Why You Really Need a Digital Estate Plan

 

The prevalence of digital technology in our lives is growing at a pace that is outstripping prevailing estate laws and practices. If you don’t make provisions for how your digital estate is handled, you may leave complications in your wake.

 

It could be anything from a minor annoyance, such as a Netflix account that continues to get charged for several months after your passing, to a major issue, such as a situation where no one can find your cryptocurrency key and so those funds are locked away indefinitely. 

 

In this article, we’ll review the 4 steps you can take to create a digital estate plan. We’ll also cover the different types of digital assets you’ll want to include in your plan and a little bit about current law on the matter.

How to Create a Digital Estate Plan in 4 Steps

If you don’t develop a digital estate plan now, you’re leaving your digital assets to an uncertain fate. For example, certain digital assets, such as your Facebook account, will be governed by the company’s Terms of Service agreement, which may not be ideal.

 

Instead, we suggest 4 steps you can take to create smoother access to your digital estate for your heirs.

 

1. Inventory Your Digital Assets. Most people have dozens, if not 100+ digital accounts or assets. For many people, just listing them all in one place is an endeavor. If you’re having trouble getting started, see below for a list of digital asset types.
   
   After you catalog your digital assets, spend some time figuring out whom—if anyone—you’d like to access each asset when your estate is settled. And then, if needed or possible, list that person as a beneficiary within the digital platform, as well as write down these wishes as part of your digital estate plan document.
   
   
2. Store Access Safely and Securely. Be smart about how you provide login access. Don’t put passwords in your Will (which is ultimately a public document) and be extremely judicious with any crypto or non-fungible token keys. If you’re going to write down (physically or digitally) your usernames and passwords, use two different documents that aren’t stored in the same spot. Tell only the people who will need access to them where they are.
   
   Proprietary password storage systems like Dashlane or LastPass have systems that allow you to give particular individuals access to all your logins, using just one passcode, in the case of emergency or your passing. Consider these as a repository for your passwords—and as part of your everyday life. An added benefit is that these systems can keep your passwords updated for you, so that your digital executor will be sure to have current login details.
   
   
3. Include Your Wishes in Your Legal Documents. While you shouldn’t provide usernames or passwords in legal documents, you should outline the existence of your key digital assets and who inherits them. You should also name a Digital Executor, who will gain access to a detailed list of all your digital accounts and what you’d like done with them. Your Digital Executor could be the executor of your estate, or someone else who works in concert with your executor.
   
   
4. Review Regularly. As you live your life, your digital assets will evolve. Without regular updates, your Digital Executor could be left with an incomplete list of accounts and a series of expired passwords. Consider updating your digital assets list twice a year, especially if you don’t use a proprietary password storage system.

 

The Different Types of Digital Assets

This list is by no means exhaustive. However, we wanted to give an outline of the types of assets you should consider, as well as examples of why each is important.

 

Financial account access. Most people manage their finances online. While the underlying funds are considered physical assets, if your chosen loved ones don’t have your login credentials, there may be headaches. For example, your spouse may temporarily not have access to enough funds to cover day-to-day expenses (if you were the one who managed the bills), or your children may scramble to figure out how to pay your mortgage when no statements are showing up at the house and they don’t even know which bank holds the loan.  

 

Similarly, if no one knows how to access your credit cards, your autopayments may continue for much longer than anyone likes. Bank accounts, brokerage accounts, Venmo, PayPal, your company retirement plan, credit cards, online betting platforms, your insurance payment portal—anything digital that you use to spend, manage, store or receive money should be documented.

 

Actual digital assets. Cryptocurrencies and non-fungible tokens can only be accessed with your unique credentials. Save these in a safe place, while also making them accessible to crucial, trusted individuals in case of emergency.

 

Other, less dramatic examples include airline miles and hotel points, which are often transferable to beneficiaries—if your beneficiaries know they exist! Or, maybe you purchased a few website domain names that you were planning to sell to the right bidder; someone should know you have those.

