Digital Estate Planning: Managing Your Online Assets

In today’s connected world, our financial and personal lives are increasingly digital. From online banking and investment platforms to social media, cloud storage and digital currencies, much of what we value no longer exists solely on paper. However, when most people think about estate planning, they focus on physical and financial property like homes, retirement accounts, personal belongings, but overlook their growing digital footprint.

Digital estate planning is the process of identifying, organizing and preparing instructions for what happens to your online accounts and electronic files if you become incapacitated or after your death. It is a crucial, and often forgotten, part of a complete estate plan.

What Exactly Are Digital Assets?

Digital assets encompass any electronic record or online account that has personal, financial or sentimental value. While the range of these assets continues to expand, they generally fall into several categories:

Financial accounts: Online banking, investment and cryptocurrency accounts.
Personal accounts: Email, social media and messaging applications.
Digital property: Photos, videos and documents stored in the cloud or on personal devices.
Online businesses and domains: Websites, blogs and e-commerce stores.
Subscriptions and memberships: Streaming services, shopping accounts or rewards programs.
Loyalty and travel rewards: Airline miles, hotel points, and retail rewards.

Many of these accounts contain important data or financial value and nearly all require credentials to access. Without planning, heirs and fiduciaries may face legal or technical barriers when trying to locate or manage them.

Why Digital Estate Planning Matters

Ignoring digital assets can create real challenges during estate administration. Loved ones may not know what exists, where to find it or how to access it. In some cases, privacy laws and service agreements can prevent others from logging into or closing your accounts without explicit authorization.

A well-structured digital estate plan helps to:

Prevent financial loss. Online investment accounts, cryptocurrency wallets or business assets could become inaccessible without the right credentials or instructions.
Protect personal memories. Digital photos, videos and correspondence can hold immense sentimental value and deserve to be preserved for family members.
Reduce the risk of identity theft. Unattended accounts are vulnerable to hacking or misuse.
Simplify estate administration. A clear record of digital assets saves time, expense and confusion for executors and family members.

In short, digital estate planning ensures that your online life is handled with the same care and precision as your physical and financial legacy.

Four Steps to Building a Digital Estate Plan

Take Inventory of Your Digital Assets

Start by listing all online accounts, apps and digital files that have personal or financial significance. Include where each account is held, its purpose and how it can be accessed. For accounts that require passwords, consider using a secure password manager. Many password managers allow you to designate a trusted contact who can gain access if you are incapacitated or deceased.

Designate a Digital Executor

A digital executor is the individual responsible for managing your digital assets upon death. Some states legally recognize this role, allowing the person to work alongside your traditional estate executor. Their responsibilities might include closing social media accounts, transferring ownership of digital files or managing online subscriptions. Choose someone who is both trustworthy and comfortable navigating technology.

Integrate Digital Assets into Your Legal Documents

Your will, trust and powers of attorney should specifically reference your digital assets. These documents should authorize your fiduciaries to access, manage or close your online accounts in accordance with applicable laws. Most states, like Michigan and Florida, have adopted a statutory version of the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which provides a legal framework granting fiduciaries limited access to digital accounts—so long as you have provided them with written consent in your estate planning documents.

Review Platform-Specific Options

Many major technology companies now offer tools for managing digital legacies. For example, Google’s Inactive Account Manager allows you to share account data or delete your account after a set period of inactivity. Apple’s Digital Legacy Program lets you name legacy contacts who can access your Apple ID data after your passing. Reviewing and activating these settings can greatly ease the transition for family members later.

Keeping Your Plan Current

Like other elements of your estate plan, your digital plan should be reviewed and updated regularly. As you open new accounts, change passwords or adopt new technologies, make sure your inventory stays current. It is also important to discuss your digital estate plan with your financial planner, attorney and anyone who will have fiduciary responsibilities. Coordination among your professional advisors helps ensure that your wishes are clearly documented and legally enforceable.

Advisor Insight

Digital estate planning represents the next evolution of thoughtful financial and legacy planning. While it may seem like a small detail, addressing your online presence can prevent significant complications for loved ones and protect both financial and personal information.

At Greenleaf Trust, we encourage our clients to view digital estate planning as an extension of their comprehensive estate strategy. Taking the time to document and safeguard your digital assets ensures your affairs are managed smoothly and your legacy, both online and offline, is preserved with care.