Digital Assets in Estate Planning: The Most Overlooked but Crucial Step
Walk-in Wills
Your Digital Life Is Part of Your Legacy
When Linda passed away, her daughter couldn’t access a single photo or letter stored in her mother’s iCloud account. Even though Linda had done almost everything right—signed a will, created a trust, and accounted for her financial assets—she overlooked her digital life.
In today’s world, our most personal memories, essential financial accounts, and even valuable investments are digital. And yet, digital assets are often missing from estate plans, causing unnecessary frustration, expense, and loss.
What Are Digital Assets and Why Are They Important in Estate Planning?
When people think of estate planning, they typically focus on physical property: homes, vehicles, savings accounts. But your digital assets are just as important—and sometimes even more valuable.
Common digital assets include:
- Email accounts
- Cloud photo storage (iCloud, Google Photos)
- Online banking and investment accounts
- Cryptocurrency wallets
- Social media profiles (Facebook, Instagram, LinkedIn)
- Loyalty programs and airline miles
- Password-protected devices
According to recent studies, only 1 in 4 Americans has included their digital assets in an estate plan. That oversight can leave families locked out of emotional memories, financial resources, and personal data.
Why Digital Assets Should Be Part of Your Estate Plan Now
Imagine your family needing to:
- Access your online banking to pay for final expenses
- Recover cherished family photos from cloud storage
- Convert unused cryptocurrency or points into usable funds
- Close or memorialize your social media profiles
Without proper planning, these scenarios become legal and emotional hurdles, often requiring court orders, long wait times, or irreversible data loss.
Your passwords could be the key to your family’s peace of mind—or the roadblock that leaves them in the dark.
Real Story: The Lost Crypto Wallet
Rick’s brother had told him he was “dabbling” in crypto. After his brother passed away, Rick found out that those few coins were actually $75,000 worth of Ethereum. Unfortunately, no one had access to the wallet. No password, no backup, no way in. The funds were lost forever.
That day, Rick updated his estate documents and added instructions for his own digital assets. “I’m not letting my family go through that,” he said.
Expert Insights on Digital Estate Planning
Estate planning professionals agree: your digital life deserves the same attention as your physical assets.
“Digital assets are often forgotten until it’s too late—families end up locked out of crucial information.”
“Treat your digital life like your real one: with organization and intention.”
That day, Rick updated his estate documents and added instructions for his own digital assets. “I’m not letting my family go through that,” he said.
4 Simple Steps to Include Digital Assets in Your Estate Plan
1. Make a Digital Inventory
Create a list of your:
- Online accounts (banking, email, subscriptions)
- Social media and cloud storage platforms
- Cryptocurrency holdings and wallets
- Important files stored on your devices
Include usernames and account locations—but never write down passwords directly in your will.
2. Use a Password Manager
Services like 1Password or LastPass allow you to:
- Store all your logins securely
- Share emergency access with a trusted person
- Add a layer of protection to your digital legacy
3. Designate a Digital Executor
This person is responsible for managing your digital accounts after you pass away. Some states, including Arizona and New Mexico, now legally recognize digital executors.
Include them in your will or trust documents and clearly outline what they have access to and how they should manage your online assets.
4. Update Your Estate Plan
Make sure your legal documents:
- Mention digital assets specifically
- Grant permission for someone to access them
- Include the name of your digital executor
Review your plan every few years or after major life changes to ensure it stays current.
Addressing Common Concerns
“I’m not sure what counts as a digital asset.”
Start simple: Email, online banking, cloud photo storage, and social media. Once you begin the list, other accounts will come to mind.
“I’m not comfortable sharing passwords.”
That’s smart. Use a password manager with emergency access settings—your data stays secure and only becomes accessible when needed.
Estate Planning Is Evolving—Don’t Get Left Behind
Just like we once moved from paper checks to online banking, estate planning is shifting to include digital assets. And with more of our lives stored in the cloud, planning for your digital legacy is no longer optional—it’s essential.
By thinking ahead, you save your family time, stress, and potential heartache. You also ensure that your life story—photos, emails, memories—is not lost.
Real-Life Example: How Digital Planning Makes a Difference
A couple from Tucson took 30 minutes to:
- Create a shared password manager
- List their key accounts
- Name their son as digital executor
When the husband passed away unexpectedly, the wife had everything she needed—no missed accounts, no lost memories, no phone calls to tech support.
That’s what real estate planning peace of mind looks like.
Simon Kubiak
CEO of Walk-In Wills
Take the First Step: Start Your Digital Estate Plan Today
It only takes a few minutes to begin:
- Make a list of your digital accounts
- Set up a secure password manager
- Talk to your estate planning attorney about updating your documents
Need help? At Walk-in Wills, we make it easy to include digital assets in your estate plan.
📞 Call us today at 480-470-7000 to schedule a free consultation and protect your digital life for the people you love.
Call Today to Schedule a Free Consultation
Walk-In Wills is poised and ready to help you safeguard the assets you’ve worked so hard for all your life. Schedule your free hour-long consultation today by calling (505) 903-7000. You can also find out more about our services by visiting us online. Our attorneys offer more than just help with estate planning. They also provide peace of mind to you and your family.
The free consultation is an introductory planning meeting and does not include review of documents prepared outside the firm or ongoing legal advice.