Digital Estate

Digital Assets in Your Estate Plan

By Patricia Larson, J.D. • March 18, 2026 • 9 min read
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Quick answer: Digital assets—cryptocurrency, online accounts, passwords, social media, domain names, digital files—are often worth thousands but frequently forgotten in estate plans. Without proper planning, your executor may not be able to access these assets, causing them to be permanently lost. Create a secure digital asset inventory, authorize executor access in your estate documents, and store credentials safely outside your will.

The average person has 130+ online accounts. Many own cryptocurrency, digital photos worth preserving, online businesses, or valuable domain names. Yet most estate plans completely ignore these assets, creating enormous problems for executors trying to settle digital estates.

What Are Digital Assets?

Digital assets are any property stored in digital form or accessible only online:

Financial Digital Assets

Business and Income-Generating Assets

Personal Digital Assets

Subscriptions and Services

According to a 2025 study by McAfee, the average person's digital assets are valued at over $55,000, yet 75% have no plan for them in their estate documents.

Why Digital Assets Are Problematic in Estate Planning

1. Access Restrictions

Most online platforms' terms of service restrict account access to the account holder. Even with a death certificate, executors often can't access accounts without proper authorization.

2. Federal Privacy Laws

The Stored Communications Act (SCA) makes it illegal for service providers to disclose contents of electronic communications—including to executors—without either:

3. Password Protection

Even if legally authorized to access accounts, executors need passwords. If you haven't documented them securely, accounts may be permanently inaccessible.

4. Cryptocurrency Irreversibility

Cryptocurrency is particularly problematic:

5. Time-Sensitive Issues

Some digital assets require immediate attention:

Legal Framework: RUFADAA

Most states have adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which creates a legal framework for executor access to digital assets:

Priority of Control

  1. Online tool instructions (like Facebook's legacy contact) take priority
  2. Your will or trust provisions authorizing or restricting access
  3. Terms of service of the platform (if you haven't specified otherwise)

What RUFADAA Allows

If you authorize it in your estate documents, your executor can access:

Critical: You must include specific language in your will or trust authorizing your executor to access digital assets. Generic executor powers may not be sufficient.

⚠️ Important: Check if your state has adopted RUFADAA and what version. Some states have variations that affect digital asset access rights.

How to Include Digital Assets in Your Estate Plan

Step 1: Create a Digital Asset Inventory

Document every digital account and asset:

For each account, include:

Sample categories for your inventory:

Step 2: Handle Passwords Securely

Option 1: Use a Password Manager

Best practice: Use a password manager like LastPass, 1Password, or Bitwarden:

Give your executor:

Option 2: Encrypted Spreadsheet or Document

Option 3: Digital Estate Services

⚠️ NEVER put passwords in your will! Wills become public during probate. Anyone could access your accounts. Store passwords separately in a secure location your executor knows about.

Step 3: Add Digital Asset Clauses to Your Estate Documents

Your will or trust should include:

Executor Authorization:

"I authorize my executor to access, manage, distribute, and dispose of my digital assets, including but not limited to email accounts, social media, cloud storage, cryptocurrency wallets, domain names, and any other digitally stored information or property. This authorization includes the power to access content, manage accounts, and terminate or transfer services."

Specific Instructions:

Example clauses:

Location of Inventory:

"A complete inventory of my digital assets and access instructions is stored in [location]. My executor is authorized to use this information to access and manage these assets."

Step 4: Use Platform-Specific Tools

Many platforms offer legacy or memorialization features:

Facebook

Google

Apple iCloud

Instagram

Twitter/X

LinkedIn

Cryptocurrency Estate Planning

Cryptocurrency requires special attention due to its unique nature:

Private Keys and Recovery Phrases

Cryptocurrency ownership is based on possession of private keys or recovery phrases (12-24 word seed phrases). Without these, the cryptocurrency is irreversibly lost.

Best practices:

⚠️ NEVER include private keys or recovery phrases in your will! Your will becomes public during probate. Anyone with access could steal your cryptocurrency. Instead, store them securely and tell your executor where to find them.

