In today’s world, much of our wealth and personal lives are stored online. From cryptocurrency wallets and online investment accounts to social media profiles and family photos stored in the cloud, these assets make up a growing category of property often called “digital wealth.” Yet, many traditional estate plans fail to account for digital assets, which can leave heirs locked out of valuable or sentimental property.
At Kierman Law, we help clients create estate plans that address both traditional assets and the digital lives we now lead. Here are key steps to ensure your digital wealth is preserved and properly transferred to loved ones.
1. Take Inventory of Your Digital Assets
Begin by listing all of your digital property. This may include:
- Financial Assets: Cryptocurrency (Bitcoin, Ethereum, etc.), online investment or trading accounts, PayPal or Venmo balances, and online bank accounts.
- Business Assets: Websites, online stores, domain names, blogs, and monetized social media accounts.
- Personal Assets: Email accounts, social media profiles, photo and video libraries stored in the cloud, subscription services, and digital collections such as e-books, music, and game libraries.
Document where each asset is held, its approximate value, and any usernames or associated emails.
2. Secure Access Information
Unlike tangible property, digital assets often require passwords, encryption keys, or multi-factor authentication for access. Without these details, even rightful heirs may be unable to retrieve them.
- Store login credentials in a secure password manager.
- Keep backup codes and digital wallet keys safely recorded.
- Provide instructions to a trusted person on how to access this information after your death.
3. Name a Digital Executor
Some states allow you to appoint a “digital executor” in your estate plan—someone responsible for managing your digital assets after death. Even if your state does not formally recognize this role, naming a trusted person to oversee your online property provides clarity. This person can handle closing
accounts, transferring digital currency, and preserving online memories.
4. Incorporate Digital Assets Into Your Estate Plan
Your will or trust should include specific instructions for digital assets. This may involve:
- Giving heirs the authority to access and manage your online accounts.
- Clarifying who inherits cryptocurrency, business websites, or other digital valuables.
- Authorizing fiduciaries under the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), adopted by Arizona and many other states, to access your accounts according to your wishes.
5. Protect Privacy and Security
While it is important to provide access, it is equally important to protect sensitive information. Never include passwords directly in your will, as wills become public records after probate. Instead, maintain a separate, secure inventory of digital credentials that your executor can access privately
6. Update Regularly
Technology changes quickly, and so do your accounts. Review your list of digital assets annually and update your estate plan to reflect new platforms, security changes, and evolving laws.
Final Thoughts
Digital wealth is real wealth. Without proper planning, online accounts can be lost, cryptocurrency can become inaccessible, and valuable digital property may disappear. By taking proactive steps now, you can ensure your digital assets are preserved and passed on according to your wishes.
At Kierman Law, we can help you build an estate plan that protects both your traditional and digital legacies.
