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Estate planning used to mean drawing up a will, designating beneficiaries, and making sure enough life insurance was in place. However, that is only half the battle in today’s digitally driven world. Clients now own online bank accounts, digital wallets, music and media subscriptions, and social media profiles that carry both financial and sentimental value.
Ignoring these digital assets can lead to headaches, lost resources, and even legal complications for their families when their loved ones pass away. That’s why I’m advising all my clients—regardless of age or wealth—to make digital estate planning an essential part of their overall strategy.
Key Takeaways
- Digital estate planning is now a must-have, not an afterthought.
- Preparing a full inventory of online accounts (usernames, passwords, and access keys) is critical for a seamless transition.
- Naming a digital executor ensures someone can legally and efficiently manage and distribute digital assets.
- Clear directives on what should happen to social profiles, cryptocurrency holdings, and online subscriptions reduce confusion and stress.
- Collaborating with an estate attorney can help integrate digital provisions into existing wills and trusts.
So much of life has moved online. It’s no longer just tech-savvy millennials who must worry about digital estate planning. I’ve worked with retirees with investment accounts they manage on digital trading apps, families collecting royalties through online publishing platforms, and individuals storing significant holdings in cryptocurrency. If something were to happen to them and no one had the necessary login credentials or legal authority, these assets may become inaccessible—or worse, lost entirely.
Furthermore, digital platforms each have their own policies. Facebook, for instance, allows someone to memorialize or remove an account. Google has an Inactive Account Manager feature, and many cryptocurrency wallets have unique recovery processes. Clients incorrectly assume that their loved ones can “figure it out” when the time comes. However, accessing online assets can be incredibly time-consuming and even impossible without prior planning.
What I’m Telling My Clients
1. Create a Comprehensive Digital Inventory
I encourage clients to build a secure, detailed list of all their digital assets, including the platform name, web address, usernames, passwords, and any two-factor authentication methods for accessing accounts. This inventory should also outline how they want each asset handled—whether it’s deactivating a social account, transferring cryptocurrency to an heir, or continuing a subscription for ongoing services.
Warning
According to a survey from Bryn Mawr Trust, 76% of respondents reported having little or no knowledge of digital estate planning.
2. Designate a Digital Executor
While the executor of a will might oversee financial matters broadly, I recommend naming a tech-savvy individual who understands how to navigate platforms and carry out the client’s wishes. This “digital executor” may need the authority to close accounts, transfer funds, or communicate with tech companies.
3. Include Digital Clauses in Legal Documents
Working closely with estate attorneys, I ensure that digital assets and directives are explicitly mentioned in the will or trust. This can speed up the process and prevent disputes or legal snags down the road.
Additionally, many states now have legislation governing digital assets, so aligning with local laws helps protect the client’s interests.
The Bottom Line
Digital estate planning is no longer optional; it’s a core component of safeguarding a modern legacy. By setting up a secure plan for their online accounts and appointing someone to handle those assets, clients can protect not only their monetary wealth but also their memories and personal content.
From social media to online investments, being prepared ensures loved ones won’t have to scramble for access or lose valuable assets. In my practice, I’ve found that integrating digital estate provisions into a broader financial plan offers both my clients and their families greater peace of mind.
