What You Need to Know About Including Digital Assets in Your Estate Plan

Technology has made life easier in many ways—but it has also created new challenges when it comes to estate planning. If your digital assets aren’t included in your estate plan, there’s a real possibility they could be lost forever when you pass away.

Without clear instructions, your loved ones may struggle to even locate your digital accounts, let alone access them. In some cases, accessing them could violate privacy laws or the terms of service set by the platform. That’s why it’s important to understand how digital assets work and how to properly include them in your estate plan.

What Counts as a Digital Asset?

Digital assets include any online accounts, files, or records stored on a computer, smartphone, or in the cloud. Generally, they fall into two categories:

Digital assets with financial value, such as:

Cryptocurrency like Bitcoin or Ethereum
Online payment platforms like PayPal or Venmo
Loyalty programs or reward points
Revenue-generating websites or domain names
Intellectual property such as photos, videos, music, or writing that generate royalties

Digital assets with sentimental value, such as:

Email accounts
Digital photos and videos
Social media accounts
Personal blogs or websites
Cloud storage files

While sentimental assets may not have financial value, they can be incredibly meaningful to loved ones and future generations.

Do You Actually Own Your Digital Assets?

Many people are surprised to learn they don’t actually own some digital assets. In many cases, you only have a license to use them.

For example, cryptocurrency and online payment accounts can usually be transferred in an estate plan. But items like eBooks or music purchased through certain platforms are often licensed for personal use only and may not be transferable.

Whether an asset can be passed on often depends on the platform’s terms of service agreement. These agreements may restrict access to the original user or outline specific procedures for heirs.

This is why proper planning—and clear instructions—are essential.

Laws Governing Digital Assets

For many years, there were no clear laws governing access to digital accounts after someone’s death or incapacity. As a result, families were often locked out of accounts or lost valuable digital information.

To address this issue, most states adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA). This law allows fiduciaries—such as executors or trustees—to access digital assets under certain conditions.

Access generally follows three levels of priority:

Online tools provided by the service provider
Some platforms allow you to designate someone to manage your account if something happens to you. For example, Google offers an inactive account manager, and Facebook allows you to name a legacy contact.
Instructions in your estate plan
If no online tool is used, your Will, trust, or power of attorney can grant authority to access your accounts.
The platform’s terms of service agreement
If neither of the above exists, the company’s policies will determine what happens to the account.

Because of this structure, it’s important to include digital assets in your estate planning documents and leave clear access instructions.

5 Steps to Include Digital Assets in Your Estate Plan

If you want your digital assets handled properly, these five steps can help ensure everything is accounted for.

Create an Inventory of Your Digital Assets

Start by listing all of your digital accounts and assets. Include information about where they are stored and how they can be accessed.

This may include:

account names
usernames
passwords or password manager instructions
cryptocurrency wallet details
storage locations

Store this information securely and make sure your fiduciary knows how to access it.

Include Digital Assets in Your Estate Plan

Your digital assets should be addressed in your Will, revocable living trust, or Durable Power of Attorney, just like any other property.

You can specify:

who should manage and/or inherit certain digital assets
which accounts should be preserved
which accounts should be closed or deleted

However, avoid placing passwords directly in your estate documents since Wills often become public record.

Decide What Access Your Fiduciary Should Have

You may want your executor or trustee to access certain accounts but not others. For example, you might allow them to retrieve photos but not read private messages.

Your estate plan can include instructions that limit or guide how these accounts are handled.

Include Relevant Devices

Digital assets are often easier to access if the physical device is available. Smartphones, computers, tablets, and external drives may contain important data or saved login credentials.

Your estate plan can specify how these devices should be handled and who should receive them.

Use Account Authorization Tools

Many service providers now offer tools that allow you to designate someone who can manage your account after your death. If these tools are available, it’s a good idea to use them and ensure they align with the instructions in your estate plan.

Don’t Overlook Your Digital Legacy

As our lives become increasingly digital, it’s essential that estate plans evolve as well. Digital assets may hold financial value, personal memories, or important information your loved ones will need.

By creating a clear inventory, leaving access instructions, and including digital assets in your estate plan, you can ensure these assets are preserved and handled according to your wishes.

Working with an experienced estate planning attorney can help ensure both your traditional assets and your digital life are properly protected.

