Planning for Digital Assets: Secure Your Online Legacy

Your email inbox holds years of correspondence. Your cloud storage contains thousands of family photos. Your cryptocurrency wallet stores real financial value. Yet when was the last time you thought about what happens to all of this when you’re gone?

While most of us have wills and estate plans for our tangible assets, we often overlook the vast digital footprint we leave behind. From social media accounts and cloud storage to cryptocurrency wallets and online businesses, our digital assets represent significant financial, sentimental, and practical value. Yet, without proper planning, these assets can become inaccessible, lost, or mismanaged when we’re no longer around.

What Are Digital Assets?

Digital assets encompass everything you own or control in the digital realm. This includes:

Financial Digital Assets:

• Cryptocurrency and NFTs
• Online bank and investment accounts
• PayPal, Venmo, and digital payment platforms
• Reward points and airline miles
• Digital business assets and revenue streams

Personal Digital Assets:

• Email accounts
• Social media profiles (Facebook, Instagram, LinkedIn, Twitter/X)
• Photo and video storage (Google Photos, iCloud, Dropbox)
• Personal blogs and websites
• Digital documents and files

Subscription and Entertainment Assets:

• Streaming service accounts
• Gaming accounts and digital game libraries
• E-books, audiobooks, and digital media
• Domain names and web hosting

Professional Digital Assets:

• Work-related accounts and files
• Intellectual property stored digitally
• Client databases and business contacts

Why Digital Asset Planning Matters

The consequences of neglecting digital asset planning can be severe. Loved ones may struggle to access important financial accounts, precious family photos could be lost forever, and valuable cryptocurrency might become permanently inaccessible. Identity theft can occur if accounts aren’t properly secured after death, and subscription services continue charging indefinitely.

Beyond the practical concerns, there’s an emotional dimension. Your digital presence tells your story. Without planning, family members have no way to preserve meaningful memories or appropriately memorialize your online presence.

Creating Your Digital Estate Plan

1. Take Inventory

Start by creating a comprehensive list of all your digital assets. Include:

• Account names and usernames
• URLs or platform names
• The approximate value (financial or sentimental)
• Location of any associated files

Don’t try to document passwords yet—just create the master list. Use a spreadsheet or dedicated digital estate planning tool to organize everything.

2. Designate a Digital Executor

Choose someone tech-savvy and trustworthy to manage your digital assets. This person should:

• Understand basic technology and security
• Be organized and detail-oriented
• Know your wishes regarding different types of accounts
• Be legally designated in your will or estate documents

Consider naming a backup digital executor as well. Make sure both individuals know they’ve been selected and understand the responsibility.

3. Secure Your Credentials

Password management is crucial. Use a reputable password manager like 1Password, Bitwarden, or LastPass to store all your login credentials. These tools offer:

• Emergency access features for designated individuals
• Encrypted storage of passwords and security questions
• The ability to share specific credentials without revealing your master password

Store your master password and recovery information in a secure physical location, such as a safe deposit box or home safe. Provide instructions on how your digital executor can gain access.

4. Document Your Wishes

For each category of digital assets, specify what you want to happen:

Social Media: Do you want accounts memorialized, deleted, or downloaded? Photos and Videos: Who should receive copies? Should anything be deleted? Financial Accounts: How should assets be distributed? Email: Should it be archived, forwarded, or deleted after a certain period? Websites and Blogs: Should they remain active, be archived, or shut down?

Write these instructions clearly and update them as your preferences change.

5. Understand Platform Policies

Different platforms have varying policies for handling deceased users’ accounts:

• Facebook offers memorialization and allows you to designate a legacy contact
• Google has an Inactive Account Manager where you can set what happens after a period of inactivity
• Apple requires a court order for iCloud access, even from family members
• Instagram allows accounts to be memorialized or deleted
• Twitter/X will deactivate accounts upon receiving proper documentation

Review the policies for your most important accounts and adjust your plan accordingly.

6. Address Legal Considerations

Digital estate planning intersects with several legal areas:

Terms of Service: Many platforms prohibit sharing login credentials, which can create conflicts with access needs.

State Laws: Digital asset laws vary by location. The Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) has been adopted in many U.S. states, giving executors legal authority over digital assets.

Federal Laws: The Stored Communications Act can restrict access to electronic communications, even for executors.

Consult with an estate planning attorney familiar with digital assets to ensure your plan is legally sound.

Special Considerations for High-Value Digital Assets

Cryptocurrency and NFTs

Digital currency requires special attention due to its irreversible nature. If access is lost, the assets are gone forever. Consider:

• Using a hardware wallet with clear succession instructions
• Creating multi-signature wallets requiring multiple parties to access funds
• Providing detailed instructions about private keys and seed phrases
• Considering a cryptocurrency-specialized trust

Never store private keys or seed phrases in email or online documents. Physical storage in a secure location is essential.

Online Businesses

If you run an online business, your digital estate plan should include:

• Access to all business platforms and accounts
• Client contact information and ongoing commitments
• Financial account details and payment processor access
• Instructions for maintaining or selling the business
• Domain name and hosting information

Digital Intellectual Property

Creators should document:

• Ownership and licensing agreements
• Revenue streams from digital products
• Access to publishing and distribution platforms
• Collaborators and co-creators
• Instructions for managing royalties and residuals

Maintaining Your Digital Estate Plan

Digital asset planning isn’t a one-time task. Review and update your plan regularly:

• Annually: Review your asset inventory and update any changes
• After major life events: Marriage, divorce, births, or deaths in the family
• When opening new accounts: Add them to your inventory immediately
• When closing accounts: Remove them from your list
• As technology changes: Update instructions for new platforms or tools

Set a recurring calendar reminder to review your digital estate plan each year.

Tools to Help You Get Started

Several services can simplify digital estate planning:

Password Managers with Emergency Access: 1Password, Bitwarden, Dashlane Digital Estate Planning Services: Everplans, GoodTrust, Cake Secure Storage: Safe deposit boxes, home safes, fireproof document boxes Legal Services: Estate planning attorneys specializing in digital assets

Taking the First Step

Digital estate planning can feel overwhelming, but you don’t need to complete everything at once. Start with these manageable steps:

1. This week: Create a list of your ten most important digital accounts
2. This month: Set up a password manager and begin storing credentials
3. This quarter: Choose a digital executor and have a conversation with them
4. This year: Consult with an estate planning attorney to formalize your plan