Document All Cryptocurrency Holdings

In your digital asset inventory, list:

Consider a Cryptocurrency-Specific Trust

For significant cryptocurrency holdings, some people create a separate trust specifically for crypto assets with a tech-savvy trustee who understands blockchain technology.

Tax Considerations

Cryptocurrency receives a step-up in basis at death (for tax purposes, heirs' cost basis is the fair market value at date of death, not what you originally paid). This can eliminate capital gains taxes on appreciation during your lifetime.

However, your estate may owe estate taxes if total assets exceed exemption amounts.

Domain Names and Online Businesses

Domain Names

Premium domain names can be extremely valuable. Ensure your executor can access:

Include specific instructions: Should domains be maintained, sold, or allowed to expire?

Online Businesses

If you own an income-generating online business:

Common Mistakes to Avoid

1. Forgetting to Update Your Digital Inventory

You create new accounts constantly. Review and update your digital asset inventory at least annually.

2. Storing Everything in One Place

If your only password list is on your laptop and the laptop is stolen, everything is lost. Use redundant, secure storage.

3. Not Telling Your Executor Where to Find Information

The best digital asset plan is useless if your executor doesn't know it exists. Have a conversation with your executor about where digital information is stored.

4. Using Unclear or Outdated Instructions

"My email password is on a note in my desk" isn't helpful if you changed the password two years ago.

5. Ignoring Two-Factor Authentication

If accounts use 2FA tied to your phone number or a physical device, document how your executor can access these. Consider app-based 2FA with backup codes stored securely.

6. Forgetting About Digital-Only Subscriptions

Your executor needs to cancel subscriptions to stop ongoing charges. Document all recurring payments.

Protect Your Digital Legacy

Trust & Will's estate planning includes digital asset provisions and guidance on secure storage.

Get Started →

Digital Asset Planning Checklist

Complete digital asset planning requires:

  1. ✓ Create comprehensive digital asset inventory
  2. ✓ Use password manager or secure storage for credentials
  3. ✓ Document cryptocurrency wallets and store keys securely
  4. ✓ Add digital asset authorization clause to will/trust
  5. ✓ Set up platform-specific legacy tools (Facebook, Google, Apple)
  6. ✓ Tell executor where digital information is stored
  7. ✓ Review and update inventory annually
  8. ✓ Consider digital estate planning service for complex situations
  9. ✓ Document two-factor authentication details
  10. ✓ Include specific instructions for valuable digital assets

Legal Disclaimer: This article is for informational purposes only and does not constitute legal, financial, or technical advice. Digital asset laws vary by state and are rapidly evolving. Consult qualified professionals for personalized guidance.

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Frequently Asked Questions

What are digital assets in an estate plan?
Digital assets include online accounts (email, social media), cryptocurrency wallets, digital files (photos, documents), domain names, online businesses, digital media (eBooks, music), subscriptions, and any other property stored digitally or accessed online. All should be documented in your estate plan.
Can my executor access my online accounts after I die?
It depends on state law and platform terms of service. The Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), adopted by most states, gives executors limited access to digital assets if authorized in your estate planning documents. Without explicit authorization, many platforms restrict access even to executors.
How do I pass cryptocurrency to my heirs?
Store private keys or recovery phrases securely (encrypted file, safe deposit box), document all wallets and exchanges in your digital asset inventory, give your executor access instructions, and specify in your will who inherits each cryptocurrency holding. Never include raw private keys in your will (it becomes public record).
Should I include passwords in my will?
NO—never put passwords in your will, which becomes public during probate. Instead, use a password manager with a master password given to your executor, create an encrypted digital asset inventory stored securely outside your will, or use a digital estate planning service.
What happens to my social media accounts when I die?
It depends on your instructions and platform policies. Facebook allows memorialization or deletion. Instagram can be memorialized. Twitter/X accounts can be deleted by estate contact. LinkedIn removes profiles after death. Without your instructions, your executor may struggle to access or manage these accounts.

About the Author: Patricia Larson, J.D., is an estate planning attorney with 20 years of experience in elder law and trust administration. She specializes in digital asset planning and cryptocurrency estate strategies.