Intellectual Property: Domain names, blogs, eBooks, courses.
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Authentication Tools: Email addresses, mobile phone numbers, and two-factor apps that gatekeep other accounts.
When you die or become incapacitated, your loved ones may have no legal right-or even ability-to access these accounts unless you have legally documented your wishes.
Legal Risks of Ignoring Your Digital Assets
Without a valid plan, your digital assets may face:
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Permanent loss of funds in crypto wallets with no recovery keys.
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Locked accounts due to privacy laws like the Computer Fraud and Abuse Act (CFAA).
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Online identity theft, where no one is managing your social or financial profiles.
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Delays in probate, if digital assets are contested or cannot be valued.
Digital estate planning addresses these issues with legally enforceable directives, ensuring control is transferred legally and smoothly.
How to Start Your Digital Estate Plan
The first step is to create a digital asset inventory. This includes listing:
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Account names and URLs.
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Usernames and hint-only descriptions of passwords (never include passwords in your will).
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Backup recovery methods (e.g., email, phone, 2FA apps).
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Descriptions of the value (monetary or sentimental).
Once your inventory is complete, work with an attorney to integrate this information into your broader estate plan using tools such as:
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Digital asset instructions in your will or trust.
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A digital executor or fiduciary granted access and authority.
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A secure digital vault for passwords and authentication devices.
Choosing a Digital Executor
A digital executor is someone you legally authorize to manage your digital assets upon death or incapacity. This role is distinct from your general executor and should be someone who:
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Is tech-savvy enough to manage logins, platforms, and encrypted data.
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Understands your preferences for privacy and content removal or retention.
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Has legal authority through your estate documents and, ideally, powers of attorney or trust provisions.
Digital executors can ensure your online businesses are closed or transferred properly, social media accounts are memorialized or deleted, and your digital assets reach your intended beneficiaries.
Legal Tools to Manage Digital Property
Digital assets can be addressed through multiple estate planning instruments. An attorney can help you determine the best structure based on your specific holdings and preferences:
1. Last Will and Testament
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You can list digital assets in your will and assign authority to a digital executor.
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However, wills become public record in probate, so avoid including sensitive login details.
2. Revocable Living Trust
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Offers privacy and seamless management of digital assets during life and after death.
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Can include instructions for handling revenue-generating platforms or domain transfers.
3. Durable Power of Attorney
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Empowers a trusted agent to access your digital accounts during your lifetime in case of incapacity.
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Should include language that explicitly authorizes access to digital property under the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA).
4. RUFADAA-Compliant Language
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Many states follow RUFADAA, which governs how fiduciaries can access digital property.
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Your documents must include specific authorizations that comply with these modern standards.
Secure Storage and Access Solutions
It's critical not just to document your digital plan, but also to make it accessible. Your heirs or executor will need:
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Secure password vault access (e.g., LastPass, 1Password, or physical media).
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Multi-factor authentication backup codes.
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Written directions stored securely with your estate planning documents.
Avoid keeping all data on cloud-only platforms unless your executor has the ability to bypass encryption and 2FA challenges.
Special Considerations for Crypto and NFTs
Cryptocurrency is irretrievable without private keys. Unlike traditional assets, there's no "reset password" option. Your estate plan must address:
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Where and how private keys or seed phrases are stored.
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Who can access them.
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Whether a hardware wallet, custodial exchange, or third-party manager will be used.
NFTs and digital art also require special handling, including wallet access, proof of ownership, and transferability clauses.
Contact a Digital Estate Planning Attorney
The consequences of not addressing digital assets in your estate plan can be significant-from the permanent loss of crypto funds to emotional distress for your loved ones. At Heritage Law Office, we help clients take control of their digital legacy with secure, future-proof legal strategies.
Contact us today at 414-253-8500 or reach out through our online form to begin your digital estate planning.
To learn more about safeguarding your digital legacy, visit our digital estate planning guide.
Frequently Asked Questions (FAQs)
1. What is considered a digital asset in estate planning?
A digital asset includes any electronically stored information or account. This covers a wide range-from online bank accounts, cryptocurrency, and digital photo libraries to social media profiles, domain names, and online subscription services. If it exists online or in the cloud and has value, sentimental or financial, it should be included in your digital estate plan.
2. Can I include passwords and login credentials in my will?
No, it is not safe or advisable to include passwords in a will because wills become public documents during probate. Instead, use a secure password manager or encrypted document stored offline, and direct your executor to that source in your estate plan. Always consult your attorney on how to legally authorize access.
3. How can my family access my cryptocurrency after I pass away?
Your family can only access cryptocurrency if they have the private keys or seed phrases. Without these, crypto wallets are typically locked forever. A digital estate plan should clearly outline where these keys are stored and who is authorized to retrieve them. This may involve secure offline storage and naming a trusted digital fiduciary.
4. What happens to my social media accounts when I die?
Each platform has its own policies. For example, Facebook allows memorialization or account deletion, while Instagram and Google require a formal request process. Your digital estate plan can specify your wishes for each platform and name someone with legal authority to carry them out. Some platforms also let you name a "legacy contact" in advance.
5. Is a digital estate plan necessary if I already have a will?
Yes. A traditional will does not automatically grant access to digital accounts due to privacy laws and service provider policies. Digital estate planning ensures your online presence and electronic assets are properly addressed with appropriate legal language, additional documentation, and clear access protocols.