Quick overview

Digital estate planning brings your online life into your broader estate plan. It reduces the risk of lost accounts, inaccessible intellectual property, or stranded cryptocurrency and prevents family disputes or costly court steps to gain access. This article lays out what to inventory, how to secure access, legal considerations (including state laws), and practical templates and steps you can implement today.

Why this matters now

More of our money, relationships, and creative work live online than ever. Social media profiles, business websites, digital photos, and cryptocurrency wallets often carry monetary and sentimental value. Without clear direction, heirs may face prolonged legal fights, lost income streams, or permanent loss of family memories. Many states have adopted statutes based on the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), but platform terms of service and state laws still vary—so planning remains essential (Uniform Law Commission; Consumer Financial Protection Bureau).

Types of digital assets to include

  • Social media: Facebook, Instagram, Twitter/X, LinkedIn. (Platforms often have legacy or memorialization settings—review them.)
  • Financial and transactional: Online banking, PayPal, Venmo, investment accounts, and cryptocurrency wallets (custodial and non-custodial).
  • Digital property and businesses: Blogs, e-commerce stores, domains, and income-generating content.
  • Cloud storage and email: Google Drive, iCloud, Dropbox, and personal email accounts that may contain important documents.
  • Media libraries and subscriptions: Photos, videos, music libraries, domain names, and paid accounts.
  • Credentials and two-factor authentication (2FA) devices: Password managers, authenticator apps, security keys.

Practical steps to build a digital estate plan

  1. Create a Digital Asset Inventory
  • List account names, usernames, URLs, purpose, and whether the account generates value.
  • Note recovery options (backup email, phone number, 2FA method) and where secrets live.
  • Keep the inventory updated at least annually or when major accounts change.
  1. Use a Secure Method to Store Access Information
  • Use a reputable password manager (1Password, LastPass, Bitwarden) and enable its emergency access feature or legacy access options.
  • Avoid plaintext lists in drawers or unencrypted cloud notes.
  • For non-custodial crypto wallets, document seed phrases carefully and consider hardware wallets stored in a safe deposit box or with a trusted third party.
  1. Appoint a Digital Executor or Include Digital Instructions in Legal Documents
  • Name a trusted person (digital executor) who understands tech or will work with your attorney.
  • Add explicit instructions in your will or in a separate legally recognized memorandum. Some states accept a separate “digital asset memorandum” while others require explicit will language—confirm with an estate attorney.
  1. Address Platform-Specific Tools and Terms of Service
  • Configure legacy contacts or memorialization settings where available (e.g., Facebook, Google Inactive Account Manager).
  • Understand each platform’s terms of service: some prohibit credential sharing, others allow assigned fiduciary access under state law.
  1. Think Carefully About Two-Factor Authentication
  • Provide instructions for 2FA recovery. Consider using an authenticator app backed up by the password manager or physical backup codes kept in a secure place.
  • For high-value crypto, avoid storing seed phrases in online-only formats. Use offline, encrypted storage.
  1. Coordinate with Your Overall Estate Plan
  • Explicitly reference digital assets in your will, trust, or power of attorney as appropriate. Make sure executors and trustees know where to find the inventory and how to use it.

Legal and privacy considerations

  • State law variability: Many states have adopted statutes modeled on RUFADAA to allow fiduciaries access to digital assets under certain conditions, but adoption and interpretation vary—consult up-to-date resources or an estate attorney (Uniform Law Commission).
  • Terms of service matter: Even with state statutes, platforms’ terms and privacy policies affect how and what information can be released to heirs. Some platforms provide memorialization or legacy features; others may require a court order.
  • Credential sharing and legal risk: Sharing passwords may violate platform terms or raise legal risks in some cases. A better approach is to use service features designed for transfer or to provide fiduciary access through legal authorization.
  • Cryptocurrency: Non-custodial wallets operate outside traditional legal control—access is controlled by private keys and seed phrases. If heirs lack keys, the assets may be irretrievable.

Special considerations for cryptocurrency

  • Differentiate custodial vs non-custodial wallets: Custodial services (Coinbase, Kraken) may cooperate with fiduciaries under court process; non-custodial wallets (hardware wallets, self-custody) rely entirely on key control.
  • Consider multi-signature wallets for business or high-value holdings—this can simplify transfer but requires upfront setup and documentation.
  • Avoid storing seed phrases in clear text. Use encrypted backups and consider splitting seed storage (e.g., Shamir’s Secret Sharing or separate secure locations) with clear instructions for heirs.

How to communicate the plan

  • Tell your executor and a trusted family member where to find the inventory and how to use it; document the process rather than handing over credentials casually.
  • Provide a short, secure orientation for the person you name—share who to contact (attorney, financial advisor, crypto custodian) and where important documents live.

Example scenarios from practice

In my practice I’ve helped a client whose primary business was a membership website. Without access, memberships lapsed and revenue stopped, harming both the family and subscribers. We set up a plan: password manager emergency access, a written memorandum directing domain transfer, and an assignable login via a legal trust. In another case, a family could not access a deceased parent’s accounts because 2FA was tied to an old phone; a simple step of listing backup codes would have avoided that delay.

Common pitfalls and how to avoid them

  • Not updating the inventory: Schedule an annual review and after life events (marriage, divorce, business sale).
  • Assuming platforms will make assets available: They may not without proper authorization or court orders.
  • Over-sharing: Don’t leave unencrypted backups accessible to anyone. Strike a balance between access and security.

Template language and recommended clauses

Below is a sample short clause you can discuss with an attorney to adapt to your state laws:

“I hereby grant my named personal representative and any person I appoint as my digital assets fiduciary authority to access, manage, copy, transfer, and delete my digital accounts and assets in accordance with applicable law and the terms of service of the account providers. My password manager and the accompanying secure memorandum contain instructions and access details for these assets.”

Be cautious: legal language should be reviewed by an estate attorney to ensure compliance with state statutes and to coordinate with powers of attorney and trusts.

Tools and resources

Next steps checklist (quick)

  • Inventory accounts and mark high-value assets.
  • Choose a digital executor and discuss responsibilities.
  • Store credentials securely with emergency access.
  • Add clear legal instructions in your will/trust and review annually.
  • Consult an estate attorney for state-specific requirements.

Final notes and professional disclaimer

Digital estate planning sits at the intersection of technology, contract law, and estate law. The guidance above is educational and based on professional experience and current best practices—laws and platform policies change. This article does not constitute legal advice. Consult a licensed estate attorney in your state to draft enforceable clauses and to confirm how RUFADAA and local statutes apply to your situation. For related estate topics on FinHelp, see our guides on digital assets and estate updates linked above.