Twenty years ago, estate planning focused on wills, trusts, and tangible property. Today, it must also account for a growing inventory of digital assets — from email accounts and crypto wallets to cloud-stored files and social media profiles. With so much of our financial and personal lives now online, digital security has become an essential part of protecting your legacy.
Cybercrime isn’t just targeting corporations anymore. Identity theft, digital fraud, and account breaches increasingly impact everyday individuals — and yes, even estates. According to the FTC, identity theft related to deceased individuals is on the rise, and unattended online accounts are prime targets. That’s why a modern estate plan needs to be more than financial. It needs to be digital and secure.
Understanding Digital Assets and Their Risks
When most people think of estate planning, they picture tangible items: a home, a retirement account, a cherished heirloom. But in today’s digital-first world, there’s an entirely separate category of property that often goes overlooked — your digital assets. These include anything stored online or on your devices that holds personal, financial, or sentimental value. And without the right planning, they can become vulnerable, or even lost, after death.
Digital assets encompass any online account or file that holds financial, functional, or sentimental value. These may include:
- Financial accounts: Online banking, investment platforms, PayPal, and Venmo.
- Cryptocurrency wallets: Bitcoin, Ethereum, or other tokens secured with private keys.
- Social media profiles: Facebook, LinkedIn, and Instagram accounts that reflect your personal or professional life.
- Email accounts: Central hubs for important records, logins, and communications.
- Cloud storage – Documents and photos in services like iCloud, Google Drive, or Dropbox.
- Online businesses or digital storefronts – From Shopify to Substack to Etsy.
- Subscription services or loyalty programs – With points or stored value.
These assets can hold real monetary or emotional value—but they’re often left out of estate plans, leaving them vulnerable to:
- Unauthorized Access – Without documented access, loved ones may be locked out of critical accounts.
- Identity Theft – The FTC warns that inactive digital accounts are common entry points for fraudsters (FTC.gov).
- Legal Complications – Without digital-specific directives in your estate plan, accounts can become frozen or lost, leading to delays and disputes during probate.
A 2025 report from Clarity Legal Group emphasizes that including digital assets in your estate plan “not only helps ensure your wishes are followed, but also reduces the risk of digital theft and confusion among heirs.”
Legal Considerations: RUFADAA and Why Explicit Consent Matters
The law is beginning to catch up with the reality of digital estates. The Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) has now been adopted by 47 U.S. states as of early 2025. This law gives individuals the ability to authorize fiduciaries—such as an executor, trustee, or agent—to access and manage their digital assets after death.
Here’s what to know:
- You must give explicit consent. Even with your passwords, a fiduciary can’t access your accounts unless you’ve authorized it in estate documents. Without that consent, platforms may legally deny access.
- Each provider has its own policy. Google’s Inactive Account Manager or Facebook’s Legacy Contact tool allow users to set up posthumous access—but these don’t replace legal instructions.
- Privacy still matters. Consider which accounts you want heirs to access, and which you’d prefer remain private or be deleted.
RUFADAA is a powerful legal framework, but it only works if your estate plan includes specific language granting access. Without it, your digital assets could be locked indefinitely.
Building Digital Security into Your Estate Plan
Digital estate planning doesn’t require a computer science degree, but it does require a few intentional steps. Here’s where to start:
1. Create a Digital Asset Inventory
List out your digital assets, including financial accounts, crypto holdings, online business platforms, cloud storage, and device passwords. Update this list annually and store it securely.
2. Use a Password Manager
Services like 1Password, Bitwarden, or LastPass allow you to store and organize all your credentials in one encrypted vault. Most offer “emergency access” options so a trusted person can gain entry if needed.
3. Appoint a Digital Executor
Name someone tech-savvy and trustworthy who can handle your digital accounts. This can be a separate role from your primary executor, and it should be clearly described in your will or trust.
4. Include Digital Instructions in Legal Documents
Explicitly authorize your executor to access, manage, transfer, or close digital accounts. Make sure these permissions align with RUFADAA requirements and are reviewed by an estate attorney.
5. Review and Revisit
Technology evolves quickly. The platforms you use today might not exist in five years. Reviewing your digital estate will be part of your broader annual financial check-in.
Conclusion
Your online presence is part of your legacy, and in today’s world, it can be just as valuable as a home, a retirement account, or a family heirloom. Without the right protections in place, your digital assets could fall into the wrong hands, be lost to your heirs, or create legal confusion during probate.
By building cybersecurity into your estate plan, just as you would with tax strategies or trusts, you create clarity, security, and peace of mind for the people who matter most.
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