Don’t Let Your Bitcoin Die With You: How to Include Digital Assets in Your Estate Plan

Imagine having a significant amount of wealth, but instead of passing it on to your family, it disappears into the digital abyss, never to be seen again. Sounds dramatic, right? But this is a very real risk if you haven’t included your digital assets—like Bitcoin, online investment accounts, or even your Instagram page—in your estate plan.

Millennials and Gen Xers are building substantial digital footprints, and it’s not just about social media. From cryptocurrency portfolios and online businesses to valuable domain names and digital art, digital assets are quickly becoming a significant part of financial portfolios. Yet, when it comes to estate planning, many people still focus only on traditional assets like property, investments, and bank accounts. The result? Potentially thousands—or even millions—of dollars in digital wealth could be lost forever if your heirs can’t access these accounts.

So, how do you make sure your digital assets are protected? In this article, we’ll break down why digital assets need special attention in your estate plan, the risks of ignoring them, and how to ensure that your Bitcoin, online accounts, and even your Netflix account are all accounted for. After all, you don’t want your digital legacy to die with you. Let’s dive in!

Understanding Digital Assets: What Are They and Why Do They Matter?

Digital assets aren’t just the latest buzzword in tech; they’re a rapidly growing part of today’s financial portfolios and personal legacies. But what exactly are they, and why are they so important to include in your estate plan? Let’s start with a definition and then explore how these assets are reshaping the way Millennials and Gen Xers think about their financial and personal legacies.

What Are Digital Assets?

In the simplest terms, digital assets are anything of value that exists electronically, whether it’s stored on a computer, accessed online, or protected by cryptographic keys. But digital assets go beyond just cryptocurrency and NFTs (although we’ll certainly cover those). They encompass a wide range of intangible items that have monetary, social, or sentimental value. Here’s a breakdown of what qualifies as a digital asset:

• Cryptocurrencies: Digital currencies like Bitcoin, Ethereum, and other altcoins that require private keys to access and transfer.

• Non-Fungible Tokens (NFTs): Digital collectibles, art, music, and other unique assets bought and sold on blockchain platforms.

• Online Investment and Payment Accounts: Accounts like PayPal, Venmo, Robinhood, or any brokerage accounts managed entirely online.

• E-commerce and Online Businesses: Websites, Amazon or Etsy stores, domain names, and e-commerce businesses that generate income.

• Digital Media: eBooks, photographs, music libraries, and even video game collections.

• Social Media Accounts: Profiles on platforms like Instagram, Facebook, LinkedIn, or YouTube, which can have both personal and business value.

• Email Accounts and Cloud Storage: Personal and business emails, Google Drive, Dropbox, or iCloud, often containing critical documents and information.

• Memberships and Subscriptions: Digital subscriptions to services like Netflix, Spotify, or even online educational platforms.

Each of these assets can have significant value—either monetary or sentimental. But unlike physical assets, digital assets often don’t have clear-cut ownership rules or simple processes for transfer when you pass away. And that’s where the problems begin.

The Rise of Digital Wealth

For Millennials and Gen Xers, digital assets aren’t just an add-on; they’re a core part of wealth building and social identity. A recent study by the deVere Group found that more than 30% of Millennials and Gen Xers either own or plan to own cryptocurrency. Meanwhile, digital businesses—whether it’s an online store, a YouTube channel, or an eBook portfolio—are increasingly becoming primary sources of income.

With more wealth being stored in these new forms, it’s no wonder digital assets are starting to rival traditional assets in value. However, despite this growing digital footprint, a vast majority of people are not addressing these assets in their estate plans. According to a survey by EstateExec, only 42% of people have included any type of digital asset in their wills. This oversight could leave families locked out of valuable resources, facing legal battles, or even completely unaware of what was left behind.

Why It’s Critical to Plan for Digital Assets

Unlike traditional assets, digital assets come with unique challenges that make them difficult to access or transfer without explicit planning:

• Security and Accessibility
  Many digital assets, especially cryptocurrencies, are protected by complex passwords and private keys. Lose access to these keys, and you lose the assets—forever. There’s no probate court that can break open a crypto wallet. This makes proper documentation of how to access these assets a critical part of your estate plan.

• Legal Restrictions
  Most online platforms have strict terms of service agreements that don’t automatically transfer ownership of an account when the owner dies. This can leave your heirs stuck in a legal quagmire, unable to access or control these accounts. For example, platforms like Facebook and LinkedIn have specific policies for deceased users, but getting access requires jumping through multiple hoops if there’s no clear plan in place.

• Digital Identity and Privacy
  Beyond monetary value, digital assets often include a significant portion of your digital identity—your social media presence, personal photos, and even intellectual property. If not properly managed, these could be misused, lost, or even stolen. Without an estate plan for your digital assets, you risk leaving your family with a fragmented online legacy and the burden of managing it.

• Lack of Legal Precedent
  Because digital assets are a relatively new phenomenon, laws and regulations are still evolving. This means traditional estate planning documents like wills and trusts often aren’t equipped to handle the complexities of digital asset transfer. Without specific language and detailed instructions, these assets could fall into a legal gray area, leaving your heirs to navigate a maze of uncertainties.

What Happens If You Ignore Digital Assets in Your Estate Plan?

