In today’s digital world, your estate includes far more than just real estate, bank accounts, and investment portfolios. Increasingly, individuals hold significant value in digital assets — and failing to plan for them can create serious complications for your loved ones.
The short answer is: Yes, you absolutely should include digital assets in your estate plan.
What Are Digital Assets?
Digital assets can include:
- Cryptocurrency (Bitcoin, Ethereum, etc.)
- Online bank accounts
- PayPal or Venmo balances
- Investment platforms
- Email accounts
- Social media accounts
- Digital photos and cloud storage
- Subscription or monetized online accounts
Many of these assets have financial value. Others have personal or sentimental value. Both deserve planning.
Why Digital Assets Are Often Overlooked
Unlike traditional assets, digital accounts are protected by passwords, authentication systems, and encryption. For example:
- Cryptocurrency is typically stored in a digital wallet or exchange
- Access requires private keys, passwords, or authentication credentials
- Without proper instructions, these assets may be permanently inaccessible
Even accounts like PayPal, Venmo, or online banking platforms require specific authorization before access can be granted.
Without planning, your Executor or Agent may know the account exists but have no way to access it.
How to Properly Include Digital Assets in Your Estate Plan
Effective estate planning for digital assets typically involves:
Including Proper Legal Authorization
Your Will and Power of Attorney should contain specific clauses granting authority to access digital accounts.
Creating a Separate Digital Asset Inventory
We strongly encourage clients to create a separate document listing:
- The accounts you own
- Where they are held
- Login credentials (or secure instructions for access)
- Recovery procedures
For security reasons, this document should not be embedded directly in your Will, but your Executor should know where to find it and how to access it.
Why This Matters
We live in a highly digitalized world. Without careful planning, valuable assets can be:
- Forgotten
- Inaccessible
- Lost permanently
Including digital assets in your estate plan ensures your Executor can properly administer your estate and your loved ones receive what you intended.
Protect Your Digital Legacy
Estate planning is about more than physical assets. It’s about ensuring every part of your financial and personal legacy is protected.
If you have any questions about the topic discussed in this article, or any estate law matter, please give us a call at Bononi & Company 724-832-2499.