Hey there! Remember when estate planning just meant deciding who gets the house and the family heirlooms? Well, times have changed, and in 2025, your digital footprint is just as important as your physical one!
What Are Digital Assets, Anyway?
These days, a modern estate doesn't just include physical items and money. Your digital assets have become an increasingly critical part of your legacy. But what exactly counts as a digital asset?
Think about all those photos you've stored in the cloud, your email accounts packed with important correspondence, your social media profiles documenting your life's journey, and maybe even those cryptocurrency investments that have (hopefully!) grown in value. All of these are considered digital assets.
According to a recent 2025 survey by Bryn Mawr Trust, Americans now estimate their digital assets to be worth an average of $191,516, yet a whopping 76% still have little knowledge about digital estate planning. That's a lot of value potentially at risk!
The average person now manages approximately 168 online accounts, according to data from NordPass—and that number just keeps growing. From Netflix and Spotify subscriptions to online banking and investment platforms, our digital lives have become incredibly complex.
Why You Should Care About Your Digital Assets
Maggi Keating, a CFP at FBB Capital Partners, who emphasized why this matters told the Kiplinger magazine: “It's not just in regards to your crypto holdings, it's all your online presence, from social media accounts to online subscriptions. These things need to be dealt with in a legal way.”
Without proper planning, here's what could happen:
- Your accounts become inaccessible: Many digital assets become completely inaccessible after a person dies. Accounts requiring passwords could be impossible to access.
- Your memories could vanish forever: Sites often delete accounts after extended periods of inactivity. Those precious family photos and videos stored in the cloud? They could be lost permanently.
- Financial losses can occur: Many financial accounts today are administered online. Without proper access instructions, your loved ones might face unpaid bills or loss of income from online businesses.
Remember what happened to Peggy Bush back in 2020? After her husband passed away, she couldn't access his iPad because she didn't know his Apple password. Even after showing Apple the death certificate, they refused access until she obtained a court order. While Apple eventually worked with the family, it highlights how failing to plan for digital assets creates additional stress during an already difficult time.
The Legal Landscape in 2025
The good news is that laws have evolved to address these issues. As of February 2025, 47 states have adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which creates a framework for how digital assets can be managed after death.
RUFADAA establishes a clear hierarchy for managing digital assets:
- Online tools take precedence: If you've used a platform's designated tool (like Google's Inactive Account Manager or Facebook's Legacy Contact), those instructions override everything else.
- Legal documents come next: If there's no online tool designation, then your will, trust, or power of attorney instructions apply.
- Terms of service as a last resort: If neither of the above exists, the platform's terms of service agreement dictates what happens.
The challenge? Many people still don't utilize these options. A specialist in estate planning, Matt McClintock from The Bespoke Group, predicts more cryptocurrency exchanges will begin offering beneficiary designations in the future, but we're not quite there yet.
Cryptocurrency and NFTs: The New Frontier
The digital asset landscape has expanded dramatically with the rise of cryptocurrency and NFTs (non-fungible tokens). If you own Bitcoin, Ethereum, or other cryptocurrencies, these need special consideration in your estate plan.
Unlike traditional assets, cryptocurrency operates on decentralized blockchain technology, creating unique challenges for estate planning. The private key—a string of alphanumeric characters—is the only way to access these assets. If your heirs don't have this key, your crypto wealth could be permanently lost.
I recently read about a Welsh man who accidentally threw away a hard drive containing Bitcoin worth half a billion dollars! Can you imagine your family losing access to assets of that magnitude because of poor planning?
NFTs present similar challenges. These unique digital tokens representing ownership of digital art, virtual real estate, or other blockchain-verified assets require specific technical knowledge to transfer ownership. Their unique nature means they need special consideration in your estate planning.
Creating Your Digital Estate Plan for 2025
Ready to get your digital house in order? Here's a step-by-step approach:
1. Take Inventory of All Digital Assets
Start by creating a comprehensive inventory including:
- Email accounts and social media profiles
- Online banking and investment accounts
- Subscription services
- Digital purchases (music, books, movies)
- Online businesses or income-generating websites
- Cryptocurrency wallets and NFT collections
- Cloud storage accounts with photos and documents
- Loyalty program rewards and airline miles
2. Document Access Information (Securely!)
For each asset, document:
- Account names and URLs
- Usernames (but never include passwords in your will, as it becomes public after death)
- Two-factor authentication recovery codes
- Security question answers
Store this information securely using one of these 2025 solutions:
- Password Managers: Tools like 1Password, LastPass, and Keeper now offer specific estate planning features. Keeper, for example, lets you designate up to five contacts to access your passwords after death and allows you to set an inactivity timeframe before your trusted contacts can access your account—all for just $2.50 a month.
- Digital Estate Management Systems: SecureSafe ($4/month) allows you to designate which files go to specific business partners, family members, or friends, ensuring everything is distributed correctly.
- Estate Planning Software: New tools like GoodTrust (specifically designed for digital estate planning) help you manage both physical and digital assets with a simplified approach that takes about 20 minutes to complete.
3. Name a Digital Executor
Designate someone tech-savvy as your “digital executor” to handle your online accounts after death. This person should have:
- Technical knowledge to access various platforms
- Understanding of your wishes for each account
- Discretion to handle personal data appropriately
While not all states formally recognize the role of a digital executor, naming one in your estate documents provides valuable guidance for your family.
4. Include Legal Authorization
Make sure your will or trust explicitly:
- Provides your executor with authority to access, transfer, and dispose of digital assets
- References your separate password document (remember, never include passwords in the will itself)
- Addresses cryptocurrency and NFTs specifically if you own them
For cryptocurrency, consider options like:
- Hardware wallets titled in the name of a trust
- Detailed instructions for heirs on accessing private keys
- Split private keys among trusted individuals for security
5. Express Your Wishes Clearly
For each digital asset, specify whether you want it:
- Deleted
- Archived
- Memorialized (for social accounts)
- Transferred to specific heirs
For example, you might want your spouse to have access to family photos, your business partner to take over your professional accounts, and certain social media profiles to be deleted entirely.
Tools Making Digital Estate Planning Easier in 2025
The good news is that the industry has recognized these challenges, and new tools are emerging to help:
- Platform-Specific Legacy Features: Facebook's Legacy Contact, Google's Inactive Account Manager, and Apple's Digital Legacy program let you designate someone to access your accounts after death.
- Estate Planning Software: Platforms like GoodTrust and Vanilla now offer specific digital asset management features. Docupilot stands out for automating repetitive estate documents, making it ideal for handling high volumes of simple plans.
- Cryptocurrency Solutions: New services are emerging to help with crypto estate planning, including multi-signature wallets and specialized legal frameworks.
Don't Wait Until It's Too Late
Estate planning attorneys will always remind you that dealing with digital assets now will ensure that your loved ones and heirs aren't spending an already difficult time scrambling for passwords and account access—which is probably not the legacy you intended to leave.
Taking just a few hours to document your digital assets today could save your loved ones countless hours of stress later. Plus, with regular updates (aim for yearly), you can ensure your digital legacy is managed exactly as you wish.
So what are you waiting for? Pour yourself a cup of coffee (probably costing more than a monthly password manager subscription these days!), sit down, and start planning your digital legacy. Your future self—and your family—will thank you for it!
Remember: While this article provides general guidance, digital estate planning laws vary by jurisdiction. Consult with an estate planning attorney familiar with digital assets in your specific location for personalized advice.