Let’s consider a real-world example: In 2013, a British IT worker named James Howells accidentally threw away a hard drive containing 7,500 Bitcoins—worth about $130 million at today’s value. He’s been trying to retrieve it ever since, but without the private keys stored on that hard drive, the Bitcoins are irretrievable. Now imagine if Howells hadn’t thrown it away but had simply passed away without sharing the private keys with his heirs. The result would be the same: complete loss of those digital assets.

While most of us don’t have $130 million in Bitcoin lying around, the stakes can still be high for other digital assets, such as a profitable online business or a valuable NFT collection. Failing to include digital assets in your estate plan means that these investments could be lost forever, along with the time, effort, and value that went into building them.

Including digital assets in your estate plan isn’t just about preserving wealth—it’s about ensuring your legacy, protecting your family, and avoiding the heartbreak of losing assets that are locked behind digital walls.

Risks of Ignoring Digital Assets in Your Estate Plan

When most people think of estate planning, they picture passing on family homes, investments, and heirlooms—not passwords, cryptocurrency keys, or cloud storage accounts. But ignoring digital assets can create serious problems for your heirs. Without a clear plan in place, these valuable assets can become inaccessible or even lost forever. Let’s take a closer look at some of the biggest risks and why failing to include your digital wealth in your estate plan is a mistake you can’t afford to make.

1. Loss of Wealth

Digital assets are notoriously easy to lose if they aren’t properly documented. This is particularly true for cryptocurrencies, where access depends entirely on having the correct private keys or seed phrases. Unlike a traditional bank account, which can be retrieved through probate or court orders, there’s no central authority that can help recover lost digital assets. Once the private key is lost, it’s gone for good.

Consider this: According to a study by Chainalysis, approximately 20% of the total Bitcoin supply is permanently inaccessible due to lost keys, valued at around $140 billion. And it’s not just cryptocurrency. Your family could face similar issues with other digital investments—like online brokerage accounts or valuable domain names—if they don’t know how to access them.

Real-Life Example: There’s a widely known case of Gerald Cotten, the founder of a cryptocurrency exchange, who died unexpectedly in 2018. He was the only person who had the passwords to over $190 million worth of customer assets. Because there were no backup access points, those assets were effectively locked away forever.

How to Avoid It: Make sure to document where your digital assets are stored, how they can be accessed, and who should receive them. Use a password manager or encrypted digital vault to securely store this information, and specify in your estate plan who will be responsible for managing these assets.

2. Legal and Compliance Issues

Digital platforms often have stringent terms of service that make it difficult—or sometimes impossible—for heirs to access an account. Many platforms don’t recognize standard estate planning documents, such as wills, because they consider user accounts to be private property governed by their own terms. This is particularly true for social media accounts and email platforms.

For instance, Google’s Inactive Account Manager allows you to specify who can access your account when it becomes inactive, but if you haven’t set this up, your heirs may have no legal right to access your emails, photos, or documents. The same goes for social media platforms like Facebook and Instagram, which have specific policies for memorializing or closing accounts, but not necessarily for transferring control.

Real-Life Example: In 2012, after a 21-year-old man passed away unexpectedly, his parents were unable to access his Facebook account to retrieve important memories and photos. They took Facebook to court, but due to the platform’s strict privacy policies, they were denied access. Without explicit instructions and permissions, your heirs could face similar legal roadblocks.

How to Avoid It: Include a digital executor in your estate plan—someone specifically designated to handle digital assets. Make sure your estate planning documents (e.g., wills, trusts) include the necessary language granting this executor legal permission to manage and access your digital assets. Some states even have specific laws, like the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which can help, but only if your estate plan aligns with these regulations.

3. Unintentional Digital Identity Theft

In the age of social media, your digital presence is part of your legacy. Unattended social media accounts, abandoned email addresses, and unprotected cloud storage accounts can become prime targets for hackers and identity thieves. If these accounts aren’t properly managed after you’re gone, they could be hacked and used for malicious purposes, damaging your reputation and causing emotional distress for your family.

Identity theft involving deceased individuals, sometimes referred to as “ghosting,” is more common than most people realize. Thieves can use social media accounts, email addresses, or other online profiles to commit fraud, steal your digital assets, or impersonate you to access financial information.

Real-Life Example: After a social media influencer passed away, hackers took control of her Instagram account and began posting spam, tarnishing her legacy and causing distress for her followers and family. Without a clear plan for how to handle social media accounts, your family could face a similar problem.

How to Avoid It: Document your digital identity as part of your estate plan. Make a list of all your social media accounts, email addresses, and other online profiles, and specify how you want each to be managed—whether it’s memorialization, closure, or transferring ownership to a trusted person. Designate someone who is responsible for handling these accounts and provide them with the necessary access information.

4. Fragmented or Lost Digital Legacies

Your digital legacy isn’t just about wealth—it’s also about personal memories and sentimental assets. From family photos stored in Google Drive to personal blog posts, digital diaries, and even digital art, these assets can carry tremendous emotional value. But if you don’t plan for their transfer, they could be fragmented or lost entirely, leaving your family with only a partial record of your digital life.

Millennials and Gen Xers often store much of their personal history in the cloud. Without clear instructions on who should have access, family members may be unable to retrieve these precious memories. This can lead to confusion, lost heirlooms, and the unintentional destruction of your digital footprint.

