Estate Planning for Digital Assets: Protecting Your Online Life and Legacy
In today’s digital world, many of us have assets and personal memories stored online—yet, surprisingly, digital assets are often overlooked in estate planning. From family photos and social media accounts to cryptocurrency and online banking, our digital lives have real value, both financially and emotionally. But what happens to these assets when we’re gone? Estate planning for digital assets ensures your online presence is managed according to your wishes and that valuable or sensitive information is protected. Here’s how to incorporate digital assets into your estate plan and secure your online legacy.
Why Digital Assets Matter in Estate Planning
Digital assets are just as real and valuable as physical ones, yet many people don’t think to include them in an estate plan. Losing access to these assets can be difficult for loved ones who may want to preserve memories, close accounts, or protect financial assets. Without instructions, family members are often left guessing about how to handle a person’s online presence after they pass away. Digital estate planning simplifies this process and allows you to specify how your digital life should be managed.
Types of Digital Assets to Consider
Digital assets fall into several categories, each with unique considerations. Here are some of the most common types to include in your estate plan:
Social Media Accounts: Platforms like Facebook, Instagram, LinkedIn, and Twitter store personal memories, photos, and interactions with friends. Some platforms allow you to name a “legacy contact” to manage your account after you pass, while others have specific procedures for closing or memorializing accounts.
Email Accounts: Your email may contain sensitive information, important contacts, and subscriptions. Gmail, Yahoo, and other providers have policies for posthumous access, but an authorized person will need clear instructions to handle these.
Photos and Videos: Many people store priceless memories in cloud-based platforms like Google Photos, iCloud, or Dropbox. Without access, loved ones may lose valuable family photos and videos.
Digital Financial Assets: This category includes online bank accounts, retirement accounts, and cryptocurrency. Cryptocurrencies like Bitcoin and Ethereum are highly secure and nearly impossible to access without specific instructions, making them essential to include in estate planning.
Subscriptions and Digital Services: From Netflix to Dropbox and Amazon Prime, you may have various accounts with active subscriptions. Leaving instructions to close these accounts can help loved ones manage your digital presence and avoid unnecessary fees.
Domain Names and Websites: If you own domain names or run websites, these can have personal or financial value. Specifying who should take control of these assets can help preserve your work and ensure continuity.
Taking stock of your digital life and identifying the accounts that matter to you is the first step toward incorporating them into your estate plan.
How to Include Digital Assets in Your Estate Plan
Incorporating digital assets into an estate plan requires a few additional steps beyond the standard will or trust. Here’s a guide to making sure your online presence is managed according to your wishes:
1. Create a Comprehensive Inventory
Start by making a detailed list of your digital assets. Include:
Account names (e.g., social media, email, banking, photo storage, etc.)
Usernames and passwords
Any relevant security settings (e.g., two-factor authentication)
Instructions for each account (whether to delete, memorialize, or transfer it)
Keeping this list secure is essential—consider using a password manager that allows sharing of access upon death or disability, or write it out and store it with other important documents in a secure location.
2. Name a Digital Executor
A digital executor is someone you trust to manage your online presence according to your instructions. While Michigan law doesn’t officially recognize “digital executors,” you can still assign this responsibility in your estate plan. Choose someone tech-savvy who understands how to handle digital accounts and assets. They don’t need to be the same person as the executor of your traditional estate, but it’s essential to communicate their role clearly.
Your digital executor will follow your instructions, such as:
Memorializing or deleting social media accounts
Accessing and transferring photos or other stored memories
Handling cryptocurrency and other digital assets according to your wishes
Closing or transferring subscriptions and online services
3. Provide Specific Instructions for Each Asset
Not all digital assets are handled the same way, so give specific instructions for each account or category. For example:
Social Media: Specify if you’d like your accounts memorialized, deleted, or transferred to a trusted person. Many platforms have settings that allow you to name a contact or provide instructions.
Financial Assets and Cryptocurrencies: Be especially detailed with cryptocurrencies, as these assets often require passwords, PINs, and backup codes. Without these, assets could be lost permanently. Include all necessary information in your estate plan, ideally in a secure document shared with your executor or digital executor.
Photos and Videos: Instruct your digital executor on how to handle photos and videos. You may want them shared with family members or transferred to a particular account.
These specific instructions give your digital executor clear guidance on your wishes, helping them avoid confusion or potential errors.
Legal Considerations for Digital Assets in Michigan
Michigan, like many states, has enacted laws to help govern access to digital assets. The Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) allows fiduciaries, such as executors, to access digital assets in specific circumstances. However, the law is complex, and many online platforms have their own terms and policies regarding posthumous access.
Terms of Service Agreements: Many platforms have rules that prohibit sharing login details or allowing others to access an account. Your digital executor may need to work directly with providers to fulfill your instructions.
Legal Documentation: Although Michigan law provides some access rights, including your digital assets directly in your estate plan (alongside a digital inventory and instructions) makes it easier for your executor to act according to your wishes.
Working with an attorney familiar with Michigan’s digital estate laws can ensure your plan complies with the relevant regulations.
Why Including Digital Assets in Your Estate Plan Matters
Digital estate planning offers several benefits, both for you and your loved ones:
Protects Your Legacy: Specifying how digital assets are managed preserves your digital presence and ensures sensitive information is handled securely.
Avoids Unnecessary Fees: Proper instructions help your executor close paid subscriptions or services, avoiding ongoing charges.
Minimizes Stress: An organized digital estate plan simplifies your loved ones’ responsibilities and prevents them from dealing with locked or inaccessible accounts.
Secures Financial Assets: Digital financial assets, like cryptocurrency or online investment accounts, require specific access credentials. Without these, funds may be lost or remain inaccessible.
By thoughtfully including digital assets in your estate plan, you can ensure that your online presence and assets are managed responsibly.
Taking the Next Steps
Creating an estate plan that includes digital assets may seem complex, but it can be made manageable by following these steps and consulting a knowledgeable attorney. An estate planning attorney can guide you through the nuances of digital assets, helping ensure you cover all bases and include clear instructions for your loved ones.
Start by inventorying your accounts and categorizing them based on your wishes. From there, you can work with your attorney to finalize an estate plan that ensures your online legacy is protected, giving you peace of mind and sparing your loved ones from unnecessary difficulties.
