Estate planning today goes far beyond real estate and traditional investments. It must also account for a person’s online life. Cryptocurrencies, NFTs, and social media accounts can hold both financial and emotional value. Without proper planning, these assets can easily be lost or mishandled. This article explains how digital assets fit into a modern estate plan and what steps clients can take to make sure their online legacy is protected.
Why Digital Assets Matter
Digital assets are no longer niche investments. Cryptocurrency portfolios, NFT collections, and even monetized social-media accounts are now part of everyday wealth. Online data such as cloud storage, email, and domain names can also have lasting value.
If no one knows how to access these accounts or private keys, the assets may be lost forever. Clear documentation and planning help avoid that outcome.
Estate planning for digital assets is still a developing area of law, so including specific instructions in your plan is essential.
Key Areas to Address in a Digital Estate Plan
1. Crypto Wallets and Private Keys
- Identify whether your cryptocurrency is held on an exchange (custodial) or in a personal wallet (non-custodial).
- Keep an inventory of wallet details and secure recovery phrases.
- Record where private keys are stored and how to access them.
- Make sure this information is accessible only to trusted people, as losing private keys means losing the funds permanently.
2. NFTs and Blockchain-Based Assets
- NFTs should be listed in your estate plan just like physical property.
- Include transfer instructions and clarify who inherits related rights or royalties.
- Confirm that the digital files linked to NFTs are still accessible and stored safely.
3. Social Media and Cloud Accounts
- Your digital footprint extends beyond finances. Decide how you want personal accounts handled.
- Create a list of your major platforms: social media, email, domain names, and cloud storage.
- Indicate whether each should be deleted, memorialized, or transferred.
- Consider naming a digital executor to carry out your wishes and manage these accounts legally.
4. Integrating Digital Assets Into Estate Documents
Your will or trust should reference digital assets directly. A digital asset memorandum can safely outline access information and management instructions without making them public.
Working with a legal advisor ensures your plan aligns with evolving laws on digital inheritance and taxation. Learn more here.
Practical Steps to Take Now
- Create a digital-asset inventory: List all wallets, logins, and online accounts.
- Secure and update it: Technology changes quickly, so review this list often.
- Appoint a knowledgeable fiduciary: Choose someone comfortable with technology or ensure they can access expert help.
- Include clear legal instructions: Your will or trust should address crypto, NFTs, and social accounts directly.
- Protect sensitive data: Keep private keys and passwords in secure, encrypted storage. Do not include this data in your will.
- Plan for recovery: Include instructions for what to do if accounts become inaccessible.
- Communicate with trusted people: Make sure someone knows that these assets exist and where to find information when needed.
Common Questions
Can crypto and NFTs be included in a will?
Should I include private keys in my will?
What happens if no one can access my wallet?
Do social-media accounts belong in an estate plan?
Where should I store my digital-asset inventory?
How often should I review my plan?
Protecting Your Digital Legacy
Digital assets are part of modern life, and they deserve the same level of care as physical property. A clear, up-to-date plan helps protect these assets and ensures they’re managed according to your wishes. To include your digital life in your estate plan, contact Sunny Tathgar for professional guidance.