Real-Life Example: A woman who passed away had hundreds of family photos stored on her Flickr account, but none of her relatives knew the password. Because she hadn’t set up a digital estate plan, her family couldn’t recover the images, and Flickr eventually closed the account due to inactivity, erasing years of cherished memories.

How to Avoid It: Create a comprehensive inventory of your sentimental digital assets and leave instructions for how they should be handled. Consider setting up legacy contacts on platforms that offer this feature (e.g., Facebook, Google), and make sure the person you designate knows your wishes for these personal items.

5. Potential for Family Disputes

Finally, failing to plan for digital assets can create confusion and conflict among your heirs. Imagine siblings fighting over access to a valuable NFT collection, or a spouse being left in the dark about an online investment account. These disputes can cause rifts in families and lead to costly legal battles.

Without clear instructions on how digital assets should be handled and who should inherit them, your heirs may end up in contentious situations. This is especially true if the assets are of significant value or carry sentimental importance.

Real-Life Example: After a tech entrepreneur passed away, his children from his first marriage and his second wife entered into a bitter legal dispute over his online business accounts, which were generating significant monthly income. Without clear beneficiary designations and access instructions, the family had no choice but to fight it out in court.

How to Avoid It: Specify clear beneficiaries for each digital asset, just as you would for traditional assets. Include detailed instructions on how to access these assets and make sure your heirs understand your wishes. Working with a financial planner can help prevent miscommunications and ensure that your digital assets are distributed according to your plan.

How to Include Digital Assets in Your Estate Plan: A Step-by-Step Guide

Now that you understand the risks of neglecting digital assets in your estate plan, let’s explore the steps you can take to ensure that your Bitcoin, NFTs, social media accounts, and online business profiles are all covered. Planning for digital assets requires more than just adding a few lines to your will—it involves organizing a detailed inventory, securing access information, and providing clear instructions on how you want these assets managed and distributed. Here’s a step-by-step guide to get you started.

Step 1: Create a Comprehensive Inventory of Your Digital Assets

Just like with physical assets, the first step in including digital assets in your estate plan is knowing what you have. This involves creating a detailed inventory of all your digital property, along with information about how to access it. Here’s what you should include:

• Cryptocurrencies and NFTs: List all your holdings, including the type of cryptocurrency (e.g., Bitcoin, Ethereum), wallet information, and the location of private keys. For NFTs, document where they’re stored (e.g., OpenSea, MetaMask) and the access credentials.

• Online Financial Accounts: Include details for all digital financial accounts, such as PayPal, Venmo, Robinhood, and online brokerage accounts. Be specific about usernames, account numbers, and linked email addresses.

• E-commerce Stores and Online Businesses: Note all websites, domain names, and online stores (e.g., Amazon, Shopify, Etsy) along with login information and instructions for managing these businesses.

• Social Media and Email Accounts: List each account (Facebook, Instagram, LinkedIn, Gmail, etc.), with login details and any specific wishes for how you want these accounts to be managed—memorialized, closed, or transferred to a trusted contact.

• Digital Media and Subscriptions: Don’t forget digital media like iTunes music collections, Kindle eBooks, and subscriptions to services like Netflix or Audible.

• Cloud Storage and Digital Vaults: Include Google Drive, Dropbox, and any password managers (e.g., LastPass) where you store sensitive information.

Pro Tip: Store this inventory in a secure location, such as an encrypted digital vault or a physical document stored in a safe deposit box. Share the location and access instructions with a trusted individual or your designated digital executor.

Step 2: Organize and Secure Your Access Information

A detailed inventory is useless if your heirs can’t access your accounts. This is especially true for assets like cryptocurrency, where access depends entirely on having the right private keys or recovery phrases. To prevent the risk of lost access, make sure your access information is stored securely and shared only with trusted individuals.

• Use a Password Manager: Consider using a password manager like LastPass, Dashlane, or 1Password to securely store login credentials, 2FA settings, and private keys. Password managers allow you to share access with a trusted contact without compromising security.

• Create a Digital Vault: For assets like private keys, recovery codes, or sensitive business documents, a digital vault—an encrypted, cloud-based storage system—can provide both security and accessibility. Make sure your digital executor knows how to access it.

• Document Recovery Instructions: For assets that require special knowledge (e.g., using cold wallets for cryptocurrency or accessing NFTs through MetaMask), include step-by-step instructions in your estate plan. This will help prevent accidental lockouts or mishandling of complex assets.

Step 3: Designate a Digital Executor

Handling digital assets can be a complex and technical task. That’s why it’s crucial to name a digital executor—someone who has the technical knowledge to manage your digital estate. This person could be a family member, a trusted friend, or a professional with expertise in digital asset management.

Who is a Digital Executor?

A digital executor is responsible for managing your digital assets according to your wishes. They are separate from your traditional executor, who handles your physical assets. While not all states legally recognize the role of a digital executor, it’s still a good idea to include this designation in your estate plan.

• Choosing the Right Person: The ideal digital executor should be someone tech-savvy and trustworthy. This person needs to understand how to access and transfer complex assets like cryptocurrencies, as well as handle sensitive information securely.

• Document Their Role: Clearly outline the digital executor’s responsibilities in your estate plan. Specify which accounts they should manage, how to distribute assets, and any special considerations for handling sensitive data.

