Digital Assets and Estate Planning

In an increasingly digital world, our online presence and digital assets have become forgettable yet important parts of our lives. From cryptocurrency and social media accounts to cloud storage and subscription services, digital assets often hold significant financial and sentimental value. Yet, many estate plans overlook these components during their creations, leaving loved ones with unnecessary challenges when the time arises.

What Are Digital Assets?

Digital assets encompass a broad range of online and electronic property. These can include:

• Cryptocurrency: Bitcoin, Ethereum, and other digital currencies stored in wallets or exchanges.
• Social Media Accounts: Platforms like Facebook, Instagram, LinkedIn, and TikTok. Any platform leaves a digital footprint.
• Cloud Storage: Documents, photos, and videos stored on platforms like Google Drive, iCloud, or Dropbox.
• Online Banking and Investment Accounts: Including PayPal, Venmo, and stock trading accounts.
• Email Accounts: Personal or business correspondence stored on Gmail, Yahoo, or similar platforms.
• Subscriptions and Loyalty Points: Streaming services, eBooks, airline miles, and other rewards programs.
• Intellectual Property: Digital art, blogs, online shops, or other content with potential revenue streams.

Why Digital Investments Need Special Attention

Unlike physical property, accessing digital assets can be legally complex. Many online platforms have strict terms of service agreements that limit who can access an account, even after the owner’s death. Without clear instructions, family members or executors may face legal hurdles due to privacy laws or terms of service restrictions. They can also lose access to any money attached to the deceased’s accounts such as crypto or online banking accounts.

However, it’s not just about online money. Without the rights to email access, family members and friends can lose access to sentimental items or personal information from online photos, documents, or messages. Most companies have the right to not give over that personal login information if you do not already have access.

Steps to Include Online Assets in Your Estate Plan

1. Create a Comprehensive Inventory: Begin by listing all your digital assets, including account credentials, URLs, and descriptions of what they contain. This inventory will serve as a roadmap for your executor. The most important step: PRINT IT OUT! An online inventory means nothing if they cannot access it.
2. Specify Access and Permissions: Many states, like South Carolina, have enacted laws like the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which allows individuals to grant access to digital assets through legal documents. You can work with one of our attorneys at Grand Strand Law Group to include these permissions in your will or trust.
3. Designate a Digital Executor: Consider appointing a specific person to manage your digital assets. This individual should be tech-savvy and trustworthy, as they may handle sensitive information. This also does not have to be the same executor as your main estate.
4. Use Online Platform Tools: Some platforms offer tools to manage account access after death. For instance:
   • Google’s Inactive Account Manager lets you specify what happens to your Google account.
   • Facebook’s Legacy Contact allows someone to memorialize or delete your account.
5. Store Credentials Securely: Use a secure method, such as a password manager, to store and share account credentials. Avoid including passwords directly in your will, as it becomes a public document during probate.
6. Update Your Estate Plan Regularly: As technology evolves, your digital footprint will grow. Regularly update your estate plan to include new accounts or changes to existing ones. The new year is the perfect place to start!

Protecting Cryptocurrency

Cryptocurrency poses unique challenges due to its decentralized nature. Unlike traditional financial accounts, there is no institution to contact for access. Ensure your estate plan includes:

• Wallet keys or recovery phrases.
• Detailed instructions for transferring or liquidating cryptocurrency assets.
• A trusted individual or executor knowledgeable about cryptocurrency.

Secure Your Digital Property with Grand Strand Law Group

Don’t let your digital assets fall into legal limbo. Contact Grand Strand Law Group today to schedule a consultation and take the first step toward safeguarding your digital and physical legacy in 2025. We are here to make sure you understand the importance of estate planning and protecting your digital assets. We work to make the process as smooth as possible. Give us a call at 843.492.5422. Learn about how we can help with estate planning now or in the future.