What Happens to Digital Assets After You Pass Away?

In today’s digital world, our lives are increasingly intertwined with online platforms, from banking and email accounts to social media profiles and cryptocurrency wallets. But have you ever stopped to think about what happens to these digital assets when you’re no longer here? While estate planning traditionally focuses on physical assets like homes and bank accounts, digital assets are an often overlooked yet essential part of modern planning.

This guide will walk you through how to incorporate your digital life into your estate plan and ensure your online presence is handled according to your wishes.

What Are Digital Assets?

Digital assets include any online or electronic property that you own or control. Examples include:

• Financial Accounts: Online banking, PayPal, Venmo, cryptocurrency wallets.

• Social Media Accounts: Facebook, Instagram, LinkedIn, Twitter, TikTok.

• Email Accounts: Gmail, Yahoo, Outlook, etc.

• Subscriptions and Services: Netflix, Amazon, Apple ID, Spotify.

• Stored Data: Photos, videos, and documents on cloud storage platforms like Google Drive, iCloud, or Dropbox.

• Domain Names and Websites: Any domains or websites you own, especially for personal or business purposes.
  

Why Do Digital Assets Matter in Estate Planning?

Without proper planning, your digital assets could become inaccessible, lost, or misused.

Consider this:

• A social media account could become a target for hackers if left unmonitored.

• Family members may struggle to access important financial accounts or sentimental photos stored online.

• Cryptocurrency investments, without access keys or instructions, could be lost forever.

Addressing these assets in your estate plan ensures your loved ones can access and manage them appropriately.

Steps to Protect Your Digital Assets

Here are some practical steps to incorporate your digital life into your estate plan:

1. Create a Digital Asset Inventory

Start by listing all your digital accounts, including usernames, passwords, and associated security questions. You can use a password manager, like LastPass or 1Password, to store this information securely.

2. Understand Platform Policies

Each online platform has its own rules about what happens to accounts after death.

• Facebook offers a Legacy Contact option, allowing someone to manage your account or memorialize it.

• Google’s Inactive Account Manager lets you specify what happens to your account after a period of inactivity.

• Apple accounts typically require a court order to access unless you’ve designated someone in your estate plan.

Understanding these policies can help you make decisions about how each account should be handled.

3. Include Digital Assets in Your Estate Plan

Work with an elder law or estate planning attorney to formally include your digital assets in your will or trust. This involves:

• Naming an executor (someone who will manage your digital assets).

• Providing clear instructions on how assets should be accessed, transferred, or deleted.

• Authorizing your executor to bypass any privacy laws that might restrict access.

4. Use Pennsylvania’s Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA)

In Pennsylvania, the RUFADAA allows you to authorize someone to access your digital assets after you pass. This law can override the terms of service agreements for platforms that otherwise restrict access to accounts. It’s critical to include explicit permission in your estate plan for your executor to use this law.

5. Secure Important Files

If you have valuable files, like tax documents, business records, or family photos, ensure they are backed up in a secure location that your executor can access.

Common Digital Asset Challenges

Managing digital assets isn’t always straightforward. Here are some potential challenges to be aware of:

• Password-Protected Accounts: If passwords aren’t documented, it can be difficult to access accounts.

• Cryptocurrency Wallets: Without access keys, cryptocurrencies like Bitcoin are nearly impossible to recover.

• Terms of Service Agreements: Many platforms have strict privacy policies that can prevent family members from accessing accounts.

• Lack of Awareness: Loved ones may not even know which accounts exist without proper documentation. Your digital assets are as much a part of your legacy as your home or financial accounts. Incorporating them into your estate plan ensures they’re managed according to your wishes and reduces stress for your loved ones during an already difficult time.

At Anderson Elder Law, we help families in Pennsylvania plan for all aspects of their future, including their digital lives. If you’re ready to take the next step in securing your legacy, we’re here to guide you.