Step 4: Include Specific Instructions in Your Will and Trust

Unlike traditional assets, digital assets can’t simply be handed over to heirs without additional legal documentation. Wills and trusts are critical for ensuring that your digital assets are transferred according to your wishes. Here’s how to do it:

• Detail Digital Asset Distribution in Your Will: Include a section that explicitly lists your digital assets and who should receive them. However, do NOT include sensitive information like passwords or private keys in the will, as it becomes a public document during probate.

• Create a Digital Asset Trust: For more complex assets, like cryptocurrency or online businesses, consider creating a digital asset trust. This ensures that your digital assets are managed outside of probate, providing privacy and control. The trust can hold private keys, passwords, and other sensitive information without exposing them to the public.

• Use the Right Legal Language: Make sure your estate planning documents include language that grants your digital executor and heirs the authority to access, control, and transfer your digital assets. Reference the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) if your state recognizes it.

Step 5: Regularly Review and Update Your Digital Estate Plan

Digital assets change frequently—whether it’s a new investment in cryptocurrency, a new online business, or even changes in the policies of digital platforms. Failing to keep your estate plan updated can render it ineffective, leaving your heirs without access to newly acquired assets.

• Update After Major Life Events: Review your digital estate plan anytime you experience a major life event (e.g., marriage, divorce, birth of a child), or acquire a significant new digital asset.

• Set a Regular Review Schedule: Make it a habit to update your digital estate plan annually. This ensures that your plan remains accurate and that your heirs have up-to-date instructions for accessing and managing your digital assets.

Special Considerations for Cryptocurrencies

Cryptocurrencies have become a popular investment for Millennials and Gen Xers, and for good reason—they offer the potential for substantial growth, privacy, and control over your wealth. But with this potential comes complexity. Unlike traditional assets, cryptocurrencies are stored in digital wallets and accessed using private keys. If these keys are lost, your digital fortune is essentially gone forever, and no legal document or court order can bring it back.

Because of this, planning for cryptocurrencies in your estate requires extra care. Let’s explore the unique challenges and the specific steps you need to take to ensure your Bitcoin, Ethereum, and other crypto assets are protected and accessible to your heirs.

1. Understanding Cryptocurrency Keys: The Gatekeeper of Your Wealth

Cryptocurrencies are fundamentally different from traditional financial assets. They exist entirely in the digital realm and are accessed through private keys—a long string of alphanumeric characters that acts as the password to your wallet. Whoever has the private key has full control over the cryptocurrency. Lose the key, and even your heirs won’t be able to access the funds.

The Role of Public and Private Keys

• Public Key: Similar to an account number, it allows others to send cryptocurrency to your wallet. It’s safe to share and doesn’t need to be protected.

• Private Key: This is your master password. It should never be shared openly. The private key is required to access and transfer your cryptocurrency holdings. If this key is lost, the funds in the wallet are permanently inaccessible.

Seed Phrases

• Many cryptocurrency wallets use seed phrases (typically a series of 12 or 24 random words) as a way to back up and recover private keys. These phrases must be stored securely and handled with the same care as private keys.

Why This Matters for Estate Planning

• Without proper documentation of these keys or seed phrases, your cryptocurrency investments are at risk of being lost forever. Simply mentioning the existence of crypto assets in your will won’t be enough. You need to include specific instructions on how to access these digital wallets.

2. Securely Documenting Your Private Keys and Seed Phrases

Documenting your private keys is critical, but it’s also risky. Writing down your private keys or seed phrases on paper or storing them in an unprotected digital file exposes you to the possibility of theft or loss. Here are some secure ways to document your keys for estate planning:

Cold Storage Options

• Hardware Wallets: Devices like Ledger and Trezor are designed to store private keys offline. They offer strong security but require detailed instructions on how to access them.

• Paper Wallets: A printed document containing your private keys and QR codes. While effective for long-term storage, it’s vulnerable to physical loss or damage (e.g., fire or water).

Digital Vaults and Password Managers

• Store your private keys or seed phrases in a digital vault or password manager that offers high-level encryption. Use a strong master password and enable multi-factor authentication (MFA) to prevent unauthorized access.

Create a Cryptocurrency Access Plan

• Include detailed instructions in a separate document or digital vault, explaining:
• How to locate your cryptocurrency wallet.

• How to use the private keys or seed phrases to access the wallet.

• How to transfer the cryptocurrency to an exchange for liquidation, if desired.

Important: Do not include private keys or seed phrases directly in your will or trust documents, as these documents become public during probate. Instead, reference the secure location where the keys are stored.

3. Choosing a Tech-Savvy Digital Executor

When it comes to cryptocurrencies, not just anyone can handle the complexities of accessing and transferring these assets. Your digital executor must be someone who understands how to navigate the technical aspects of crypto wallets, exchanges, and security protocols.

What to Look for in a Digital Executor:

• Technical Competency: Familiarity with cryptocurrency wallets, private keys, and online exchanges.

• Trustworthiness: This person will have access to your entire digital fortune, so choose someone you trust implicitly.

• Clear Instructions: Provide your digital executor with a step-by-step guide to handling your crypto assets, from accessing wallets to executing transfers.

