Today, more of our lives are stored online than ever before. From bank accounts and investment platforms to social media and digital photo albums, these assets hold both financial and sentimental value. Yet, many families overlook digital assets when creating an estate plan, which can create confusion and legal complications later.
Let’s explain what digital assets are, why they matter, and how families can include them in a clear, legally sound estate plan.
Defining Digital Assets
Digital assets include anything you own or manage online. This can range from email accounts, online banking, and cryptocurrency wallets to personal content like photos, videos, or blogs. Business-related platforms, websites, and digital storefronts are also part of this category.
Although these assets are intangible, they have real value. Some carry financial worth, such as PayPal accounts or online investment platforms, while others hold deep sentimental meaning, like decades of family photos stored in the cloud.
Why Planning Matters
When digital assets are not addressed in an estate plan, family members may struggle to access important information or close online accounts. Many platforms have strict privacy policies that prevent access without clear legal permission. This can lead to delays in settling financial matters or even the loss of valuable assets like cryptocurrency or business income.
By creating a detailed record of digital assets and granting proper authorization, you can make the process smoother for your executor and loved ones.
Including Digital Assets in an Estate Plan
The first step is to make a complete inventory of your digital assets. List accounts, usernames, and, where possible, how they can be accessed. For security, this information should be stored in a safe location, such as a password manager, rather than written in the will itself.
Next, update your estate planning documents to authorize someone—often your executor or a digital trustee—to manage these accounts after your passing. Under New York’s Revised Uniform Fiduciary Access to Digital Assets Act, this authorization allows your representative to handle accounts in line with your wishes.
Protecting Access and Security
While it’s important to give access, security remains a priority. Work with an estate planning attorney to draft clear instructions while keeping your private information safe. Avoid sharing passwords openly in legal documents, as these can become part of the public record. Instead, use secure storage solutions and reference them in your plan.
Regularly review and update your inventory and instructions, especially when opening new accounts or changing login details.
Taking the Next Step
Digital assets are now part of nearly every person’s legacy. Including them in your estate plan helps protect financial value, preserve family memories, and avoid unnecessary legal complications.
If you are preparing or updating your estate plan, speak with an attorney experienced in digital asset planning. This step will help your family handle these accounts with clarity and confidence when the time comes.
Protect your digital and traditional assets with a plan that leaves no detail overlooked. At Voelkl Law PC, we help families create clear, legally sound estate plans that cover everything—from bank accounts to digital profiles. Call 716-633-4030 to schedule a consultation today and take the next step toward securing your legacy for the people who matter most.