You probably have more digital assets than you realize. From the photos on your phone to the online banking credentials you use every day, your life is tied to digital platforms in ways that often go overlooked during estate planning.
When you’re thinking about what you’ll leave behind, your focus might go straight to real estate, investment accounts, or life insurance policies. But what about the online accounts and data that also hold personal, financial, or even sentimental value?
Digital assets present unique challenges when it comes to management and access. If you haven’t addressed them in your estate plan yet, this is the right time to start.
What Counts as a Digital Asset?
A digital asset includes any record, file, or account stored or accessed electronically. Some assets have direct financial value, while others may carry personal or emotional significance. Examples include:
- Online banking and brokerage accounts
- Cryptocurrency wallets and private keys
- Email accounts
- Cloud storage (such as Google Drive, Dropbox, or iCloud)
- Social media profiles
- Digital photo and video libraries
- Online business accounts, such as Etsy or Shopify
- Loyalty programs and airline miles
- Domain names and blogs
According to a 2023 Pew Research Center survey, 97% of Americans use the internet. Furthermore, nearly one-third of adults use two-factor authentication, which can create added access hurdles for loved ones.
If no one has your login credentials or authority to act on your behalf, your digital assets could be locked indefinitely.
What Happens If You Don’t Plan for Digital Assets?
Without clear instructions in your estate plan, digital assets can easily fall through the cracks. Even if someone has your passwords, most companies prohibit unauthorized access under their terms of service.
In fact, federal laws such as the Stored Communications Act and the Computer Fraud and Abuse Act may make it illegal to access someone’s account without specific legal authority.
This means your executor or agent may run into roadblocks when trying to access your data. Important financial information could be missed. Sentimental items, like family photos or personal writings stored in the cloud, could be lost permanently.
How New York Law Addresses Digital Assets
New York adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) in 2016. This law gives fiduciaries, such as executors or trustees, the right to manage digital assets under certain conditions.
However, the law also respects the privacy settings you choose when setting up accounts.
Under RUFADAA, the level of access a fiduciary receives depends on:
- The instructions you provide through an online tool, such as a Facebook or Google legacy contact feature
- Your directions in legal documents, such as your will or power of attorney
- The terms of service agreements set by each company
If you want to give someone access to your digital accounts, it is not enough to hand them a list of passwords. You need to name them in your estate plan and clearly authorize access.
What You Can Do Now
To protect your digital assets, start by taking a few proactive steps.
First, take inventory of your accounts. Make a list of everything you use regularly, from banking apps and email to streaming services and subscription platforms. Don’t forget about online storage, domain registrations, or any cryptocurrency you hold.
Next, decide who should manage these assets. In your will, trust, or power of attorney, you can name a digital fiduciary—someone you trust to handle your online presence and data. This role may or may not be the same person as your executor.
Then, provide clear instructions. If you want certain accounts deleted, transferred, or preserved, put that in writing.
Keep this information in a secure but accessible place, and make sure the right person knows how to find it. Avoid including passwords in your will, which becomes a public document once filed with the court.
Finally, consider using password managers or legacy contact tools offered by major platforms. Apple, Google, Facebook, and others allow you to designate someone to manage your account if you pass away.
These settings often take precedence over instructions in your estate plan, so be sure they align.
Digital Assets Are Part of the Bigger Picture
Your digital life is tied to your identity, your finances, and your legacy. Ignoring it in your estate plan can leave gaps that create confusion or loss for the people handling your affairs. As these assets grow in both number and value, planning for them is no longer optional.
A licensed estate planning attorney can help you incorporate digital assets into your broader plan and make sure your documents reflect current New York law. Whether you are drafting a new plan or updating an old one, addressing this area shows foresight and protects the people who will one day have to manage the details.
Start by asking yourself what you’d want someone to know if they had to access your accounts tomorrow. From there, you can take the steps needed to safeguard your digital legacy with clarity and intention.
Learn More About Estate Planning!
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