Tip: If you don’t have a suitable person in mind, consider naming a professional digital fiduciary or working with a digital estate planning firm that specializes in cryptocurrency management.

4. Using a Cryptocurrency Custodian for Estate Planning

Given the complexity and high stakes involved with securing cryptocurrency, you may want to consider using a cryptocurrency custodian—a specialized firm that securely stores digital assets and can provide estate planning services. These custodians act as a third party, managing and securing your assets according to your instructions.

Benefits of a Custodian:

• Secure Storage: Custodians store cryptocurrencies using advanced security measures, such as multi-signature wallets and cold storage solutions.

• Ease of Transfer: Custodians can facilitate the transfer of digital assets to your heirs, reducing the risk of lost access or errors.

• Compliance: Professional custodians ensure that digital assets are handled in a way that complies with current regulations, protecting your heirs from potential legal issues.

Popular Options:

• Coinbase Custody: Provides secure storage solutions for individuals and institutional investors.

• BitGo Trust: Offers multi-signature wallets and customized estate planning options.

• Anchorage Digital: A regulated digital asset platform that offers secure storage and estate planning services.

5. Using a Digital Asset Trust to Manage Cryptocurrency

For high-value cryptocurrency holdings, consider setting up a digital asset trust. This specialized type of trust is designed to hold and manage digital assets like cryptocurrencies, providing both security and a clear pathway for transferring ownership to your heirs.

How a Digital Asset Trust Works:

• The trust legally owns the cryptocurrency and controls the private keys.

• You can set specific conditions for how the assets should be managed and distributed—e.g., the trustee can only sell Bitcoin when it reaches a certain price, or distribute it equally among your children at a certain age.

• This approach keeps your digital assets out of probate, ensuring privacy and continuity.

6. Planning for Tax Implications of Cryptocurrency Transfers

Cryptocurrencies are subject to unique tax considerations, and mishandling these assets in an estate plan could leave your heirs facing a substantial tax burden.

Capital Gains Tax: When your heirs inherit cryptocurrency, they receive a step-up in basis, just like with other assets. This means the value of the crypto at the time of your death becomes the new cost basis, reducing the capital gains tax owed if they decide to sell. However, if not properly documented, calculating this step-up could become difficult.

Income Tax on Transfers: If the crypto is transferred to heirs outside of a trust or a structured estate plan, the IRS may treat it as a taxable event, triggering unexpected tax liabilities.

How to Avoid Tax Pitfalls: Work with a tax advisor to document the value of your cryptocurrency assets and structure the transfer in a way that minimizes taxes. Including these assets in a trust can simplify the tax situation and provide clear guidance for your heirs.

Managing Social Media Accounts and Online Identities

For Millennials and Gen Xers, social media isn’t just a fun distraction—it’s a reflection of their personal and professional lives. From Instagram and Facebook to LinkedIn and personal blogs, your digital identity is part of your legacy. But what happens to all of that when you’re gone? Failing to include your social media accounts and online profiles in your estate plan can lead to confusion, loss of sentimental value, and even misuse of your digital identity. This section will guide you through the steps needed to protect your online presence and ensure that your digital legacy is handled according to your wishes.

1. Understanding the Value of Your Digital Identity

Your social media and online accounts might not seem like assets in the traditional sense, but they hold significant value, both financially and sentimentally. Consider what’s at stake:

• Sentimental Value: Your family photos, blog posts, and social media profiles tell a story that your loved ones might want to preserve. If these accounts are left unprotected or closed down unexpectedly, your digital memories could disappear forever.

• Financial Value: If you’re a social media influencer, blogger, or content creator, your online presence could generate significant income. Even after you’re gone, your heirs might be able to monetize your digital content or continue your brand’s legacy.

• Professional Value: LinkedIn profiles and other professional accounts could be crucial for preserving your professional reputation or for transitioning business contacts and networks to family or colleagues.

Ignoring these assets in your estate plan can mean a fragmented digital legacy or even the complete loss of valuable online property.

2. What Happens to Social Media Accounts After You’re Gone?

Each social media platform has its own policies for handling the accounts of deceased users. Without clear instructions, your family may struggle to manage or even access your accounts. Here’s a quick overview of the rules for some of the major platforms:

• Facebook: Allows users to set up a “Legacy Contact” who can manage your account after you pass away. Options include memorializing the account, which preserves the profile but limits interactivity, or deleting it altogether.

• Instagram: Similar to Facebook, Instagram offers the option to memorialize or remove the account upon proof of death. Without a designated contact, family members will have a hard time making any changes.

• LinkedIn: LinkedIn allows your family or legal representatives to request the removal of your account, but only with proper documentation. There’s no option for memorialization or transfer.

• Google/Gmail: Google’s Inactive Account Manager lets you specify what should happen if your account goes inactive. You can set up trusted contacts who will receive access to certain data, or choose to have your account deleted.

Without pre-planning, your family may need to navigate these complex policies while grieving, which could result in accounts being closed, inaccessible, or even misused.

3. How to Include Social Media Accounts in Your Estate Plan

Follow these steps to ensure that your social media and online accounts are protected and managed according to your wishes:

Create an Inventory of Your Social Media and Online Accounts

• List all your social media profiles, websites, blogs, and email addresses.

• Include login information (usernames and associated email addresses) but avoid writing down passwords directly in your estate plan.

