Digital Assets: Estate Planning in the Modern Era

Posted on: 9th June 2025 in Estate Planning

In today’s world, much of our lives are lived online. From email accounts and social media profiles to digital wallets and online businesses, we’re building a digital legacy—often without realising it.

But what happens to all this digital property when we’re no longer here?

Estate planning used to focus on homes, bank accounts, and family heirlooms. Now, it must also include digital assets.

This article will guide you through what digital assets are, why they matter, and how to make sure they’re part of your estate plan.

What Are Digital Assets?

Digital assets are anything you own or control online. These can be personal, financial, or business-related. Common examples include:

• Personal assets: email accounts, cloud-stored photos, social media profiles
• Financial assets: online bank accounts, cryptocurrency, PayPal or Wise accounts
• Business assets: websites, domain names, online stores, advertising accounts
• Other accounts: airline miles, subscription services, cloud software tools

Some of these have clear financial value. Others, such as family photos or personal messages, hold deep sentimental value. Either way, they deserve protection.

Why Digital Estate Planning Matters

Think about how many passwords you use every day. Now, imagine a loved one trying to access your accounts without that information. Without a digital estate plan, your family or executor might face:

• Legal hurdles: Many platforms have strict privacy rules and won’t release data without a court order.
• Lost value: Cryptocurrencies or online business income could disappear if no one can access them.
• Emotional stress: Losing access to meaningful memories can be deeply upsetting.
• Security risks: Unattended accounts can be hacked or misused.

Adding digital assets to your estate plan is an act of care—for your legacy and your loved ones.

Key Steps in Digital Estate Planning

1. Create a Digital Asset Inventory

Start by making a list of your digital assets. Include:

• What the asset is (e.g. Gmail account, Bitcoin wallet)
• How it’s accessed (username, password, recovery methods)
• Whether it has financial or sentimental value

Store this list securely, such as in a password manager or encrypted file. Don’t include your passwords in your will—those documents may become public.

2. Decide What Should Happen to Each Asset

Ask yourself:

• Should this account be closed or preserved?
• Do I want someone to inherit this asset?
• Should certain content (e.g. photos or posts) be deleted?

For example, you may want your social media profiles memorialised or removed while ensuring your cryptocurrency is passed on.

3. Appoint a Digital Executor

A digital executor is someone you trust to manage your online accounts after you pass away. They might be different from your main executor, especially if they’re more tech-savvy.

Provide them with clear instructions, and verify whether your country or local laws permit this role. In some places, it must be included in your will to have legal power.

4. Include Digital Assets in Your Legal Documents

Speak to a solicitor about updating your will or adding a codicil (an addition to your will). Make sure to reference your digital assets and who should manage them.

Some platforms also let you choose what happens after your death. Facebook, for instance, allows you to assign a “legacy contact”. Google offers an “Inactive Account Manager”.

Special Considerations for High-Value Digital Assets

Cryptocurrency and NFTs

Cryptocurrencies, such as Bitcoin and Ethereum, are considered property in many countries. If your loved ones don’t have your private keys or recovery phrases, they may never be able to access your wallet—even with a will.

Store this information securely and let your executor know how to find it. Also, keep a record of your transactions for tax purposes.

Online Businesses

Do you earn income from YouTube, Etsy, or affiliate marketing? These platforms are also digital assets. Make sure there’s a plan in place for someone to access and manage your accounts or transfer ownership.

Understanding the Legal Landscape

Laws around digital inheritance are still developing.

In the United States, most states follow a law called RUFADAA, which allows executors to access digital accounts under certain rules. The UK and EU are catching up, but local laws vary.

Wherever you live, it’s smart to:

• Talk to a solicitor who understands digital estates
• Check if digital wills or electronic signatures are valid in your country
• Review the terms of service of your main online platforms

Keeping It Updated and Secure

Your digital life is always changing—so your plan should, too. Review your digital asset inventory once a year or whenever you open new accounts or buy digital property.

Use secure storage tools like password managers, and make sure your executor knows where to find them. Never write passwords directly into your will.

Final Thoughts

Your digital life is part of your legacy. Including it in your estate plan ensures your assets are protected, your wishes are followed, and your loved ones are spared unnecessary stress.

Take the first step today:

• Make an inventory
• Choose your digital executor
• Speak to your solicitor

Digital estate planning might sound complex, but it’s really about making life easier for the people you leave behind.

Working with a financial adviser can help you align your digital assets with your broader legacy goals.

Speak to Holborn today to learn how we can help you.