In an age where so much of our lives are lived online, it’s easy to forget that our digital footprint doesn’t simply vanish when we pass away. From cherished family photos stored in the cloud to valuable cryptocurrency and online banking records, our digital assets can hold immense emotional and financial value. Yet, when it comes to estate planning, many people still focus only on tangible property and traditional financial accounts, overlooking the importance of their digital legacy.
So, what happens to your digital life when you’re gone? And how can you ensure your online assets are handled according to your wishes?
Below, our friends from Vayman & Teitelbaum, P.C. discuss who inherits the rights to someone’s online life after they have passed away.
What Are Digital Assets?
Digital assets are any online records or content you own or control. These can include:
- Email accounts
- Social media profiles (Facebook, Instagram, X/Twitter, LinkedIn)
- Cloud storage (Google Drive, Dropbox, iCloud)
- Digital photos, videos, and documents
- Online banking and PayPal accounts
- Cryptocurrency wallets (Bitcoin, Ethereum, etc.)
- Domain names and blogs
- Streaming or subscription accounts (Netflix, Spotify, etc.)
- Loyalty points and digital gift cards
Some of these may have sentimental value, while others could represent real financial worth.
The question is: who will access or control them after your death?
How Digital Assets Are Handled In Probate
Unlike physical assets, digital assets come with unique challenges in probate. Many online accounts are protected by passwords, two-factor authentication, and user agreements that restrict third-party access, even by your loved ones. If not explicitly included in your estate plan, digital assets can become inaccessible or lost entirely.
In the absence of clear instructions, survivors may need to obtain a court order or navigate lengthy processes to access their accounts. And even then, success is not guaranteed. Privacy laws and terms of service agreements often limit the actions that executors and heirs can legally take.
This is why proactively including digital assets in your estate plan is so important.
Steps To Include Digital Assets In Your Estate Plan
Make a digital asset inventory:
Start by listing your important online accounts, passwords (using a password manager or encrypted file), and where your digital assets are stored. Include login details for critical services, such as email, cloud storage, financial accounts, and cryptocurrency.
Decide who should have access:
Identify a trusted person to manage your digital assets. This could be your executor or a separate “digital executor,” depending on your state or province’s laws. Some jurisdictions recognize this role legally, while others may not—so check with an estate planning attorney.
Provide clear instructions:
Clearly state what should happen with each digital asset. Should your social media accounts be memorialized or deleted? Should someone take over your blog or download all your cloud-stored photos? Be specific.
Update your will or trust:
Include a clause in your estate plan that grants your chosen representative the authority to access and manage your digital assets. Make sure it complies with applicable laws, such as the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) in many U.S. states or relevant Canadian legislation.
Use available tools:
Some companies offer tools to help users manage their accounts after they pass away. For example, Facebook allows users to name a “legacy contact” to manage their profile, while Google offers the “Inactive Account Manager” to handle data if your account becomes inactive.
Why It Matters
Neglecting digital assets can lead to lost memories, inaccessible financial accounts, or even identity theft. Imagine a family unable to retrieve meaningful photos or locked out of a crypto wallet containing thousands of dollars. These aren’t just hypothetical scenarios; they happen every day.
By planning ahead, you can ensure your digital legacy is preserved and your loved ones are not left with unnecessary stress or confusion.
Your digital life is part of your real life, and it deserves the same level of care and planning. Whether it’s financial, sentimental, or both, your online presence holds value. By inventorying your digital assets, assigning a digital executor, and providing clear instructions, you take a critical step toward ensuring your legacy, both physical and virtual, is preserved and protected.
Speak with a probate lawyer to make sure your plan covers your entire life, not just the parts you can hold in your hands.