• Specify what you want to happen to each account—should it be memorialized, deleted, or transferred to someone else?

Designate a Digital Executor or Legacy Contact

• Platforms like Facebook and Google allow you to name a Legacy Contact or trusted person who can manage your account if it becomes inactive. Set these up now to ensure that someone you trust will be able to follow your wishes.

• In your estate planning documents, designate a digital executor—a person responsible for handling your online presence. Clearly outline their responsibilities, such as:

• Managing social media accounts.

• Downloading photos or other digital content.

• Shutting down inactive accounts.

Provide Written Instructions for Each Account

• Write down your wishes for each account:

• For personal accounts, specify if they should be deleted or memorialized.

• For business or professional accounts, outline how you want your heirs to manage them.

• For active online businesses or monetized accounts, include instructions on transferring ownership, passwords, and any revenue-generating strategies.

Use a Digital Vault or Password Manager

• Store the details of your social media accounts in a secure, encrypted location such as a digital vault or a password manager.

• Provide your digital executor with access instructions, but ensure that this information is kept secure until needed.

4. Managing Online Businesses and Digital Brands

For digital entrepreneurs, personal brands, and influencers, online businesses are often among the most valuable assets. These could include e-commerce stores, YouTube channels, personal websites, or blogs that generate ad revenue. If you don’t plan for these assets, they could be left in limbo, losing followers, traffic, and potential revenue.

Include Online Businesses in Your Will or Trust

• Specifically mention these digital assets in your estate plan. Outline who should take control of the business and how it should be managed.

• Consider transferring these assets to a digital trust, which can provide ongoing management and ensure that revenue continues to be directed to your chosen beneficiaries.

Set Up Transition Plans for Followers and Subscribers

• Create a plan for notifying your followers or subscribers about the transition.

• Provide instructions for family members or business partners on how to maintain, transfer, or close the business, including passwords, hosting services, and payment platforms.

5. Protecting Your Digital Legacy from Identity Theft and Misuse

Unattended social media accounts can become easy targets for hackers and identity thieves. Protecting your digital legacy involves more than just preserving your content—it means ensuring your family doesn’t have to deal with the fallout of hacked accounts or impersonation.

Enable Two-Factor Authentication (2FA)

• Set up 2FA on all your accounts. This adds an extra layer of security and prevents unauthorized access.

• Document the 2FA recovery methods and include these in your instructions for your digital executor.

Set Up Legacy and Inactive Account Managers Where Possible

• Platforms like Facebook and Google offer tools to manage your account after it becomes inactive. Make use of these features to specify who can access your accounts and what should happen to them.

Plan for Social Media Revenue Streams

• If you monetize your social media presence (e.g., YouTube ad revenue, sponsored posts), include detailed instructions on how to continue, transfer, or liquidate these income streams.

• Work with a financial planner to structure these assets for long-term management.

6. What to Do If You Have No Heirs Familiar with Social Media Management

If you don’t have family members or trusted friends who are familiar with managing social media or digital assets, consider working with a digital estate planning professional. These experts specialize in handling online accounts, digital legacies, and complex digital wealth. They can help:

• Transfer social media profiles to family members.

• Manage or close online businesses.

• Ensure that your digital presence is protected and preserved according to your wishes.

Common Mistakes to Avoid When Including Digital Assets in Your Estate Plan

Even with the best intentions, it’s easy to overlook key details or make mistakes when planning for digital assets. Given their unique nature and evolving legal landscape, digital assets require special consideration to ensure that your plan is not only comprehensive but also effective. Here are some of the most common mistakes people make when it comes to digital estate planning—and how you can avoid them.

1. Not Keeping an Updated Inventory of Digital Assets

Digital assets are constantly changing. You might buy and sell cryptocurrencies, open a new online investment account, or create a new social media profile—all without updating your estate plan. A static list quickly becomes outdated, making it difficult for your heirs to track down everything.

Why It’s a Problem:

If your inventory doesn’t reflect all of your digital holdings, some assets could be lost forever. For example, a recently purchased cryptocurrency or a new online business could be overlooked, leaving your heirs unaware of their existence.

How to Avoid It:

• Set Up a Review Schedule: Review your digital asset inventory at least once a year or whenever you acquire or dispose of a significant asset.

• Use a Digital Vault: Store your updated inventory in a digital vault or password manager. This makes it easier to update regularly and keeps your list secure.

• Document Each Asset’s Value and Location: Include information on the type of asset, platform, access instructions, and any special notes about management.

2. Ignoring Security Best Practices

Storing access information, private keys, or seed phrases in a careless way can expose your digital assets to theft. This is especially risky for high-value assets like cryptocurrencies, where a single mistake can lead to irrevocable losses.

Why It’s a Problem:

If your private keys or passwords are stored in an insecure location—such as a plain text file on your computer or a sticky note in your desk drawer—they’re vulnerable to hacking, theft, or accidental loss. This not only puts your assets at risk now, but could leave your heirs unable to access them later.

How to Avoid It:

• Use Password Managers: Store sensitive information in a secure password manager that offers high-level encryption.

• Create a Digital Backup: Use a separate, encrypted backup for particularly sensitive assets like private keys and recovery phrases.

