Why a digital legacy letter matters

Your online presence—email, cloud photos, subscriptions, domain names, social media, and cryptocurrency—can be as valuable and legally complex as physical property. A clear digital legacy letter reduces confusion, speeds estate settlement, and protects privacy. In my practice advising families on estate planning, clients who left concise, up-to-date digital instructions saved their loved ones hours of friction and, in some cases, prevented loss of assets tied to inaccessible accounts.

Authoritative guidance also recognizes digital assets as part of an estate. For general estate tax guidance see the IRS; for consumer-facing advice about digital planning and protecting accounts, see the Consumer Financial Protection Bureau (CFPB).

What should you include in a digital legacy letter?

Aim for clarity, completeness, and security. Keep the actual letter short and point to securely stored, detailed records (password manager, encrypted file, or hardware wallet). Below is a practical checklist you can adapt.

  • Identification and contacts

  • Full legal name, birth date, primary contact information.

  • Name and contact for your executor and a designated digital executor (if different).

  • Inventory of digital accounts and assets

  • Email accounts, social media (Facebook, Instagram, LinkedIn, Twitter/X), streaming services, cloud storage (Google Drive, iCloud, Dropbox), online financial accounts, investment platforms, online businesses, domain names, and app stores.

  • List each account with platform name, username/email, account purpose, and brief note on importance.

  • Access instructions and location of credentials

  • Where to find credentials: password manager name, encrypted file location, or physical backup location (e.g., safe deposit box).

  • If you store credentials outside a password manager, include steps to access them (location of key or combination) but avoid listing raw passwords in an unsecured letter.

  • Two-factor authentication (2FA) and recovery methods

  • Note whether accounts use SMS 2FA, authenticator apps, hardware keys (e.g., YubiKey), or recovery emails. Explain how to access authenticator tokens or whether an account recovery request will be needed.

  • Cryptocurrency and digital wallets

  • Specify wallet type (custodial vs. noncustodial), seed phrase or private key storage method, and whether funds are in a hardware wallet or exchange. For noncustodial wallets, seed phrases should be secured offline, ideally in a safety deposit box or physical safe; consider multi-signature arrangements for added security.

  • Digital files and media

  • Location of important photos, videos, documents, and any instructions for transfers or deletion. Include cloud folder paths and which files should be archived vs. deleted.

  • Online subscriptions and billing

  • List recurring subscriptions and where billing/payment information is stored so family can stop services and avoid surprise charges.

  • Social media and public presence instructions

  • For each profile, state whether you want the account deleted, memorialized, transferred, or left as-is. Include any public statement you authorize them to post.

  • Business-related accounts and intellectual property

  • Provide access instructions for business email, websites, hosting, client portals, and any licensing or IP file locations.

  • Legal & financial instructions tied to digital assets

  • Note any digital assets that have monetary value (domain names, e-commerce accounts, crypto) and whether they’re addressed in your will or trust.

  • Special considerations

  • Health data, medical portal access, and any online services tied to care (HIPAA considerations). Passwords to shared devices and children’s device accounts, if applicable.

How to store a digital legacy letter (secure options and trade-offs)

There’s no single right answer; use layered security that balances accessibility for heirs with protection against misuse.

  1. Password managers with emergency or legacy access
  • Use a reputable password manager (LastPass, 1Password, Bitwarden, etc.) and enable emergency access, family sharing, or legacy contact features where available. Store a short index in your letter that tells the executor how to request access.
  • Advantages: central, encrypted, can be updated easily. Risks: vendor lock-in or policy changes — include export instructions.
  1. Encrypted cloud storage
  • Save an encrypted document (PDF or text file) in cloud storage (Google Drive, OneDrive, iCloud) and give the location in the letter. Protect the file with strong encryption and a separate strong password.
  • Advantages: accessible from anywhere with credentials. Risks: cloud provider account access may be restricted after death without legal proof.
  1. Physical copies in secure locations
  • Store a printed, signed copy or cryptographic seed phrases in a safe deposit box or home safe. Give trusted persons the location and access process.
  • Advantages: resilient to online hacks. Risks: physical access problems (e.g., bank holds box until probate).
  1. Attorney or fiduciary escrow
  • Many estate attorneys will hold critical access information or instructions in escrow. This integrates with the legal estate plan and avoids disclosing credentials directly to family.
  • Advantages: professionally managed, aligned with legal documents. Risks: possible fees, slower access.
  1. Crypto-specific safeguards
  • Use hardware wallets and consider a multi-signature wallet or custodial solutions for large holdings. Document recovery steps carefully and never store seed phrases in an unencrypted cloud file.

