Why Your Estate Plan Should Include Digital Assets

As our lives become increasingly digital, thoughtful estate planning now extends well beyond physical and financial assets. From cloud-stored family photos to cryptocurrency and online subscriptions, your digital footprint holds both emotional and financial value. Ensuring these assets are properly managed after your death or incapacity is an essential component of a modern estate strategy.

What Are Digital Assets?

Digital assets are any electronic records or online accounts you own or control. These include, but are not limited to:

• Files and data stored in the cloud (e.g., Dropbox, Google Drive, iCloud)
• Photos, videos, and documents on computers or mobile devices
• Cryptocurrencies like Bitcoin
• Online banking and investment accounts
• Email and social media accounts
• Streaming and subscription services (e.g., Amazon, Netflix, Hulu, Spotify)
• Website domains and blogs (including written content)
• Loyalty and rewards programs (e.g., frequent flyer miles)
• Tax preparation and financial software licenses

These assets are typically governed by a platform’s Terms of Service Agreement (TOSA), which may limit or restrict transfer upon death unless proper planning is in place.

RUFADAA: The Legal Framework

As of late 2024, 47 states and the District of Columbia have adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA). Delaware, Louisiana, and Massachusetts still follow earlier legislation (UFADAA or state-specific rules).

RUFADAA allows individuals to designate who may access their digital assets and how, using a three-tiered approach:

The Three-Tiered Access Hierarchy

1. Online Tools
   Service providers like Google, Apple, and Facebook offer settings that allow users to name a legacy contact or specify how their digital data should be handled. If used, these tools override instructions in estate planning documents and provider TOSAs.

2. Legal Estate Documents
   If no online tool is available (or used), digital access can be granted through a will, power of attorney, or trust—provided these documents include clear, specific provisions for digital asset management.

3. Court Orders
   Without an online tool or legal documentation, fiduciaries may have to petition a court for access, a process that can be time-consuming and uncertain.

Important Note: Even with a valid estate plan, explicit user consent is critical. Service providers often default to privacy restrictions unless access has been clearly granted in advance.

Digital Access Settings from Major Platforms

Here are some tools and settings available from major digital service providers:

• Apple – Add a Legacy Contact
  Navigate to: Settings > [Your Name] > Sign-In & Security > Legacy Contact
  https://support.apple.com/en-us/102631

• Google – Inactive Account Manager
  Navigate to: myaccount.google.com > Data & Privacy > Make a Plan for Your Digital Legacy
  https://support.google.com/accounts/answer/3036546?hl=en

• Facebook – Assign a Legacy Contact
  https://www.facebook.com/help/103897939701143/?helpref=uf_share

• Amazon – Digital content is non-transferable and accounts are not inheritable.

How to Plan for Your Digital Assets

A comprehensive digital estate plan ensures your fiduciaries have the authority and tools to manage your online accounts. Here's how to get started:

1. Inventory Your Digital Assets
   List all your online accounts, devices, and subscriptions. Include login credentials where appropriate.

2. Use Online Tools Where Available
   Take advantage of legacy contact and data-sharing settings on platforms like Apple, Google, and Facebook.

3. Update Your Legal Documents
   Work with your estate planning attorney to include specific digital asset provisions in your will, trust, or power of attorney. Appoint a “digital fiduciary” if appropriate.

4. Use a Secure Password Manager
   Store account credentials and backup codes securely using a password manager such as 1Password, Bitwarden, or NordPass. Ensure your digital fiduciary knows how to access this vault, or grant emergency access where the tool allows.

5. Review and Update Regularly
   Technology and accounts change often. Revisit your digital inventory and planning tools annually or as your situation evolves.

Final Thoughts

Your digital life is deeply personal, and often valuable. Including digital assets in your estate plan ensures your legacy is preserved and that your loved ones or fiduciaries can access what they need without unnecessary hurdles.

If you haven't already included digital assets in your estate plan, now is the time to take action. We’re here to help you coordinate with your estate planning attorney and integrate this important component into your overall wealth strategy.