Understanding Digital Assets and Their Importance

A person’s online presence and assets have become just as important as physical and financial assets. From social media accounts and email to cryptocurrency and online businesses, your digital footprint holds significant value. Ensuring your will includes provisions for these assets is crucial to protecting your legacy and ensuring your loved ones have access to them.

What Are Digital Assets?

Digital assets encompass any online accounts, digital files, or electronic records that hold personal, financial, or sentimental value. These assets may include:

• Social media accounts (Facebook, Instagram, LinkedIn, TikTok, Twitter/X, etc.) – Personal and business profiles containing photos, videos, messages, and connections.
• Email accounts – Essential for personal and professional communication, often linked to financial and social accounts.
• Online banking and investment accounts – Includes bank accounts, retirement accounts, brokerage accounts, PayPal, Venmo, and other financial platforms.
• Cryptocurrency wallets (Bitcoin, Ethereum, NFTs, etc.) – Digital currencies stored in exchanges or private wallets, which require secure access keys.
• Online businesses and e-commerce stores – Websites, Shopify stores, Amazon seller accounts, affiliate marketing accounts, and other digital business assets.
• Cloud storage accounts (Google Drive, Dropbox, iCloud, OneDrive, etc.) – Contain important documents, photos, and videos.

Without a clear plan in place, these assets can become inaccessible, lost, or misused after your passing. Proper estate planning ensures they are managed according to your wishes, preventing financial loss and protecting your digital legacy.

Steps to Incorporate Digital Assets into Your Will

1. Create a Digital Inventory

The first step is identifying all your digital assets and compiling them into a secure document. This inventory should include:

• Account names and URLs
• Username and password storage solutions (use a password manager, not the will itself)
• Contact information for necessary parties (e.g., customer support for financial accounts)

2. Assign a Digital Executor

A digital executor is responsible for handling your digital assets according to your wishes. This individual should be someone you trust and who is technologically savvy enough to manage your accounts properly.

Responsibilities of a digital executor may include:

• Closing social media accounts
• Transferring ownership of digital businesses
• Distributing cryptocurrency
• Preserving or deleting digital content

3. Define Your Wishes for Each Asset

Different platforms have different policies regarding account management after death. Clearly outline what should happen to each asset:

• Social media: Decide whether accounts should be memorialized or deleted.
• Email accounts: Specify whether they should be accessed or closed.
• Cryptocurrency: Ensure keys and access methods are stored securely for beneficiaries.
• Online businesses: Assign ownership or set up a transfer process.
• Digital content: Determine whether photos, blogs, or videos should be shared, deleted, or archived.

4. Work with an Attorney to Formalize Your Digital Will

A standard will may not be sufficient to cover digital assets. An experienced estate planning attorney can help draft legally sound documents that:

• Include specific clauses for digital asset management
• Comply with laws like the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA)
• Prevent unauthorized access while ensuring intended beneficiaries receive their assets

Why You Need an Attorney for Digital Estate Planning

1. Legal Recognition of Digital Executors

Many states have specific laws regarding digital asset management. An attorney ensures that your executor has the legal authority to manage your accounts without violating privacy laws or terms of service agreements.

2. Preventing Family Disputes

Ambiguities in a will can lead to conflicts among beneficiaries. By clearly documenting your wishes with legal backing, you reduce the risk of disputes and unintended consequences.

3. Secure Storage and Execution

While it may be tempting to write down account credentials in your will, this is not recommended for security reasons. An attorney can guide you on secure ways to store and distribute digital access information without compromising security.

Keeping Your Digital Estate Plan Updated

Your digital footprint is constantly evolving as you create new accounts, update security settings, and acquire digital assets. Because of this, it’s important to regularly review and update your digital estate plan to ensure that your online presence and assets are properly managed according to your wishes.

Why Regular Updates Matter

Many online platforms frequently change their policies regarding account access after death, and cybersecurity risks evolve, requiring adjustments to your security settings. Additionally, failing to keep your digital estate plan current can result in:

• Lost access to newly acquired digital assets.
• Outdated or incorrect instructions for your digital executor.
• Unused subscriptions continuing to incur charges.
• Accounts remaining active that should be closed or transferred.

Key Areas to Review & Update

Make it a habit to update your digital estate plan whenever there are significant changes in your digital life, including:

• New accounts or assets – Any newly opened banking, investment, social media, or cryptocurrency accounts should be added to your digital estate plan, along with necessary login credentials.
• Changes in passwords or security measures – If you update your passwords, enable two-factor authentication (2FA), or use a password manager, make sure your executor has access to necessary details in a secure way.
• Updated preferences for account management – Your wishes for account deletion, memorialization, or asset transfer may change over time, especially if you gain new business interests or intellectual property.
• Modifications in beneficiary designations – If your digital assets hold financial value, such as domain names, blogs, or monetized social media channels, ensure that beneficiaries are correctly designated.

How Often Should You Update Your Digital Estate Plan?

Consider reviewing and updating your plan:

• Annually as part of your general estate planning review.
• After major life events (marriage, divorce, birth of a child, death of a beneficiary, or changes in financial circumstances).
• When you acquire new significant digital assets (such as cryptocurrency, online businesses, or intellectual property).
• Whenever a major platform changes its policies on account access and digital inheritance.

By keeping your digital estate plan up to date, you ensure that your online assets are handled smoothly and according to your wishes, preventing complications for your loved ones.

Contact Blackford & Flohr for Expert Estate Planning

Navigating digital estate planning can be complex, but the attorneys at Blackford & Flohr can help ensure your digital legacy is properly addressed in your will. Our legal team specializes in estate planning and digital asset protection, offering tailored solutions for your unique needs. Contact us to speak with a Maryland lawyer today.