When most people think about estate planning, they picture wills, trusts, bank accounts, and maybe real estate. But in today’s digital world, there’s a whole new category of assets that’s easy to overlook—your digital assets.
Think about how much of your life is online: email, social media, investment platforms, photos, subscription services, even cryptocurrency. These assets hold financial and emotional value, and if you don’t include them in your estate plan, your loved ones might not be able to access them when it matters most.
What Counts as a Digital Asset?
Digital assets can be anything that exists in an online or electronic format and comes with some form of ownership or access rights. Here are a few examples:
- Financial accounts – Online banking, investment portals, and cryptocurrency wallets
- Personal content – Emails, digital photo albums, cloud-stored documents
- Social media – Facebook, Instagram, LinkedIn, Twitter
- Subscriptions and loyalty programs – Netflix, airline miles, digital publications
- Business assets – Websites, domain names, e-commerce accounts
Some of these hold monetary value, but others are simply meaningful—like the digital photo archive that tells your family’s story. Either way, without a plan, access can be lost or legally restricted.
Why Planning Matters More Than Ever
Unlike physical possessions, digital assets often come with terms of service that limit access—even to family or executors. Just sharing your passwords may not be enough (or even allowed). Most states now follow a law called the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which requires written, legal permission in your estate documents to access your online accounts. Check your state here.
Without that permission? Your family could be locked out or face long delays dealing with tech companies.
Steps to Help Protect Your Digital Legacy
Here’s how to make sure your digital life is accounted for in your estate plan:
1. Start with an Inventory
List out all your digital accounts, usernames, and passwords. Think broadly—include financial accounts, social media, cloud storage, subscriptions, and any business-related platforms.
Tip: Use a secure password manager like LastPass or 1Password to store this info. These tools not only keep your information safe but often offer a way to give trusted contacts emergency access if needed. Kowal Financial Advisors’ online portal where you view your accounts has a vault where you can store your important documents to keep them secure and accessible
2. Make Note of Two-Factor Authentication (2FA)
Even with the right password, many accounts require a second verification step—usually a code sent to your phone or an authenticator app. Be sure to document which accounts use 2FA, how it’s set up, and how someone can access backup codes in the event of your death.
3. Name a Digital Executor
Consider designating someone to handle your digital accounts. This doesn’t have to be the same person who’s managing your entire estate—just someone you trust and who understands the online world.
4. Add Digital Provisions to Your Will or Trust
Work with your estate attorney to include instructions about your digital assets. Be specific—some accounts may need to be closed, others may be passed on or archived. With the right legal language, your wishes can override a company’s default policies.
5. Use Legacy Tools on Major Platforms
Some platforms now let you plan ahead:
- Facebook lets you name a legacy contact.
- Google allows you to set up an Inactive Account Manager.
These tools make it easier for your family to manage or close accounts when the time comes.
6. Keep It Up to Date
New accounts, updated passwords, 2FA changes—it’s all part of life. Make it a habit to review and update your digital asset plan at least once a year.
Final Thoughts
We live much of our lives online now, which means digital assets deserve the same attention as physical ones in your estate plan. Taking a few extra steps today can prevent a lot of stress and confusion later.
At Kowal Financial Advisors, we help our clients navigate this evolving landscape as part of a comprehensive estate planning strategy. If you haven’t yet accounted for your digital assets, we’re here to help you get started—with a plan that works for your life today and protects your legacy tomorrow.
