Estate Planning for Digital Assets

Think about the online accounts you use daily: banking apps, email, social media, cloud storage, photo libraries, and even cryptocurrency wallets. These digital assets don’t vanish when we pass away, and without proper planning, they can create confusion, delays, or even loss for loved ones trying to manage your affairs. 

Digital assets often contain sensitive information, sentimental value, or actual financial worth. And unlike physical possessions, they usually come with terms of service agreements that prevent others from accessing them without explicit permission, even in emergencies. 

What Counts as a Digital Asset?

Digital assets include more than just cryptocurrency. Here’s a quick breakdown: 

• • Financial: Online banking accounts, investment platforms, PayPal, Venmo, crypto wallets (e.g., Coinbase, Ledger)
  • Personal: Email accounts, cloud storage (e.g., Google Drive, iCloud), digital photos, and videos 
  • Social: Facebook, Instagram, LinkedIn, X (formerly Twitter)
  • Business: Domain names, e-commerce accounts, revenue-generating blogs, or digital storefronts
  • Subscriptions: Streaming services, digital news, rewards programs 

If it’s online and tied to your name or finances, it’s worth accounting for. 

How to Store and Share Digital Access 

It’s not enough to write down passwords in a notebook. Most platforms restrict access unless specific legal steps are taken in advance. Here’s how to stay ahead: 

• • Use a password manager like LastPass, 1Password, or Dashlane to securely store your credentials. 
  • Designate a digital executor, someone you trust to manage these accounts after you’re gone. 
  • Include legal language in your estate plan that authorizes access under the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA). 
  • Keep a list of accounts (not passwords) with your estate documents so your family knows what exists and where to look. 

Why HIPAA and Access Matter in Emergencies

Many digital accounts include health-related information, such as online patient portals, insurance apps, or wearable device data. Without proper authorization, even your spouse or adult children may be blocked from accessing essential information during a crisis. 

This is where a HIPAA Authorization Form becomes crucial.  It gives your designated agent the legal right to view and share your medical information. It also helps connect the dots if your digital health data is stored in separate systems or apps. 

Where to Include Digital Assets in Your Estate Plan

To make sure your digital assets don’t fall through the cracks, consider addressing them in three key places:

1. Letter of Intent: Use this to share your preferences around sentimental or non-financial digital accounts, such as photo libraries, social media, or family blogs.
2. Will or Trust Documents: Include language that grants your digital executor authority to access, manage, and close accounts as needed. Work with your attorney to ensure it aligns with RUFADAA.
3. HIPAA Authorization: Ensure anyone who may need to access your digital health data is covered legally.

A Modern Plan for a Modern Life

As our lives become more digital, estate planning must evolve with us. Including your online accounts in your plan isn’t just smart; it’s essential. Whether it’s financial security or cherished memories, a little planning now can prevent a lot of stress later. 

Not sure where to start? 

We offer a complimentary 10-minute guidance call to help you consider the next steps.