Estate Planning for Digital Assets: How to Protect Your Online Accounts and Information

Crosswhite Law | Estate Planning

One of the most commonly overlooked aspects of estate planning is digital assets. While many people think of digital assets as financial accounts like cryptocurrency or online banking, they also include personal and sentimental items such as email accounts, social media profiles, and cloud storage.

Despite owning a wide range of digital assets, many individuals never address how those assets will be accessed or managed after death or incapacity. Without proper planning, loved ones may face significant challenges locating, accessing, or controlling important digital information.

What Are Digital Assets?

Digital assets are electronic records or accounts that you own or control. They may have financial, personal, or sentimental value and are typically accessed through the internet using computers, smartphones, or other devices.

Some digital assets have clear monetary value, while others are meaningful for personal or family reasons. Both require planning to ensure they are not lost or inaccessible.

Common Types of Digital Assets

Financial Digital Assets

• Cryptocurrency (Bitcoin, Ethereum)
• Online banking and investment accounts
• Payment platforms (PayPal, Venmo, Cash App)
• E-commerce accounts (Etsy, Shopify)
• Digital wallets
• Rewards and loyalty programs

Personal and Sentimental Assets

• Social media accounts (Facebook, Instagram, X/Twitter)
• Email accounts (Gmail, Outlook)
• Cloud storage (Google Drive, Dropbox, iCloud)
• Photos and videos stored online
• Personal devices such as smartphones and tablets
• Websites, blogs, and domain names

Business Digital Assets

• Business websites and online storefronts
• Client databases and digital files
• Business email systems
• Intellectual property (trademarks, copyrights, digital content)

Why Digital Asset Planning Matters

Digital assets are often protected by encryption, passwords, and privacy laws, which can make access difficult—even for family members.

Without a clear plan:

• Accounts may become permanently inaccessible
• Financial value may be lost
• Important business or personal information may be difficult to recover
• Ownership and authority may become unclear

Planning ahead ensures your fiduciaries can act efficiently and in accordance with your wishes.

How Digital Assets Fit Into Your Estate Plan

North Carolina has adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA). This law allows fiduciaries—such as executors, trustees, and agents under a power of attorney—to manage digital assets under certain conditions.

However, access is not automatic.

To ensure your fiduciary has proper authority, your estate plan should:

• Explicitly authorize access to digital assets
• Be consistent with platform-specific terms of service
• Clearly identify who has authority to manage digital accounts

Without proper authorization, even legally appointed individuals may face limitations.

Steps to Include Digital Assets in Your Estate Plan

A comprehensive estate plan should address how your digital assets are accessed, managed, and distributed.

Create an Inventory of Digital Assets – Maintain a secure, up-to-date list of your accounts, including:

• Account names and platforms
• Usernames
• Access instructions (stored securely—not in your will)
• Two-factor authentication details

Use Platform-Specific Legacy Tools – Many platforms offer built-in planning options:

• Apple and Facebook allow you to designate a legacy contact
• Google offers an Inactive Account Manager

These tools can simplify access and management after death.

Appoint a Digital Executor – Designate a trusted individual to manage your digital assets. This person may be the same as your executor or someone different with specific technical knowledge.

Provide clear instructions and ensure they know how to locate your digital asset inventory.

Avoid Storing Sensitive Information in Your Will – Wills become public during probate. Do not include passwords or private keys directly in your will. Instead, store sensitive information securely and provide access instructions separately.

Build a Complete and Modern Estate Plan

In today’s increasingly digital world, estate planning must go beyond physical assets. Your online presence, financial accounts, and digital property are all part of your legacy.

A well-structured estate plan ensures that:

• Your digital assets are not lost or overlooked
• Your loved ones can access important information
• Your wishes are carried out efficiently and securely

Work with an Experienced Estate Planning Attorney

Digital asset planning requires both legal and practical considerations. At Crosswhite Law, we help clients create estate plans that account for both traditional and digital assets.

Whether you are starting a new estate plan or updating an existing one, our attorneys will guide you through the process and help you build a strategy that protects every aspect of your legacy.

Schedule a confidential consultation today:
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