• Avoid Storing Keys Directly in Your Will: Since wills become public documents during probate, never include private keys or passwords directly in your will. Instead, reference a secure location where this information is stored.

3. Failing to Include Specific Instructions for Each Digital Asset

Digital assets are not “one-size-fits-all.” Some are meant to be transferred to heirs (like cryptocurrencies), while others may need to be shut down (like social media accounts). Treating them all the same can lead to confusion, conflict, and mismanagement.

Why It’s a Problem:

Without detailed instructions, your heirs may not know what to do with each asset. They could inadvertently lose access to a valuable online business, mismanage a social media profile, or trigger tax liabilities by mishandling a cryptocurrency wallet.

How to Avoid It:

• Write Out Specific Instructions for Each Asset: For example, you might want your YouTube channel to be maintained and monetized by your spouse, while your Twitter account should be deleted.

• Clarify Legal and Technical Steps: Include step-by-step guides for accessing, managing, and transferring more complex assets like digital art or online businesses.

• Designate Responsible Parties: Clearly specify who is responsible for each digital asset. One person might be better suited to handle financial accounts, while another is more comfortable managing social media profiles.

4. Overlooking State and Federal Laws on Digital Assets

The legal landscape for digital assets is still evolving, and different states have varying laws about how digital assets should be managed and transferred. If your estate plan doesn’t align with these laws, your digital executor may run into legal obstacles that prevent them from carrying out your wishes

Why It’s a Problem:

Without considering state-specific laws like the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), your digital executor could be denied access to critical accounts. This is especially true for email and social media platforms, which have strict privacy policies.

How to Avoid It:

• Consult an Estate Planning Attorney: Work with an attorney who understands digital assets and is familiar with both federal and state laws.

• Include Legal Language in Your Estate Plan: Make sure your will, trust, and other documents specifically reference RUFADAA or similar laws to ensure your digital executor has the necessary authority.

• Update Documents Regularly: As laws change, update your estate plan to reflect new regulations and best practices.

5. Assuming Family Members Can Handle Complex Digital Assets

Just because your spouse or child can manage a Facebook account doesn’t mean they know how to access a cold storage cryptocurrency wallet or manage a monetized YouTube channel. Assuming your family members will figure it out can lead to serious mismanagement and the potential loss of valuable assets.

Why It’s a Problem:

If your heirs aren’t familiar with the technical and legal aspects of managing digital assets, they might make costly mistakes—such as accidentally locking themselves out of a crypto wallet or mishandling a business’s online store.

How to Avoid It:

• Provide Training or Resources for Heirs: If your heirs aren’t familiar with complex assets like cryptocurrency, consider providing training or working with a professional to help guide them.

• Create a Step-by-Step Guide: Include detailed instructions on accessing and managing each digital asset. For example, explain how to move cryptocurrencies from a cold storage wallet to an exchange for liquidation.

• Consider Professional Management: If your digital assets are too complex, consider using a digital estate planning firm or a professional fiduciary who specializes in digital asset management.

6. Not Naming a Digital Executor or Legacy Contact

A traditional executor may not have the expertise or legal authority to handle your digital assets. Failing to name a separate digital executor or set up legacy contacts for specific platforms can result in lost access or mismanagement.

Why It’s a Problem:

Without a digital executor, your estate’s traditional executor may struggle to access online accounts, navigate legal hurdles, and manage digital wealth effectively. This could lead to delays, lost value, or unresolved disputes.

How to Avoid It:

• Designate a Digital Executor in Your Estate Plan: Specifically name a digital executor and outline their role in managing digital assets.

• Set Up Legacy Contacts for Platforms that Offer Them: Platforms like Facebook and Google allow you to set up legacy contacts who can manage or close your account after your death. Use these features to simplify access for your heirs.

7. Overlooking the Impact of Taxes on Digital Asset Transfers

Digital assets, especially cryptocurrencies, can have complex tax implications. Improperly structured transfers can result in unnecessary tax burdens for your heirs.

Why It’s a Problem:

Transferring digital assets like cryptocurrency without understanding the tax implications could trigger capital gains taxes, reduce the value of the inheritance, or lead to tax penalties.

How to Avoid It:

• Work with a Tax Advisor: Consult with a tax advisor who is experienced in handling digital assets to structure the transfer in a tax-efficient way.

• Document the Basis of Each Asset: Include the acquisition cost, date, and other relevant details to help your heirs calculate the correct tax basis.

Final Considerations and a Digital Asset Estate Planning Checklist

Now that you’ve navigated the complex world of digital assets, it’s time to bring everything together. Estate planning for digital assets is about more than just protecting wealth—it’s about preserving your legacy, avoiding legal complications, and ensuring your family isn’t left in the dark. As digital footprints become more intricate and valuable, having a solid plan in place is essential. This section will recap key points and provide you with a practical checklist to ensure your digital assets are covered comprehensively.

1. Bringing It All Together: Why Digital Estate Planning Is Essential

Digital assets are here to stay, and they’re growing in value and importance. Failing to include them in your estate plan can lead to serious issues—lost wealth, legal battles, identity theft, and confusion for your family. Traditional estate plans are designed to handle physical assets, but they’re not equipped to manage complex digital holdings like Bitcoin, social media profiles, or online businesses. That’s why creating a digital asset estate plan is crucial.

