In today’s world, your digital footprint is just as important as your physical assets. From cryptocurrency investments to social media accounts, your online presence represents financial and sentimental value.
Yet many New Yorkers overlook these assets when creating estate plans. Without proper planning, your digital life could become inaccessible to loved ones, creating unnecessary stress during an already difficult time.
What counts as a digital asset?
Your digital footprint is larger than you might realize. Before creating your plan, understand what needs protection, including:
- Smartphones, computers and tablets
- Email and social media accounts
- Financial accounts with online access
- Subscription services (Netflix, Spotify, etc.)
- Cryptocurrency and NFTs
- Digital photos and documents
- Websites and domain names
- Online businesses or stores
Every account with a password represents a potential roadblock for your executor if not properly documented.
Create a digital inventory now
The first step in protecting your digital assets is knowing what you have. Here’s a checklist for creating a comprehensive inventory:
- List all devices and their access codes
- Document email and social media accounts with usernames and passwords
- Identify financial accounts with online access
- Note subscription services and automatic payments
- Record cryptocurrency wallet information and access methods
- Catalog cloud storage accounts containing important files
Update your inventory regularly as it becomes your survivors’ roadmap.
Legal protection for digital assets
New York has adopted the Uniform Fiduciary Access to Digital Assets Act, which grants access to computer files, web domains and cryptocurrency. But it doesn’t automatically allow your executor to access everything. Federal law prohibits access to email, text messages and social media without express permission in your estate documents.
Consider using “legacy contact” features on platforms like Facebook, Instagram and Apple accounts to designate who can manage them after your death.
Cryptocurrency considerations
Crypto assets present unique challenges in estate planning due to their security features. Here are vital considerations if your estate contains these assets:
- Include instructions for accessing wallets and exchanges
- Consider a “dead man’s switch” or multi-signature wallet
- Document the location of hardware wallets or recovery phrases
- Explain the process for transferring assets to beneficiaries
These precautions are essential since cryptocurrency can be permanently lost without proper access to information.
Protecting your digital privacy
You may want some digital information to remain private even after death. Your estate plan should address which accounts to close permanently, identify personal communications that remain private and create instructions for deleting sensitive information. Consider separating personal and financial digital assets to balance privacy concerns with practical needs.
Skilled guidance from an estate planning attorney familiar with digital asset management can help ensure your online life is handled according to your wishes while providing your loved ones the access they need during a difficult time.