21 Jul Digital Estate Planning: What Happens to Your Online Accounts When You Die?
We live much of our lives online these days. From account passwords and photo libraries to cryptocurrency wallets and NFTs, almost everyone holds a few digital assets. However, digital assets often get overlooked in traditional estate plans.
Without clear instructions, your loved ones could be left facing some major hurdles—or else forced to give up access entirely. Here’s how to make sure your digital assets stay protected and get handled according to your wishes.
What Are Digital Assets?
Your digital assets include any accounts, files, or content that exists in a digital format. If it holds financial or sentimental value, you need to include it in your estate plan.
Common examples of digital assets include:
- Online investment accounts
- Email and social media profiles
- Cloud storage (Google Drive, iCloud, Dropbox)
- Digital photos and videos
- NFTs and cryptocurrency wallets
- Domain names or trademarks
- Subscription services (Netflix, Spotify, Chewy)
Note: Bank accounts aren’t typically considered digital assets, but the login credentials to access them are. That’s why it’s important to plan for digital access, and to name a beneficiary for your bank accounts.
Can Digital Assets Be Inherited?
Yes, but only if you’ve included them in your estate plan. Unlike physical property, digital assets are often password-protected and governed by complex terms of service. Without the right planning, they may become permanently inaccessible.
To ensure that your digital assets are managed according to your wishes, here’s what you need to do.
- Create a digital asset inventory (usernames and account types, but not passwords)
- Name a digital executor or fiduciary in your will
- Specify your wishes for each asset (delete, transfer, archive, etc.)
- Store login credentials securely using a password manager or legacy contact options
What Happens If You Don’t Include Your Digital Assets?
Imagine losing your spouse and being unable to access their phone, email, or shared photo library, simply because no one else has the login. It happens more often than you think, especially with face ID, two-factor authentication, and increasingly tight security protocols.
Without a plan, your family could have to deal with:
- Locked accounts they can’t access
- Lost sentimental items like photos or videos
- Delayed estate administration procedures
- Unclaimed financial assets, like crypto wallets or online income
Some platforms, such as Facebook, Google, and Apple, allow you to designate a legacy contact. Others do not, which is why including digital assets in your estate plan is such an essential step.
How to Include Digital Assets in Your Estate Plan
Step 1: Take Inventory
List all your digital accounts, subscriptions, and valuable digital content.
Step 2: Secure Your Logins
Use a password manager or write down credentials and store them in a secure location
Step 3: Assign a Digital Executor
This person will manage your digital accounts and follow your instructions.
Step 4: Document Your Wishes
Clarify in writing whether each account should be closed, transferred, or memorialized
Step 5: Review Your Plan
As technology changes, so should your digital estate plan. Schedule a review at least once every three years.
A Special Note on NFTs and Cryptocurrency
NFTs and crypto wallets are decentralized and anonymous. That means if your heirs don’t know they exist, or don’t have the private keys, they’ll be lost forever.
To protect them:
- Include your crypto and NFT holdings in your will or trust
- Leave clear instructions on how to locate and access the accounts
- Make sure someone you trust has access to the private keys or recovery phrases
Don’t Leave Your Digital Assets Vulnerable
Your digital footprint is part of your legacy. From family photos to financial accounts, you need to plan ahead to make sure your loved ones aren’t left guessing.
At Phelps LaClair, we can help you protect your digital assets so nothing meaningful or valuable gets lost. Contact us today to schedule a free consultation at one of our Phoenix area locations.
Images used under creative commons license – commercial use (7/14/2025). Photo by Alesia Kozik on Pexels