Introduction
Digital accounts now hold financial value, sentimental records, and legal obligations. Left undocumented, they can stall probate, trigger fraud, or leave heirs unable to collect digital income. In my 15+ years advising clients on estate planning, a clear digital inventory plus security rules saves time, reduces conflict, and preserves value.
Why this matters
- Digital accounts can contain bank info, recurring income (royalties, ad revenue, subscription payouts), or access to property such as domain names and intellectual property.
- Platforms differ: some allow a legal representative access with a court order; others provide legacy/contact tools or outright deletion policies.
- Cryptocurrency and noncustodial wallets are especially fragile: losing private keys usually means permanent loss.
Step-by-step checklist to inventory accounts
- Start broad, then narrow
- Make a master list of account types (email, social, banking, employer portals, subscriptions, cloud storage, e-commerce, domain registrars, cryptocurrency wallets, digital contract repositories).
- Ask family and executors where they think accounts might exist; people often forget secondary or old accounts.
- Record essential details (but don’t store them insecurely)
- For each account note: platform, username/email, account purpose, whether it has funds or recurring payments, last login, recovery options (phone, recovery email), two-factor authentication (2FA) method, and whether a legacy contact is set.
- Avoid a plaintext file on an unsecured computer. Instead, use a secure password manager or an encrypted document kept with other estate documents.
- Map access methods
- Note whether access is password-based, uses an authenticator app, hardware key, or a recovery phrase (crypto).
- For authenticator apps and hardware keys, record where backups are stored or whether the device is co-located with other estate documents.
- Identify high-value or high-risk accounts first
- Financial accounts, accounts tied to business revenue, domain registrars, cloud backups, and crypto wallets belong in the top tier.
- Update frequently
- Review the inventory annually and after major life events (marriage, divorce, career change, relocation, business sale).
Secure storage and tools
- Password manager: Use a reputable password manager (1Password, Bitwarden, LastPass, etc.) to store credentials securely. Set up a shared emergency access feature or a designated trusted contact where available.
- Encrypted vault: For people who prefer not to use a commercial password manager, an encrypted file (e.g., VeraCrypt container) stored on an external drive in a safe deposit box is an option.
- Hardware wallets and cold storage: For crypto, prefer hardware wallets (Ledger, Trezor) or use multi-signature custody. Store recovery phrases offline in a fire-resistant safe and consider splitting seed phrase parts with trusted parties.
- Physical backup location: Keep a copy of the inventory or instructions in a safe deposit box or fireproof safe. Include access instructions or where to find the digital vault.
Legal and estate-planning steps
- Name a digital executor: Appoint someone tech-competent and trustworthy, and consider naming a successor. Make this appointment in your will or a separate digital asset memorandum, and clarify their powers.
- Use clear instructions: Provide the digital executor written instructions about which accounts to preserve, transfer, or close.
- Check state law and RUFADAA: Many states have adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which governs how fiduciaries can access digital accounts. Because adoption and details vary by state, work with an estate attorney familiar with your jurisdiction (Uniform Law Commission).
- Avoid putting plain passwords in your will: Wills become public in probate; don’t include sensitive credentials in documents that could enter the public record.
Platform-specific legacy features (examples)
- Google: Offers an Inactive Account Manager where you can name contacts and set inactivity timeouts.
- Facebook: Lets you set a legacy contact or request account deletion.
- Apple: Provides Legacy Contact options in Apple ID settings.
- Financial institutions: Many require a court order for access; meanwhile, beneficiary designations and joint ownership can provide direct routes to transfer assets.
Cryptocurrency: special considerations
- Custodial vs. noncustodial: Custodial platforms (coinbase, exchanges) may allow account recovery through KYC and legal requests; noncustodial wallets (private keys/seed phrases) require the key holder’s private data — without it, assets are often irretrievable.
- Plan keys and access carefully: If you hold private keys, document where the hardware wallet and recovery phrase are stored and who may access them. Consider multi-signature arrangements for larger holdings.
- Tax implications: Cryptocurrency in an estate may create tax reporting and basis issues. Coordinate with a tax professional—see IRS guidance and talk to your CPA.
Practical security rules I use with clients
- Principle of least exposure: Only provide full credentials to a trusted digital executor or keep them in an emergency-access mechanism in a password manager.
- Use multi-factor authentication everywhere that supports it and ensure backup methods are recorded (e.g., backup codes stored in the same secure vault).
- Separate personal and professional accounts where feasible to reduce cross-account exposure.
- Consider a staggered instruction set: immediate steps (freeze, notify), short-term (gather income streams), long-term (transfer IP, domain names).
Common mistakes to avoid
- Storing passwords in plain documents on the desktop or emailing credentials to family.
- Relying solely on obituary or next-of-kin claims—many platforms require additional proof or court orders.
- Forgetting to update the inventory after account changes, or leaving only one person with access to everything.
- Mishandling crypto seed phrases—any single mistake can lock heirs out permanently.
Sample digital-account inventory template (brief)
- Account type: Email
- Provider: Gmail
- Username: your.email@example.com
- Recovery: recovery-email@example.com, phone +1-XXX-XXX-XXXX
- 2FA: Authenticator app (backup codes in vault)
- Legacy: Google Inactive Account Manager set; contact: Jane Doe
- Value/notes: Personal correspondence; links to cloud photos
Checklist for executor handoff
- Location of master inventory and password manager instructions.
- Consent forms and legal authority (copy of will, letters testamentary or court documents if required).
- Steps for high-value accounts (notify banks, freeze accounts where appropriate, secure hardware wallets).
- Contact list: attorney, financial advisor, primary beneficiaries, platform support pages.
FAQs (short)
Q: Should I list passwords in my will?
A: No. Wills often become public. Use a secure vault and give instructions to your executor instead.
Q: Is a digital executor legally recognized?
A: Many states recognize fiduciary access under RUFADAA, but procedures vary. Naming a digitally competent executor and clarifying access in legal documents is best.
Q: What if I use an authenticator app?
A: Record backup codes or store an encrypted backup of the authenticator; list devices that hold the app.
Resources and next steps
- Read our deep-dive on digital estate transfers: Digital Estate Blueprints: Passing Online Accounts, Domain Names, and Crypto
- Tools for executors and digital workflows: Executor Tools: Checklists and Digital Workflows for Faster Estate Settlement
- Extra security strategies: Protecting Digital Assets: Strategies Beyond Passwords
Author’s note and professional disclaimer
In my practice advising clients on estate planning and digital asset security, I’ve seen well-prepared inventories reduce executor stress and preserve value. This article is educational and not legal or tax advice. Consult an estate planning attorney and your tax advisor about state-specific rules and tax implications (see IRS.gov and the Consumer Financial Protection Bureau for general info).
Sources and further reading
- Uniform Law Commission — Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) (uniformlaws.org)
- IRS — Estate and Gift Taxes (irs.gov)
- Consumer Financial Protection Bureau — Managing money after someone dies (consumerfinance.gov)