If you have any questions—or if you’re ready to begin putting a plan in place to protect your family, your assets (both tangible and digital), and the legacy you want to leave behind—we’re here to help. Click here to schedule a complimentary 15-minute informational call today with our client services coordinator.

As a parent, you may have questions about what you really need in place to protect your kids, your family, your assets, and yourself. From guardians and trusts to wills and health care documents, it can be hard to know where to start. Read on for answers to some of the most common estate planning questions we hear from parents.

Question 1: What is an estate plan?

When people hear the word estate, they often imagine mansions or large investments, but your estate is simply everything you own: your home, savings, personal belongings, and, most importantly, the people you want to protect.

Estate planning is about making thoughtful decisions ahead of time. It allows you to decide who would care for your children, who would make financial or medical decisions if you couldn’t, and how you want your assets managed and distributed.

Whether you’re just starting your career, growing your family, or planning for retirement, an estate plan gives you the opportunity to make those decisions yourself rather than leaving them to default state laws.

Question 2: Do I really need an estate plan if I’m young and healthy?

Even if you’re young and healthy, estate planning matters because life can change in an instant.

With a plan, you name guardians and decision-makers. Without one, many of those decisions may be left to the court or determined by state law. For example, if both parents are unable to care for their children and no guardian has been named, a court will appoint one.

A thoughtful plan can protect your family’s future, provide guidance, and help ensure your children’s inheritance is handled the way you intend.

Online forms and AI tools can be useful for general education, but they can’t provide legal advice or tailor a plan to your needs. An experienced estate planning attorney can help create a plan that’s customized, complies with state law, and is designed to hold up legally when your family needs it most.

Question 3: What documents are included in an estate plan?

A comprehensive estate plan includes several key documents that work together to protect your family.

A Will lets you name guardians for your minor children and direct how your assets are distributed.

A Revocable Living Trust can help avoid probate and provide more control over how assets are managed and distributed.

A Durable Financial Power of Attorney allows someone you trust to manage your financial affairs if you become incapacitated.

A Health Care Proxy allows you to appoint someone to make medical decisions on your behalf if you’re unable to do so.

A HIPAA Authorization gives the people you choose permission to access your medical information when needed.

The right combination of documents depends on your stage of life and your family’s unique needs.

Question 4: Do I need a will, a trust, or both?

This is one of the most common questions parents ask, and the answer depends on your goals.

A will allows you to name guardians for your minor children and direct how your assets are distributed.

A revocable living trust is often used alongside a will. It can help avoid probate, provide privacy, and give you more flexibility in how assets are managed and distributed.

For parents of young children, one of the biggest advantages of a trust is the control it provides. A trust lets you decide when and how your children receive their inheritance rather than having assets become available when they reach legal adulthood. Without that structure, significant assets like a home or investments may become available at a much younger age than most parents feel is wise. A trust also allows you to appoint someone you trust to manage those assets until your children reach the ages or milestones you choose.

For many families, the right solution includes both a will and a trust. It depends on factors like home ownership, the age of your children, and whether you want to avoid probate or set conditions for an inheritance.

Often, the better question isn’t “Do I need a will or a trust?” but “What do I want my plan to accomplish for my family?”

Question 5: How much does estate planning cost?

The cost of estate planning can vary widely depending on your family’s unique situation, goals, and the complexity of the plan.

The most important question isn’t simply what it costs, but what level of planning will best protect your family.

Once an attorney understands your goals and your situation, they can recommend the right approach and explain the fees up front.

Question 6: What happens if I don’t have an estate plan?

There is always a plan. It just may not be the one you would have chosen.

If you don’t create an estate plan, Massachusetts law provides a default plan for many important decisions. Those laws are meant to provide a framework, but they can’t account for your family’s unique needs or your preferences.

Without a plan, a court may need to appoint guardians for your minor children. Assets will be distributed according to state law, and your loved ones may experience unnecessary delays and additional stress.

Creating a plan allows you, not the state, to make those important decisions and provides clear guidance when your family needs it most.

Question 7: How do I choose a guardian for my children?

Choosing a guardian is one of the most important decisions parents make, and it can also be one of the toughest.

Many families struggle to find the one “perfect” person. At our firm, we help parents think through the decision and identify the best fit for their family. We’ll discuss questions you may not have considered, explore different scenarios, and help you make a decision that reflects your values and gives you confidence in your plan.

