Estate planning is more than only about houses, bank accounts, and family heirlooms. Today, much of our lives exists online. From email accounts and online banking to social media profiles and cryptocurrency wallets, your “digital life” may contain valuable assets and important personal information.
If your family cannot access these accounts after your death or incapacity, it can create confusion, delays, and even financial loss. A good estate plan should include clear instructions for handling digital assets and online accounts.
What Are Digital Assets?
Digital assets include almost any online account or electronic record you use regularly. Common examples include email accounts, online banking and investment accounts, PayPal or Venmo accounts, social media profiles, cloud storage accounts, websites, online businesses, subscription services, airline reward programs, and password managers. Many people also store valuable family photographs and videos online without realizing how difficult they may become to access later.
Some digital assets have direct financial value, while others hold sentimental value. In either case, they are an important part of modern estate planning.
Why Digital Assets Matter in Estate Planning
Imagine a family trying to settle a loved one’s affairs after death. Bills may still be paid automatically through online accounts. Important financial records may exist only in an email inbox. Valuable cryptocurrency could be locked behind a forgotten password. Family photographs stored in the cloud may become inaccessible forever.
Without proper planning, loved ones may not even know certain accounts exist. Even when they do, online companies may refuse to provide access without legal authority. Some accounts may eventually be deleted due to inactivity.
Failing to plan for digital assets can create serious problems. Families may lose access to money or investment accounts. Identity theft risks may increase if accounts remain open and unmanaged. Automatic subscriptions and recurring payments can continue for months. Family members may argue over online photos, websites, or social media accounts. Probate administration can also become more difficult when financial records are hidden behind passwords and security systems.
A little preparation today can save your loved ones enormous stress later.
One of the best first steps is creating an inventory of your online accounts and digital assets. This inventory should identify the names of your accounts, the usernames or email addresses connected to them, and the purpose of each account. You should also note whether an account has financial value and provide instructions about what should happen to it after death or incapacity.
However, most estate planning attorneys recommend against placing passwords directly inside your will because wills often become public records during probate. Instead, passwords should be stored securely in a password manager or another protected location.
Several password management services can help organize this information safely. Popular options include 1Password, Bitwarden, and LastPass. These services allow users to securely store passwords and, in some cases, provide emergency access to trusted family members.
Use Online Legacy Tools
Many major technology companies now provide tools that allow users to decide what happens to their accounts after death or long-term inactivity.
For example, Google Inactive Account Manager allows users to choose trusted contacts who can receive access to certain Google data if the account becomes inactive. Apple’s Digital Legacy Program allows users to appoint Legacy Contacts who may request access to Apple accounts after death. Facebook also provides Memorialization Settings, which let users designate a legacy contact to manage certain parts of a memorialized account.
These tools are important because, under many state laws, instructions made directly through an online platform may override instructions written in a will or trust.
Should Digital Assets Be Included in Your Estate Plan?
Digital assets should absolutely be addressed in estate planning documents. A properly drafted will or trust can authorize an executor or trustee to manage digital property and online accounts. A financial power of attorney can also authorize a trusted person to access digital accounts if you become incapacitated.
Modern estate planning documents often contain language specifically authorizing fiduciaries to access online accounts, retrieve electronic records, manage digital property, close accounts, and handle cryptocurrency or online businesses. Without these provisions, even close family members may face resistance from online companies.
Still, sensitive passwords should generally not appear directly inside the estate planning documents themselves. Instead, the documents should refer to a separate, secure inventory of digital assets and login information.
Cryptocurrency Requires Special Attention
Cryptocurrency creates unique estate planning challenges because there is often no bank or customer service department available to help recover access. If private keys or recovery phrases are lost, the assets may become permanently inaccessible.
There have been many stories of families losing access to large amounts of cryptocurrency simply because nobody knew where the passwords or recovery phrases were stored.
Anyone who owns cryptocurrency should consider creating detailed instructions for trusted family members. Recovery phrases should be stored securely, and the location of wallet information should be communicated carefully. The goal is to balance strong security with practical accessibility for loved ones after death or incapacity.
Maryland Law on Digital Assets
Maryland has adopted a version of the Revised Uniform Fiduciary Access to Digital Assets Act, often called “RUFADAA.” This law helps executors, trustees, and agents acting under powers of attorney gain legal authority to access certain digital assets and electronic records.
Under Maryland law, estate planning documents can authorize fiduciaries to manage digital assets. However, the law also respects online instructions provided directly through account platforms such as Google or Apple. In some cases, those online instructions may override conflicting directions in a will or trust.
Maryland residents should make sure their wills, trusts, and powers of attorney contain modern language addressing digital assets and online accounts.
Useful Maryland resources include the Maryland Estates and Trusts Article and publications from the Maryland Register of Wills.
District of Columbia Law on Digital Assets
Washington, DC, has also adopted the Uniform Fiduciary Access to Digital Assets Act. The law allows executors, trustees, conservators, and agents under powers of attorney to request access to digital assets in certain situations.
The DC law specifically recognizes that users may provide instructions through online tools offered by technology companies. Those instructions may control who receives access to digital assets after death. The law also requires fiduciaries to act with care, loyalty, and confidentiality when handling digital property.
Useful legal resources for DC residents include the DC Uniform Fiduciary Access to Digital Assets Act and the DC Code Chapter on Digital Assets.
Your digital life is now part of your legacy. Online accounts may contain financial information, family memories, business records, and deeply personal information. Yet many families never think about digital assets until it is too late.
Creating a digital estate plan does not have to be complicated. A simple inventory of accounts, secure password storage, updated estate planning documents, and the use of online legacy tools can make an enormous difference for loved ones.
By planning ahead, you can help your family avoid unnecessary stress, confusion, delays, and financial loss. Protecting your digital life may become one of the most valuable parts of your estate plan.