 

Business assets. This isn’t just if you run a business as the centerpiece of your career. Say you have a consulting business after retiring, or you write on Substack. Inventory your digital business accounts, along with instructions for what you want done with them. For example, perhaps you and your niece collaborate on Etsy, but you happen to do the accounting—you should make known whether you’d like her to continue the business and, if yes, give her access to your Quicken login in your digital estate, so she can take over.

 

Personal assets. You probably have lengthy correspondence with a variety of friends and relatives in an email account. Maybe you save your photos on iCloud, or upload them to Flickr or Shutterstock. Maybe you have an unpublished novel on Dropbox, or you’ve saved a trove of videos with your grandkids on Google Drive. These are all important pieces of who you are—and keepsakes that your loved ones may want far into the future.

 

Document them and look into platform-specific tools that allow you to express what you want done with them. For example, Google Inactive Account Manager lets someone that you designate gain access to portions of your account, if you’re incapacitated or deceased. 

 

Social media assets. Facebook, Instagram, Tiktok, Reddit—any account where your images or videos or ideas appear and you regularly post should be documented. How do you want your life memorialized? Surely you don’t want your social accounts to just be left as-is in perpetuity after your passing.

 

Facebook, for example, has a Legacy Contact feature that allows you to designate someone to manage (or close) your account without their being able to access your private messages. In each instance, see what the rules are—and decide what you’d like to happen to these accounts.

 

Other online accounts. In a digital world, you likely have a variety of subscriptions and accounts that are managed online. Everything from shopper accounts with Target and Amazon, to streaming through Hulu and HBO Max, to memberships with your favorite wine-of-the-month club and your local gym.

 

While these types of accounts are less crucial, it’s still nice for a digital executor to go in and close them—it saves the hassle of unwanted wine showing up at your front door, for example. Closing these accounts more quickly will also save money.

 

Physical objects holding digital material. A key example is your phone. If no one has the passcode, accessing parts of your digital life becomes much harder. Or, maybe you’ve saved digital copies of all your important legal documents on an air-gapped, encrypted hard drive. Who has the code, how can it be accessed?

The Current Landscape: RUFADAA

Lastly, it’s important to understand how digital assets are currently treated from a legal standpoint. The following brief overview is designed to get the conversation started with your estate planning attorney; it is not legal advice. Your counsel can advise you more directly on your specific situation.

 

The Revised Uniform Fiduciary Access to Digital Assets Act, also known as RUFADAA. This act was written by the Uniform Law Commission in an attempt to standardize access to digital assets by executors of an estate. As of 2025, every U.S. state (and Washington D.C.) has adopted it, expect for Louisiana.

 

Generally, the law attempts to balance the privacy of the deceased with the need to settle their estate. It provides priority tiers for those reviewing your estate.

 

First, if a given digital asset has an online tool that can be used to express your wishes and you use it, that takes precedence. For example, if you set up a Legacy Contact on Facebook, the person you designate there would get precedence over your Digital Executor in gaining access to your account.

 

Next in line are your wishes, as expressed in legal documents like your Will or Power of Attorney. Those take priority over the Terms of Service of a given platform and can give the executor of your estate the power to gain access.

 

However, if you didn’t use online tools and there’s no legal documentation of your wishes, the third line of defense is the Terms of Service of each given platform. This can be problematic. Some Terms of Service stipulate that accounts (and all the information that goes with them) get deleted upon the user’s death, for example. This could mean that crucial correspondence or long treasured photos could vanish without a chance for them to be properly passed on.

 

This is why we advocate for a digital estate plan—and talking with your estate planning attorney about making sure you have one.

We Can Help with Your Legacy

At 1834, we pride ourselves on offering a holistic, personalized approach to wealth. That includes Estate Planning and Administration. When you work with us, we’ll get to know you and your needs—and offer solutions that help you pursue your personal goals, while also leaving the legacy you desire.

 

If you’re interested in getting started, please just reach out.