Why include online accounts in your estate plan?
Most people think of bank accounts and real estate when planning an estate, but digital assets are increasingly valuable and personal. Digital accounts can contain sensitive information, sentimental photos, business-related credentials, or financial value (for example, cryptocurrency or online businesses). Without clear direction, heirs can face blocked accounts, identity risks, or lost income. In my 15+ years advising clients on estate and financial planning, I’ve seen simple, documented instructions avoid months of friction and, in some cases, protect assets worth tens of thousands of dollars.
The law and platform rules both matter. Many states have adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) to give fiduciaries limited access to digital assets, but providers’ terms of service and federal rules can still affect what is possible. Always cross-check your instructions with current state law and platform policies (Uniform Law Commission; see provider terms).
Key legal and practical constraints
- State law varies: RUFADAA has been adopted in many states, but not all. RUFADAA permits a fiduciary (executor or agent under a power of attorney) to access certain kinds of digital assets if the account holder authorized it or if the provider’s terms allow it (Uniform Law Commission). Check your state’s status before relying solely on a will.
- Provider policies: Services such as Google, Facebook, and Apple have specific legacy/contact or memorialization options that may override general instructions in a will. For instance, some platforms allow an account to be memorialized or designate a legacy contact; others prohibit transferring login credentials entirely.
- Privacy and probate: A will is typically a public probate document. Avoid placing raw passwords or private keys in a will; instead store them securely and reference their location.
Practical step-by-step process
- Inventory every digital asset
- Make a list that includes: account name, URL, username, purpose, and executor instructions. Group by priority: financial (crypto, online brokerage), business (hosting, admin logins), personal (email, photos), and social (profiles, memorialization requests).
- Choose who will manage your digital estate
- Name a tech-savvy executor, successor trustee, or digital fiduciary in your estate documents. Confirm their willingness and provide them with instructions on where and how to find access data.
- Use secure storage—don’t put passwords in the will
- Store credentials and access instructions in a password manager with a legacy access feature, or in a sealed, secure document kept with your attorney or a trust company. Many password managers (e.g., LastPass, 1Password) offer emergency access or legacy options.
- Draft clear, actionable instructions
- Specify the desired outcome for each account: transfer, close, delete content, memorialize, or assign to a beneficiary. Include alternate contacts if platforms require a form or additional verification.
- Coordinate with other estate planning documents
- Reference your digital asset inventory and access plan in your will or trust without including sensitive details directly. A standalone digital asset directive or letter of instruction can hold the details while the will/trust names the responsible fiduciary.
- Handle cryptocurrencies carefully
- Never place private keys or seed phrases in a will. Use a trust or a custodial solution to transfer crypto outside of probate when possible. Consider multisignature wallets or hardware wallets stored with trusted custodians.
- Update regularly
- Review this inventory yearly or after major life events (marriage, divorce, business sale, new accounts). Platforms change features, and service terms can affect transferability.
Sample digital-asset clause (illustrative)
Note: This sample is for educational use only. Have an attorney customize language to your state and situation.
“I hereby authorize my executor/trustee to access, handle, delete, or transfer my digital assets, including email accounts, social media, cloud storage, and digital currency, as necessary to administer my estate, subject to applicable law and service-provider terms. My executor may access the location of my access credentials and take actions consistent with my documented instructions.”
Do not place passwords or private keys in a will; include only a reference to where the secure access instructions are stored.
Digital assets that commonly need directions
- Social media (Facebook, Instagram, TikTok): memorialize, delete, or transfer content. Use legacy contact features where available.
- Email accounts: set forwarding, account closure, or archival instructions.
- Cloud storage (Google Drive, Dropbox): instruct what files to preserve or distribute.
- Financial/cryptocurrency accounts: designate custodial transfers or trust-based ownership; provide instructions for private keys.
- Domains, websites, and online businesses: include admin logins, domain registrars, and hosting details.
Crypto-specific best practices
- Treat private keys like cash: store in a hardware wallet or with a trusted custodian.
- Prefer non-probate transfer mechanisms when possible: trusts, designated custodial services, or beneficiary designations at exchanges.
- Include recovery and contact information for exchange accounts—exchanges often require death certificates and other verification.
How service-provider tools fit in
Many platforms now offer built-in legacy controls:
- Facebook has a Legacy Contact option and a memorialization process.
- Google offers Inactive Account Manager for account access or deletion after inactivity.
- Apple has Digital Legacy for account access with an access key and contact.
Using these features is often faster than probate-based access and aligns with provider policies. Still, document your wishes in your estate plan and tell your fiduciary where to find legacy settings.
Executor and fiduciary duties with digital assets
Your named executor or trustee must:
- Locate the digital inventory and follow your instructions.
- Use probate or statutory authority when needed to access accounts (if providers require legal proof).
- Protect privacy and comply with data-protection laws—avoid unnecessary disclosure of personal information.
In practice, I advise clients to name separate fiduciaries for high-value digital businesses or complex crypto holdings, rather than one person handling all digital matters.
Interaction with traditional estate tools
Digital assets may or may not pass via your will. Accounts with beneficiary designations or accounts held in trust bypass probate. See our primer on how beneficiary designations interact with wills for details: How Beneficiary Designations Interact with Your Will (https://finhelp.io/glossary/how-beneficiary-designations-interact-with-your-will/). If you’re weighing options between a will and a trust for smoother transfer of digital property, review Wills vs. Trusts: Which Do You Need? (https://finhelp.io/glossary/wills-vs-trusts-which-do-you-need/).
For owners with cross-border accounts or audiences, consider international implications and document choices accordingly: International-Friendly Estate Documents: Wills and Powers That Work Abroad (https://finhelp.io/glossary/international-friendly-estate-documents-wills-and-powers-that-work-abroad/).
Common mistakes to avoid
- Storing passwords or private keys in an openly filed will (probate makes this public).
- Assuming all providers will honor a will—many require their own verification or deny transfer rights.
- Forgetting to update the inventory after account changes.
- Naming an executor who lacks technical ability or authority to act.
Quick checklist before you finish
- Inventory all accounts and classify them by priority.
- Name a digital fiduciary and get their consent.
- Store access information in a secure password manager with legacy access or with your attorney.
- Use platform legacy features where available.
- Consider trusts or custodial arrangements for high-value digital assets.
- Review annually and after major life events.
Final advice and next steps
Begin with a structured inventory and one or two clear directives for your most important accounts (email, cloud photos, financial/crypto). In my experience, clients who write down priorities and pair them with secure access solutions reduce confusion and legal cost for heirs.
Work with an estate attorney familiar with digital asset issues to draft enforceable language and to align your digital will with state law and platform terms. For tax or estate-value questions, consult the IRS guidance on estate taxes and the Consumer Financial Protection Bureau for consumer rights related to digital assets.
Professional disclaimer: This article is educational and does not constitute legal or tax advice. Laws and platform policies change; consult a licensed estate attorney in your state for personalized advice.
Sources and further reading
- Uniform Law Commission, Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA).
- Google, Inactive Account Manager and Digital Legacy pages.
- Facebook, Legacy Contact and Memorialization policies.
- Consumer Financial Protection Bureau (consumerfinance.gov) guidance on digital asset planning.
- Internal Revenue Service (irs.gov) resources on estate and gift tax.
