As more Americans move more and more of their lives online, estate planning as a process is evolving to – very necessarily – place a greater emphasis on protecting digital assets. Such assets can range from email accounts and social media profiles to online banking, cloud storage and digital photos.
For many, a host of digital assets are not just conveniences—they carry financial and sentimental value. Yet they are often overlooked in traditional estate planning approaches. To better ensure your unique digital assets are protected and properly managed after death or incapacity, you’ll need to take specific estate planning steps.
Getting started
Start by taking inventory. A comprehensive list of your digital assets should include login credentials, usernames and answers to security questions for each account. Include personal accounts like email, social media and photo-sharing services, as well as business-related platforms and accounts with stored data or documents. This list should also identify where important files are stored—whether on your computer, external drives, or in the cloud.
Once your inventory is complete, think about how you want each asset handled. Some accounts may hold sentimental value, such as a personal blog or a collection of family photos. Others, like online payment accounts or domain names, may have financial value. For each, specify whether you want the account closed, memorialized, transferred or preserved.
Wills and trusts can both play a role in managing digital assets. Your will should name a digital executor if your state allows it. They will be entrusted to manage your digital accounts according to your instructions. Make sure this appointment is backed by clear language granting access to digital assets. Without this authority, even a well-meaning executor may run into legal barriers due to privacy laws or terms of service agreements.
For assets that require ongoing management or privacy, a trust can be a better option. A revocable living trust can hold ownership of digital assets or designate a trustee to manage them. This arrangement may help avoid probate and give your trustee clearer authority to act quickly, especially when dealing with subscription-based services or platforms that delete inactive accounts after a set period.
It’s also important to store login credentials securely. Never include usernames and passwords directly in your will, which can become public once it goes through probate. Instead, keep this information in a secure digital vault or with your attorney, and leave instructions for how your digital executor can access it.
Digital asset planning is about more than convenience—it’s about protecting your legacy in an increasingly online world. By thinking ahead and working with an experienced legal team, you can better ensure your digital legacy is as thoughtfully preserved as you maintained it during your lifetime.