Much of what once existed in physical form now lives entirely online. Photos, finances, businesses, subscriptions, and even pieces of our identity are stored on devices, platforms, and cloud-based accounts. Without planning, these digital assets can be lost or become inaccessible after death.
For most people, the line between physical and digital life has largely disappeared. You may never hold cryptocurrency in your hand, but you can move it instantly using the phone in your pocket. You may never step inside your online business, but it can generate real income that flows through digital accounts you rarely see in tangible form.
These assets are real. Often, they are valuable. Yet many estate plans still overlook them.
A will may address a home or heirlooms, but what about payment apps, photo libraries, online accounts, or digital wallets?
A Day in the Digital Life
Think about how many digital assets you interact with in a single day. A phone unlocks to reveal years of photos, messages, authentication codes, and account access. You may check banking and investment apps, pay bills, manage subscriptions, access cloud storage, or move money through platforms like PayPal or Venmo.
By the end of the day, you have likely used dozens of digital accounts. Some hold monetary value. Others hold irreplaceable personal history. Most people do not think of these items as part of their estate, but they are.
Surveys show that many Americans place significant value on their digital assets and believe protecting them is important. Yet fewer than half say digital assets have ever been discussed as part of their estate planning process. Many people also underestimate how large their digital footprint has become, with some reporting dozens or even hundreds of accounts they rarely think about.
This gap between use and planning is where problems arise.
What Counts as a Digital Asset?
Digital assets include electronically stored information you own, use, control, or derive value from, as well as the accounts, platforms, and devices that store that information.
Common examples include:
- Emails, text messages, photos, and videos
- Social media profiles and online accounts
- Websites, blogs, and domain names
- Cryptocurrency and digital wallets
- Online banking and investment accounts
- Payment apps and reward programs
- Subscription-based services and digital libraries
- Business platforms such as e-commerce stores and payroll systems
- Password managers and authentication tools
- Devices connected to cloud-based accounts
Because digital assets are woven into everyday life, it can be difficult to recognize them as distinct property that requires intentional planning. But failing to do so can leave loved ones locked out of important accounts, finances, and memories.
Common Digital Estate Risks and How Planning Helps
Even people who understand digital assets often overlook them when creating an estate plan. Some of the most common issues include not knowing what digital assets exist, losing access to important accounts, or leaving executors without authority to act.
Creating a digital asset inventory is often the first step. Walking through a typical day, week, or month can help identify apps, platforms, subscriptions, and accounts that might otherwise be forgotten.
Access is another key concern. Loved ones may be unable to recover payment balances, digital currency, or important records without clear instructions and legal authorization. Storing access instructions securely and letting a trusted person know where they are kept can help prevent permanent loss.
Digital assets also include personal history. Photos, videos, messages, and documents may exist only on a single device or locked cloud account. Without planning, these materials can disappear. Many platforms allow users to designate legacy contacts or provide limited access after death, but these settings must be chosen in advance.
Executors can also face barriers when settling an estate. Without explicit authority, they may be unable to access online bills, statements, or records needed to administer the estate. Naming a digital executor or granting clear access rights in a will or trust can help avoid delays and confusion.
Finally, digital assets can expose an estate to fraud or identity theft after death. Dormant accounts and public information can create opportunities for misuse. Maintaining an up-to-date digital asset list and reducing public exposure through planning can help protect both the estate and surviving family members.
Bringing Your Digital Estate Into the Present
We live in a digital world, and estate plans that were written even five years ago may not reflect how much of a person’s financial life and personal history now exists entirely online. An account, a photo library, a cryptocurrency wallet, a small online business: these are real assets, and they require the same intentional planning as anything else a family might want to protect or pass down.
If your plan has not been reviewed with digital assets in mind, that gap is worth closing. The free guide we put together for Alabama families is a good place to start. The Estate Planning Book for Alabama Families covers wills, trusts, beneficiary designations, and how to think through your options, written by Mark Eiland, founder of Heircraft Planning. You can download it at no cost on our website.
Heircraft Planning also offers free educational seminars in Mobile for individuals and families who want to explore these topics in depth. Light dinner is provided. You can find upcoming dates and register at heircraftplanning.com/upcoming-events. If you are ready to talk through your specific situation, you are also welcome to schedule a consultation directly.
