Digital Assets: An Important Part of Your Estate Plan

When people think of estate planning, they usually focus on things like their house, their financial accounts, personal property, or even family heirlooms. But in today’s world, a huge part of your life may exist online—and that part often gets overlooked when doing your estate planning.

The online part of your life is legally considered to be your “digital assets.” In other words: digital assets are anything you own or control in a digital form. Some are obvious, while others may easily be overlooked. Consider the following: 

• Online financial accounts: PayPal, Venmo, cryptocurrency wallets, or even online bank logins.

• Social media accounts: Such as Facebook, Instagram, YouTube, LinkedIn, X.

• Email accounts: These are often the key to accessing other accounts and where billing statements are received.

• Cloud Storage: Many of us have thousands of family pictures and videos saved on our iPhones and Android devices. These are usually also automatically backed up to an iCloud or Google Photos account.

• Digital subscriptions: People are increasingly embracing digital subscriptions for information, entertainment, and convenience—think streaming services, Kindle eBooks, and news and magazine subscriptions.

• Loyalty programs: Airline miles, hotel rewards, and retail points often have real value.

• Websites or domains: Common for many people who run a business or have a personal blog.

 Why Do Digital Assets Matter in Estate Planning?

By not including these in your estate planning, your heirs can face financial and/or sentimental loss and legal challenges to access. Digital assets aren’t automatically covered by a will or trust – you have to specifically include them. And many companies have strict privacy rules that can make access nearly impossible without proper planning.

 These situations are more common than you might think. Let’s look at a few real-life examples:

A friend told me about her father’s passing with thousands of airline miles saved up. Unfortunately, no one knew about them. By the time they found out, it was too late. The miles had expired, and over $1,000 worth of value was gone.

Several people have shared stories with me about losing access to all the photos and videos their family members had saved into an iPhone or Android cloud account simply because they didn’t know the password. Entire family and personal memories were essentially locked away.

I’ve had my own personal experience of not having my dad’s password for his Facebook account and being unable to take any action to close it or memorialize it. I knew the password was written down somewhere. I just couldn’t find it. For several years, all of his Facebook friends (including relatives) received that annual reminder to send him a “Happy Birthday” message. Some even contacted me to see if I was aware his account was still active. This went on embarrassingly until one day I got extremely lucky and found the password! What a relief that was.

 How Do You Include Digital Assets in Your Estate Plan?

1.    Start By Making a List
You need to know what you have, so write down all your digital assets. This includes logins, account numbers, and any description that might have value (financial or sentimental). Example: Write, “Gmail – main email, used for bank login recovery” or “iCloud – contains family photos and videos.”

 2.  Decide What Should Happen to Each Asset

• Do you want your Facebook page memorialized or deleted?

• Should your business website stay online or be shut down?

• Who should inherit your crypto wallet or reward points and how do they claim them?

 3.    Choose a “Digital Manager/Executor”
Name someone in your estate documents to manage your digital assets—without this, your family may need to go to court and hire an attorney just to gain access. Choosing someone who is tech-savvy enough to navigate logins, accounts, and company policies can be very helpful.

 4. Provide Secure Access
Never write your passwords in your will (that becomes public when probated). Instead, use:

• A password manager (like LastPass or 1Password).

• A secure written record stored with your attorney or in a safe deposit box.

• Built-in tools some platforms provide (for example, Facebook lets you choose a “legacy contact”; Google has an “Inactive Account Manager” setting).

 5. Add Instructions in Your Estate Documents.

Talk with your attorney about adding clear language in your will, trust, or power of attorney giving your chosen person authority to manage digital assets. Without this, even knowing your password may not be enough legally, or your family may encounter challenges accessing or managing them, as platforms often have restrictions on who can access accounts and data.

 6. Update Your List Regularly

If you’re like me, your information changes frequently: the password on accounts gets changed,  accounts get closed, new accounts get opened, and so on.

 Final Thoughts

Digital assets are just as much a part of your legacy as your home, your savings, or your jewelry box. Planning for them now is so important to save your loved ones from frustration, lost memories, or even financial loss.

Your online life is valuable—don’t let it disappear into cyberspace when you’re gone.

If you’d like step-by-step guidance, I go into much more detail on this topic in A Very Simple Estate Planning Guide. The book covers digital assets thoroughly, including why naming someone in your estate documents is essential, what options you have for social media accounts, and how to make sure your family has the legal authority they need without unnecessary legal battles.

Be sure to also check out my related post on Loyalty Rewards Programs