How Can Digital Assets Be Incorporated Into Modern Estate Planning?
May 8, 2025
In today’s connected society, our lives increasingly unfold online. As a result, digital assets have become just as important as physical property when planning for the future. They're a crucial aspect of family law, but despite their importance, digital assets often get overlooked in traditional estate planning documents.
Incorporating digital assets into an estate plan means recognizing their value, deciding who will manage them, and using the right tools to protect them for the next generation. At The Law Office of Ivy L. Graham in Denham Springs, Louisiana, we’re committed to helping our clients make these important decisions.
An Overview of Digital Assets
Before we go into how to include digital assets in an estate plan, it helps to know what qualifies as one. According to family law practices, digital assets come in many forms, and not all of them have financial value.
Common examples of digital assets include:
Email accounts: Gmail, Outlook, Yahoo, etc.
Social media profiles: Facebook, Instagram, TikTok, LinkedIn
Online financial accounts: PayPal, Venmo, online banking platforms
Cryptocurrency holdings: Bitcoin, Ethereum, and other tokens
Digital wallets and investment apps: Robinhood, Coinbase, Cash App
Cloud storage: Google Drive, iCloud, Dropbox
Digital photos, videos, and personal documents
Domain names and blogs
Online businesses and storefronts
NFTs and digital collectibles
Some of these assets carry emotional or sentimental value, while others may represent real money or ongoing income. Both types matter and should be addressed when planning for what happens after you pass in terms of family law.
Why Digital Assets Matter in Estate Planning
You might be wondering why digital assets require special attention. After all, isn’t a bank account just a bank account, whether it’s accessed online or in person? In many cases, digital assets require different handling because of access restrictions, security concerns, and privacy laws.
Here’s why it’s important to plan for digital assets:
Access limitations: Without usernames and passwords, loved ones may not be able to get into your accounts.
Privacy laws: Laws like the Stored Communications Act restrict access to digital content, even for family members.
Terms of service agreements: Some platforms don’t allow account transfers or post-death access.
Potential for loss: Digital assets can be lost forever if no one knows they exist or how to access them.
Identity theft prevention: Accounts left unmanaged after death can be vulnerable to hacking or fraud.
When digital assets aren’t included in estate plans, they can become locked away or even disappear completely. The emotional toll of lost family photos or the financial cost of inaccessible cryptocurrency can be significant.
Start By Taking Inventory
Once you understand what digital assets are and why they matter in family law, the next step is taking stock of what you own. This part may take a little time, but it lays the groundwork for everything that follows.
Things to Include in Your Digital Inventory:
A list of all digital accounts: Include both personal and business accounts
Usernames and passwords: Keep these secure and updated regularly
Location of digital files: Cloud storage services, external hard drives, etc.
Ownership information: For domains, online businesses, or digital media
Financial value: Estimate value for assets like cryptocurrency or online stores
Sentimental value: Identify items like family videos or photo albums
This inventory should be reviewed regularly and stored in a safe location. You might use a password manager, secure digital vault, or keep a physical copy in a locked cabinet.
Assigning a Digital Executor
Now that you have a clear picture of your digital footprint, it’s time to think about who will handle these assets after you're gone. According to family law, this person is sometimes called a "digital executor," though the role isn’t recognized in every state.
In Louisiana, while not a formal title under state law, a trusted person can still be designated in your will or trust documents to handle digital matters.
When picking someone for this role, look for someone who:
Is comfortable with technology
Can be trusted with sensitive information
Is organized and detail-oriented
Understands your personal wishes and values
This person doesn’t have to be the same as your primary executor, though they can be. Just make sure to discuss this role with them in advance and include instructions in your estate documents.
Updating Legal Documents to Include Digital Assets
Even the greatest list of digital assets won't help much if your legal documents don't cover them. Including specific language in your estate plan can give your executor the authority they need to access and manage your digital property.
Ways to Include Digital Assets in Your Legal Documents:
Wills and trusts: Add clear instructions on how you want your digital assets handled.
Powers of attorney: Grant digital access to your chosen agent if you become incapacitated.
Letters of instruction: While not legally binding, these can provide guidance on handling your online accounts.
Separate digital asset authorization forms: Some services (like Google’s Inactive Account Manager or Facebook’s Legacy Contact) allow you to specify what happens to your account.
Work with an estate planning attorney who understands digital property and can help you use the right legal tools to document your wishes.
Using Tools to Manage and Protect Digital Assets
Just like you'd use a safe deposit box for important papers, digital assets benefit from tools that add organization and security.
Helpful Tools and Strategies Include:
Password managers: Tools like LastPass or 1Password keep your login details secure and accessible.
Digital vaults: Services that store sensitive information and documents in an encrypted space.
Cloud-based estate planning platforms: Some online services are designed to help manage digital estate plans.
Two-factor authentication: Adds an extra layer of protection for accounts with high value.
Regular backups: Make sure important files and media are stored in more than one place.
These tools not only help with access but also keep your digital footprint from becoming a burden to your loved ones later.
Planning for Business-Related Digital Assets
In family law, if you own a business that operates online or relies heavily on digital systems, your estate plan should also include plans for those assets. Failing to address these can create confusion or loss of revenue for your heirs.
Key Digital Business Assets to Plan For:
Websites and domain names
E-commerce platforms and login credentials
Client databases and contact lists
Online marketing accounts (Like Google Ads or Facebook Ads)
Payment processors (Stripe, PayPal, etc.)
Cloud-based software licenses
Make sure to clarify who will inherit or manage your digital business, and provide any necessary transition instructions. This could mean naming a successor, giving access to partners, or outlining steps for selling or closing the business.
Transitioning From Digital Asset Inventory to Legal Implementation
Now that you've inventoried your digital property, chosen someone to manage it, and secured your accounts, the next step is formalizing everything. This is where your attorney plays a key role. Legal implementation turns your intentions into something your heirs can act on.
When you meet with your estate planning attorney, come prepared with:
Your digital asset inventory
Names of people you want to designate for digital responsibilities
Any tools or services you’re already using
Specific concerns about online property or business accounts
A good estate plan doesn’t just name heirs. It tells them how to take care of what you’ve built—both online and off.
Keeping Your Plan Updated
Technology moves fast, and so does life. A digital estate plan that made sense five years ago may already be outdated. That’s why it’s a good idea to revisit your plan regularly.
Here are a few signs it might be time for an update:
You opened new digital accounts
You bought or sold cryptocurrency
You started a new online business
Your digital executor is no longer available
New tools or services became available
Treat your digital plan like any part of your estate documents—something you check in on every couple of years or after big life changes.
Call Us Today
Digital assets are a growing part of everyday life, and they warrant a place in every estate plan. Our estate planning attorney at The Law Office of Ivy L. Graham in Livingston, Louisiana, serves many communities in the area, including Denham Springs, Livingston, Holden, Colyell, and Albany. Contact us today to start incorporating your digital assets into your estate plan.