Most people think about protecting their home, car or financial accounts when making an estate plan. But there’s another important piece many people forget—your digital assets. Typically, online accounts stay active until a loved one notifies the platform or company to close an account due to inactivity.

In some cases, you can use specific tools or account settings to help manage your digital assets and account preferences. Another option is to include it in your estate planning. Here’s what you can do to protect your digital assets.

 

What are Digital Assets?

Your digital assets include online accounts, files, photos, subscriptions and financial tools you use online every day. Digital assets can be electronically stored on a phone, computer, server or other device. These digital accounts may hold valuable information, personal memories, and in some cases, real financial value.

 

What Happens to Your Digital Assets if Something Happens to You?

What happens to your digital assets if something happens to you depends on whether you’ve planned ahead. Without a clear plan or instructions, your loved ones may have trouble accessing your online accounts or knowing what to do with them.

According to Truist, in some cases, a fiduciary (a person or organization who is legally bound to act in your best interest) may only have access if you gave permission in legal documents or through the account’s own settings. That’s why having a plan for your digital assets is so important.

 

How to get started

Getting started doesn’t have to be complicated. Begin by making a list of all your digital assets. This could include the following things.

• Email accounts
• Social media profiles
• Online banking
• Bill pay accounts
• Cloud storage and photo libraries
• Subscription services
• Investment or retirement apps
• Crypto wallets and digital payment accounts

Then decide who should handle each account and what you want done with it. A password manager can also help keep your information organized and secure.

 

Mange Your Online Accounts

Some online platforms have their own rules for account access after someone passes away. In some cases, you can assign a specific person or provide specific instructions for who can have account access. Others may require legal authorization before anyone can step in. Legal documentation, like a death certificate, is often required to delete an account or give someone access after your passing.

 

Add Digital Assets into Your Estate Plan

Determine how you want your digital assets managed in your will or trust. You can include the following things.

• A list of your digital accounts
• Instructions for how each account should be handled
• Contact information for the person you trust to manage them
• Secure storage of login details or access instructions
• Guidance for preserving photos, closing accounts or transferring important information

For example, you may want someone to save family photos, cancel subscriptions or manage an online account tied to your finances. You may also want certain accounts kept private. Including digital asset instructions in your estate plan helps remove uncertainty and makes things easier for the person(s) handling your affairs.

 

Know Your State Laws about Digital Assets

It’s also important to know that laws about digital assets can vary by state. In many cases, the legal authority given in your will, trust or power of attorney can affect whether someone can access your accounts. That means your digital asset plan should work alongside your overall estate plan.

According to Baker Law Group, Colorado law allows individuals to appoint a digital executor to manage online accounts and digital property. This will help ensure your online accounts get handled as you wish.

Colorado, like most U.S. states, uses the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which gives, fiduciaries, like executors, trustees and power of attorneys, the legal authority to access, control and delete someone’s digital assets after death or incapacitation. Before this act was in place, a lot of families were locked out of family member’s digital accounts. It’s best to consult with a local estate planning attorney to make sure your digital assets are protected correctly.

Thinking ahead about your digital assets is a simple way to protect your family, reduce stress and make sure your wishes are followed. If something happens to you, your digital assets do not disappear on their own. A digital asset plan aligned with your estate plan can help protect your online life, preserve important memories and give your loved ones clear direction when they need it most.

As a Partner Colorado member, you can take advantage of our estate planning services.^* You can create your own will or trust to ensure your wishes are honored.


*The use of any product and/or service is not intended to be a substitution for the advice of an attorney. We are not a law firm nor attorneys. With that said, no legal advice will be provided. Estate planning is an important step, and we’re here to make the process simple and accessible. While we provide tools to help you create an estate plan, we are not a law firm and do not offer legal advice. Estate planning services are provided by Legal Karma. Legal Karma is not a legal services provider. Using our service is not a substitute for a lawyer and does not create an attorney-client relationship. If you have complex legal questions or need personalized advice, we encourage you to consult a licensed attorney.