Protecting Your Digital Assets in Your Estate Plan

Protecting Your Digital Assets in Your Estate Plan

Including Social Media Accounts, Cryptocurrencies, and Online Businesses


In today’s digital age, our lives are increasingly intertwined with technology. From social media profiles to cryptocurrency wallets and online businesses, many of us own valuable—and sometimes irreplaceable—digital assets. Yet, when it comes to estate planning, these assets are often overlooked. Failing to include them in your plan can lead to lost opportunities, financial losses, or even legal complications for your loved ones after you’re gone.


In this blog post, we’ll explore how to protect your digital assets in your estate plan, covering everything from social media accounts to cryptocurrencies and online businesses.


What Are Digital Assets?

Digital assets encompass any electronically stored content or information that holds value. They can be divided into several categories:


  1. Personal Digital Assets :

    • Social media accounts (e.g., Facebook, Instagram, LinkedIn)
    • Email accounts (e.g., Gmail, Outlook)
    • Photos, videos, and documents stored in the cloud

  2. Financial Digital Assets :

    • Cryptocurrencies (e.g., Bitcoin, Ethereum)
    • Online banking accounts
    • Loyalty program memberships (e.g., airline miles, credit card rewards)

  3. Business Digital Assets :

    • Domain names and websites
    • E-commerce platforms (e.g., Shopify stores, Etsy shops)
    • Intellectual property like patents, trademarks, or copyrighted material

  4. Other Digital Property :

    • Streaming service subscriptions (e.g., Netflix, Spotify)
    • Gaming accounts and virtual goods
    • Smart home devices and IoT systems

Each type of digital asset requires specific considerations in your estate plan to ensure they’re properly managed or transferred.


Why Include Digital Assets in Your Estate Plan?

Ignoring digital assets in your estate plan can have serious consequences:


  • Lost Value : Cryptocurrencies, domain names, and online businesses can represent significant financial worth. Without access, these assets may be lost forever.
  • Emotional Loss : Personal photos, messages, and memories stored digitally could vanish if no one knows how to retrieve them.
  • Legal Issues : Accessing someone else’s digital accounts without proper authorization can violate terms of service agreements or privacy laws.
  • Security Risks : Unsecured accounts left behind can become targets for hackers or identity thieves.

By addressing digital assets proactively, you can safeguard their value and ensure your wishes are respected.


Steps to Protect Your Digital Assets

1. Take Inventory of Your Digital Assets

The first step is creating a comprehensive list of all your digital assets. Include:

  • Account names and URLs
  • Usernames and passwords (stored securely—more on this below)
  • Descriptions of what each asset entails and its estimated value

For example:

  • “Facebook account: Used for personal communication; sentimental value.”
  • “Bitcoin wallet: Contains $50,000 worth of cryptocurrency.”

Regularly update this inventory as you acquire new assets or change credentials.


2. Store Login Information Securely

Never include login details directly in your will—it becomes a public document during probate. Instead:

  • Use a password manager like LastPass or 1Password to store encrypted credentials.
  • Provide instructions for accessing the password manager in a secure location, such as a safe deposit box or with your attorney.

Alternatively, consider using a digital legacy service designed specifically for managing posthumous access to accounts.


3. Designate a Digital Executor

A digital executor is someone you trust to manage your digital assets after your death. This person should:

  • Be tech-savvy enough to navigate various platforms.
  • Understand your wishes regarding each asset (e.g., memorializing social media accounts vs. deleting them).
  • Have authority under your estate plan to act on your behalf.

Clearly outline their responsibilities in your will or trust.


4. Specify Your Wishes for Each Asset

Decide what you want done with each digital asset and document your preferences. Examples include:

  • Social Media Accounts : Choose between deactivating, memorializing, or transferring ownership. Platforms like Facebook and Google offer tools for legacy contact designation.
  • Cryptocurrencies : Ensure your beneficiaries know where to find private keys or recovery phrases. Consider setting up a multi-signature wallet for added security.
  • Online Businesses : Outline whether the business should continue operating, be sold, or shut down. Provide clear instructions for transitioning ownership.

5. Update Beneficiary Designations

Some digital assets, like PayPal balances or investment accounts holding cryptocurrencies, allow you to name beneficiaries. Make sure these designations align with your overall estate plan.


6. Address Legal and Privacy Concerns

Accessing another person’s digital accounts can raise legal issues due to federal laws like the Computer Fraud and Abuse Act (CFAA) or state-specific regulations. To avoid problems:

  • Review platform-specific policies for handling deceased users’ accounts.
  • Grant explicit permission in your estate planning documents for your executor to access your accounts.

Consult an attorney familiar with digital estate planning to ensure compliance with applicable laws.


Special Considerations for Key Digital Assets

1. Cryptocurrencies

Cryptocurrencies pose unique challenges because they rely on private keys for access. If these keys are lost, the funds are irretrievable. Tips for protecting crypto assets:

  • Store private keys and recovery phrases in a fireproof, waterproof safe or use a hardware wallet.
  • Document step-by-step instructions for accessing your wallets.
  • Educate your heirs about the importance of keeping this information confidential.

2. Online Businesses

If you run an e-commerce store, blog, or other online venture, decide whether it should remain operational or be liquidated. Provide detailed guidance on:

  • How to manage day-to-day operations temporarily.
  • Contact information for vendors, clients, and employees.
  • Financial records and payment processing details.

3. Social Media Accounts

Most major platforms have policies for handling accounts of deceased users:

  • Facebook : Allows memorialization or removal upon request by a verified family member or executor.
  • Instagram : Offers similar options but requires proof of death.
  • Google : Provides the Inactive Account Manager feature to designate a trusted contact.

Familiarize yourself with these policies and incorporate them into your plan.


Final Thoughts

As our lives become more digitized, protecting digital assets has become an essential part of estate planning. By taking inventory, securing access, designating a digital executor, and specifying your wishes, you can ensure your digital legacy is preserved and passed on according to your intentions.


Don’t wait until it’s too late—start documenting your digital assets today. And remember, navigating this process can be complex, so consult with an experienced estate planning attorney to ensure your plan is thorough and legally sound.


Have questions about including digital assets in your estate plan? Share them in the comments below—we’d love to help! Together, let’s make sure your digital footprint remains intact for future generations.

Back to blog