Practical rule: store a short, human-readable digital legacy letter with pointers to where secure credentials are kept, rather than embedding raw passwords in the letter itself.

Step-by-step process to create and maintain your letter

  1. Make an inventory: spend an hour listing every online account and digital asset.
  2. Prioritize critical items: bank accounts, brokerage, health portals, and active subscriptions.
  3. Choose storage methods: pick one primary method (password manager recommended) and one backup (encrypted cloud or paper in a safe).
  4. Name a digital executor: this person should be tech-savvy and trustworthy; add a backup.
  5. Write clear, plain-language instructions: include what to do for each account (delete, memorialize, transfer) and where to find keys.
  6. Consult an estate attorney: ensure your legal documents (will, trust, power of attorney) reference digital assets and align with the letter.
  7. Review annually or after major life changes: new accounts, marriage, divorce, or large crypto transactions.

Common mistakes and how to avoid them

  • Storing all passwords in an unencrypted document indexed in your letter. Instead, use an encrypted password manager and list only how to access it.
  • Forgetting to include recovery options like trusted contacts, authenticator app backups, or alternate email addresses.
  • Assuming service providers will hand over access automatically. Each platform has its own policy; for instance, Google, Facebook, and Apple provide legacy/estate tools, but they differ in requirements.
  • Over-sharing: avoid listing raw passwords on paper kept in insecure places. Balance transparency with security.

Legal and practical limitations

A digital legacy letter is not a legal substitute for a will, trust, or power of attorney. Service providers’ terms of service and federal privacy laws (like HIPAA for medical records) may limit what third parties can access without proper legal authority. Consult an estate planning attorney to include language in legal documents that supports your digital wishes.

For executor-focused guidance, see our Digital Executor checklist and practical tips here: Digital Executor Duties: Practical Checklist for Executors. For help organizing passwords and keys, see our guide: Planning for Digital Assets: Passwords, Keys, and Access. If you hold cryptocurrency, review estate strategies in our article on protecting crypto assets: Protecting Digital Assets and Crypto in Your Estate Plan.

Real-world examples (anonymized)

  • A client’s family could not access a life insurance policy that was only reachable through an old email. Had the client listed recovery options and where to find the email credentials, the claim process would have been faster.
  • Another client used a password manager with emergency access for two designated people. When they died, the designated digital executor received access without needing a lengthy court process.

Updating, review schedule, and next steps

Treat a digital legacy letter as a living document. Review it at least once a year and any time you add a significant account or change passwords. When you revise, update the primary secure storage (password manager or encrypted file) and notify your digital executor of the process to obtain access.

Quick FAQs

  • Can a digital legacy letter replace a will? No. It’s a practical, non-legal guide for accessing accounts and expressing preferences—use it alongside legal estate documents.
  • Should I include passwords in the letter? Preferably not. Point to an encrypted password manager or other secure storage and document how to gain authorized access.
  • How do platforms handle accounts after death? Policies vary. Many platforms (Google, Facebook, Apple) offer legacy options; check provider help pages and document your wishes.

Sources and further reading

  • Consumer Financial Protection Bureau (CFPB) — guidance on digital estate planning (consumerfinance.gov)
  • IRS — general estate and gift tax information (irs.gov)
  • Platform-specific legacy tools (Apple Digital Legacy, Google Inactive Account Manager, Facebook memorialization) — consult provider help centers for current procedures.

Professional disclaimer

This article is educational and based on professional experience; it is not legal advice. For personalized planning—especially if you hold significant digital assets or cryptocurrency—consult a qualified estate planning attorney or financial advisor.

If you want, I can convert the checklist into a printable worksheet or a fillable template adapted for password managers and hardware wallets.