But the good news is, with the right approach, you can ensure that your digital wealth is protected, your online legacy is managed according to your wishes, and your heirs are not left sifting through a maze of inaccessible accounts. A comprehensive digital estate plan helps you avoid pitfalls, provides clarity, and ensures your assets are passed on smoothly.

2. Digital Asset Estate Planning Checklist

Use this checklist as a starting point to ensure all your digital assets are accounted for, accessible, and securely managed:

Step 1: Identify and Inventory Your Digital Assets

• List all digital assets, including:

• Cryptocurrencies (e.g., Bitcoin, Ethereum) and NFTs.

• Online financial accounts (e.g., PayPal, Venmo, brokerage accounts).

• Online businesses and e-commerce stores.

• Social media profiles (e.g., Facebook, LinkedIn, Instagram).

• Email accounts and cloud storage (e.g., Gmail, Google Drive, Dropbox).

• Digital media collections (eBooks, photos, music).

• Domain names, blogs, and websites.

• Subscription services (e.g., Netflix, Spotify).

• For each asset, document:

• The type of asset.

• Platform or service where it is stored.

• Estimated value (if applicable).

• Location of keys, passwords, or security codes.

• Contact information for customer support (for more complex accounts).

Step 2: Securely Store and Share Access Information

• Use a password manager or digital vault to securely store:

• Passwords and usernames.

• 2FA codes or backup methods.

• Private keys and seed phrases (for cryptocurrencies).

• Step-by-step instructions for accessing and managing each asset.

• Keep your access information up-to-date, and share it only with trusted individuals.

Step 3: Name a Digital Executor and Assign Legacy Contacts

• Choose a digital executor who is comfortable with technology and understands digital platforms.

• Document their responsibilities in your estate planning documents.

• Set up legacy contacts for platforms that offer this feature (e.g., Facebook, Google).

• Clearly outline:

• Which digital assets they are responsible for.

• How they should manage, transfer, or delete these assets.

• Any specific wishes for social media accounts (e.g., memorialization, closure, or transfer).

Step 4: Include Legal Language in Your Estate Planning Documents

• Update your will, living trust, and power of attorney to include language specific to digital assets.

• For example, reference the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) if applicable in your state.

• Include provisions for your digital executor’s authority and specify any restrictions or permissions for managing digital assets.

Step 5: Use Trusts for Complex or High-Value Digital Assets

• For high-value assets like cryptocurrencies, consider setting up a digital asset trust:
• A digital asset trust provides added privacy and control over complex digital holdings.
• Include specific terms for how the assets should be managed and distributed.
• Choose a professional trustee if you don’t have a suitable family member or friend to take on this role.

• Consider setting up a separate business trust for online businesses, domain names, or monetized blogs to ensure smooth management and continuity.

Step 6: Review Tax Implications for Digital Assets

• Work with a tax advisor to document the basis for each digital asset.

• Include acquisition dates and costs, particularly for cryptocurrencies and NFTs.

• Consider the impact of capital gains taxes and inheritance taxes.

• Plan for how these taxes will be paid, and include instructions for your executor.

Step 7: Include Detailed Instructions for Your Heirs

• Write out step-by-step instructions for heirs who may be unfamiliar with digital assets.

• Explain how to access and manage specific assets.

• Provide guidance on how to handle different types of digital accounts—e.g., selling a domain name, transferring cryptocurrency, or monetizing a YouTube channel.

Step 8: Plan for Regular Updates

• Set a schedule to review and update your digital estate plan annually.

• Include new assets and remove any that have been sold or discontinued.

• Review who has access and update your digital executor as needed.

• Check for any changes in state and federal laws that may impact your plan.

3. What to Do If You Need Professional Help

Creating a digital estate plan can feel overwhelming, especially if you have significant digital holdings or complex online businesses. Don’t hesitate to seek help from professionals who specialize in digital estate planning. Consider working with:

• Digital Estate Planning Attorneys: They can help draft customized legal documents to ensure your digital assets are managed according to your wishes.

• Financial Planners Familiar with Digital Wealth: They can help integrate digital assets into your broader estate plan.

• Digital Fiduciaries or Custodians: If your digital assets are highly complex or valuable, a digital fiduciary can manage these holdings on your behalf, ensuring that they are passed on securely.

4. Avoiding Pitfalls: Final Words of Advice

• Don’t Procrastinate: The sooner you start planning for your digital assets, the better. Waiting too long could mean assets get overlooked or are left vulnerable to mismanagement.

• Be Transparent: Make sure your heirs and executors are aware of your digital estate plan and understand what their responsibilities will be.

• Stay Up-to-Date: As digital assets evolve, so too should your estate plan. Keep up with new regulations, best practices, and emerging types of digital wealth.

Protect Your Digital Legacy

Creating a digital estate plan isn’t just about protecting wealth—it’s about safeguarding your digital legacy, providing peace of mind to your loved ones, and ensuring that your hard-earned assets are passed on efficiently. With a solid plan in place, you can rest assured that your Bitcoin, online businesses, social media profiles, and other digital assets will be handled just as you intended.

Need help creating a comprehensive digital estate plan? Reach out to us today to develop a strategy that secures your digital legacy and ensures your wealth is protected for generations to come. Let’s create a plan that fits your unique digital footprint.