Digital Estate Planning: Protecting Your Online Accounts and Digital Assets

When most people think about estate planning, they picture wills, trusts, and property. But today, much of our lives exists online. From email accounts and social media to online banking and digital photos, these items are known as digital assets. Digital estate planning helps make sure these assets are protected and handled properly if something happens to you.

What Are Digital Assets?

Digital assets include anything you access or own online. Some common examples are:

• Email accounts

• Social media profiles

• Online bank and investment accounts

• Retirement accounts accessed online

• Digital photos and videos

• Cloud storage files

• Subscription services

• Cryptocurrency and digital wallets

Even though these items aren’t physical, they still have value. Some may be sentimental, while others may be financial.

Why Digital Estate Planning Is Important

Without a plan, your loved ones may struggle to access important accounts or information. Many online platforms have strict privacy rules. This means family members could be locked out of accounts, even if they need access to pay bills or manage finances.

Digital estate planning helps:

• Reduce stress for loved ones

• Prevent loss of valuable information or money

• Protect privacy and prevent identity theft

• Make sure your wishes are followed

Planning ahead gives clear instructions and avoids confusion during an already difficult time.

What Happens If You Don’t Plan?

If there is no digital estate plan, online accounts may remain open and unmanaged. Important emails could be lost. Bills might go unpaid. Social media accounts could stay active or even be misused.

In some cases, families must go through a legal process just to gain access to basic information. This can take time and cost money. A simple plan can help prevent these problems.

How to Create a Digital Estate Plan

Digital estate planning doesn’t have to be complicated. Here are some basic steps to get started:

1. Make a List of Digital Accounts

Create a list of your online accounts and digital assets. This might include financial accounts, email, cloud storage, and social media. Don’t list passwords in your will, but do make sure someone knows where to find access instructions.

2. Choose a Digital Executor

A digital executor is someone you trust to manage your online accounts after your passing. This person may be the same as your main executor or someone different. Their role is to follow your wishes regarding digital assets.

3. Use Legal Documents

Estate planning documents can include instructions for handling digital assets. These documents can give legal permission for someone to access and manage accounts. An estate planning attorney can help make sure everything follows state laws.

4. Review Platform Settings

Some platforms allow you to choose what happens to your account if you pass away. For example, certain social media sites let you name a legacy contact or request account deletion. Reviewing these settings is an important part of digital planning.

Special Considerations for Cryptocurrency

Cryptocurrency requires extra attention. Unlike bank accounts, there may be no way to recover digital currency without proper access keys. If these keys are lost, the assets may be gone forever.

Clear instructions and secure storage of access information are essential. This is one area where legal and technical guidance is especially helpful.

How Digital Planning Fits Into Your Overall Estate Plan

Digital estate planning should work together with your will, trust, and other legal documents. It should not be handled separately or as an afterthought. When done correctly, it supports a smooth transition of both physical and digital assets.

At Grant, Riffkin & Strauss, P.C., digital assets are considered an important part of a complete estate plan. Addressing them early helps protect families from unnecessary complications later.

When Should You Update Your Digital Estate Plan?

You should review your digital estate plan anytime there is a major life change, such as:

• Marriage or divorce

• Birth of a child

• Changes in financial accounts

• New digital assets or platforms

Technology changes quickly, so it’s a good idea to review your plan every few years.

Final Thoughts

Digital estate planning is no longer optional. As more of our lives move online, it becomes just as important as planning for homes, bank accounts, and personal belongings. Taking the time to protect your digital assets can save your loved ones time, stress, and confusion.

A well-prepared estate plan ensures that nothing important—online or offline—is overlooked. By planning ahead, you can feel confident that your digital life will be handled the way you intend.