Money and real estate are traditional assets that most people think of when creating an estate plan. However, you also have social media pages, photos on your phone and everything from ebooks to shopping lists on your digital devices. When you die, what happens to all these digital assets needs to be planned just as much—or maybe more—than traditional assets.
A recent article from The New York Times, “How to Prepare for Your Digital Afterlife,” explains the steps necessary to protect your identity and digital property with a digital asset estate plan.
Create a digital directive. A law known as RUFADAA (Revised Uniform Fiduciary Access to Digital Assets Act) allows you to give an individual the authority to manage your digital life. Most states have enacted this law; your estate planning attorney will know your state’s laws. You’ll want to create a document listing your accounts and a document telling how you want your online accounts and digital content managed if you are incapacitated or die. This should be included in your other estate planning documents.
Sharing account logins, usernames and passwords needs to be done carefully. You’ll need to store this information in a safe place, as it could be used to steal your assets and identity. This includes financial institutions, e-commerce stores like Amazon or eBay, insurance policies, online storage, email, social media, cable and wireless carriers, medical portals and media subscriptions.
There are password managers you can use, and some platforms, like Apple and Google, have apps to save this information. If you’d prefer to stay analog, use something as simple as a notebook. Just be sure to keep it in a home safe or another secure location.
Include the passwords and codes needed to log into the password manager itself and how to access your cell phone, tablet, laptop, or desktop computer. Your executor may also need your contact list so they can reach out to people to inform them of your passing. They’ll also need to be able to use your phone for any accounts requiring two-factor authentication.
Name a legacy contact and ask if they are willing to help. Just as you need to discuss your wishes for someone to be your executor, you also need to speak with your digital executor to ensure that they can and are willing to help your family with this process. In Apple, Google, Facebook, and some other accounts, you can name a legacy contact, the person who has your permission to manage the account after you’ve passed.
If you’re trying to handle digital assets for someone who didn’t make plans for their digital assets, you can expect it to take longer to settle the estate. Your first act may be to shut down social media profiles and other accounts to avoid identity theft. Notify the social media companies and request that they close their accounts. You’ll need a death certificate, identification and Letters Testamentary—court-issued documents provided to an executor to prove their authority to represent the decedent and their estate and your personal identification.
Unlike paper statements, digital assets, including cyber currency, don’t have a trail to follow. There won’t be filing cabinets stuffed with old statements or shoeboxes of invoices for anyone to reconstruct your life, so planning for your digital assets will make life easier for your executor and heirs.
Reference: The New York Times (Feb. 12, 2025) “How to Prepare for Your Digital Afterlife”