Thoughtful estate planning also allows you to clearly document your wishes. In some situations, parents have strong feelings about people they do not want serving as guardians. Clearly expressing those preferences in your legal plan can provide important guidance and help reduce uncertainty if difficult decisions ever need to be made.

Remember, naming a guardian isn’t permanent. As your children grow and circumstances change, your plan can be updated to reflect your family’s evolving needs.

Question 8: What happens if I don’t name a guardian?

If both parents are unable to care for their children and no guardian has been named, a court will appoint someone.

The court’s responsibility is to act in the child’s best interests, but without your guidance, the court could appoint someone you would not have chosen.

By naming a guardian, you provide the court with important guidance about who you believe is best suited to raise your children.

Question 9: When should I update my estate plan?

Estate planning isn’t something you do once and forget. Your plan should grow and change as your life does.

It’s a good idea to review your estate plan after major life events, including:

Getting married or divorced
The birth or adoption of a child
When your children become legal adults
Buying or selling a home
Receiving a significant inheritance
Starting or selling a business
A significant change in your financial situation
The death or incapacity of someone named in your plan, such as a guardian, trustee, executor, or agent under your power of attorney
Moving to another state
If your child is diagnosed with special needs, or if their diagnosis, abilities, level of independence, or long-term care needs change over time
Every three to five years, even if nothing major has changed

At our firm, estate planning is an ongoing relationship, not a one-time transaction. As your family grows and life changes, we’ll help you review and update your plan so it continues to reflect your wishes and protect the people you love.

Question 10: Can I create my estate plan using AI or online forms?

AI tools and online forms can be helpful for learning basic concepts or organizing your thoughts, but they can’t give legal advice or evaluate your family’s unique situation.

An estate plan is more than a set of forms. It’s a coordinated legal strategy designed around your specific goals and family dynamics.

If key issues aren’t addressed, certain decisions may default to state law, which can lead to unintended results.

Working with a qualified estate planning attorney who works with young families every day helps ensure your plan is tailored to your family’s needs and wishes. Rather than a one-time transaction, you’ll have a trusted advisor who can help keep your plan current as life changes.

Question 11: How do I get started?

Getting started is often easier than people expect.

The first step is scheduling a complimentary 15-minute call with our Client Services Coordinator.

You don’t need to have all the answers before you reach out. You don’t need to know exactly who you’d choose as guardians or what documents you need. That’s what we’re here to help with.

During that call, we’ll learn a little about your family, answer your initial questions, explain what to expect, and help determine the next best step.

If it makes sense to move forward, we’ll schedule a planning session with one of our attorneys, where we’ll talk through your goals, explain your options in plain language, and help you feel confident about the path forward.

Our goal is to make estate planning approachable, understandable, and personal so you can move forward with confidence, knowing your family is protected.

Question 12: What can I expect during my planning session?

Your planning session is a conversation, not a presentation.

We’ll take time to get to know you, listen to your goals, and answer your questions. We’ll walk you through decisions you may not have thought about, such as guardianship and how and when assets should pass to your children.

By the end of your planning session, you’ll have a clear understanding of your options, what we recommend, why we recommend it, and what the next steps look like.

Our goal isn’t simply to create legal documents. It’s to help you build a thoughtful estate plan that reflects your wishes and protects the people you love.

Question 13: How long will my estate plan take to complete?

Creating your estate plan begins with your planning session, and we ask clients to reserve about 90 minutes so we can truly understand your family and your goals.

During the first part of your planning session, we’ll get to know you, answer your questions, explore your wishes, and discuss what’s most important to you. We’ll explain your options in plain language and recommend the level of planning that’s right for your family’s unique situation.

If you decide to move forward with our firm, the second part of the planning session is spent beginning to design your estate plan. Together, we’ll map out the important decisions and gather the information needed to prepare documents that reflect your wishes and protect your family.

It takes about four weeks from your planning session to signing your estate planning documents. A lot will depend on how quickly you’re able to finalize your decisions. It’s important to remember that nothing is legal until it is signed, so we move you to your signing meeting as quickly as possible.

We’ll be with you every step of the way, keeping you informed so you’ll always know what to expect.

Ready to protect your family? Schedule a complimentary 15-minute call with our Client Services Coordinator to get started. Let’s chat.

The Parents Estate Planning Law Firm, PC

At The Parents Estate Planning Law Firm, we answer your questions at your convenience; we stay in frequent communication; and we meet to discuss changes in life circumstances and in the law to ensure that your assets are protected.