Most people think estate planning only covers physical property like homes and vehicles. But the truth is, a large part of your property exists online. Email accounts, social media profiles, cloud storage, cryptocurrency wallets, online businesses, digital photos, and subscription platforms form part of your assets, as they may contain sensitive personal and financial information. If you don’t have an estate plan, your loved ones may not benefit from these assets after your passing.
How State and Federal Laws Affect Digital Asset Access
Accessing digital accounts after someone passes away is not always straightforward. Even close family members may face restrictions. For instance, most tech companies have privacy policies and user agreements that limit account access unless the owner gave permission before death.
Moreover, several states in the country have adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA). The law allows estate executors, trustees, guardians, and agents under a power of attorney to manage certain digital assets if they have legal authority. However, the account owner’s instructions usually take priority. For example, if someone used an online tool provided by a platform to name a legacy contact, that instruction may override directions written in a will.
Federal privacy laws also affect access to online accounts. The Stored Communications Act limits unauthorized access to electronic communications, which means service providers may deny access without proper documentation or consent from the deceased user.
Who Legally Controls Your Digital Accounts After You Pass Away?
Control over digital assets usually depends on the estate plan and applicable laws. If you have a valid will or trust, the executor or trustee named in those documents often handles your digital property alongside your other assets. You may also appoint a digital executor to manage online accounts and electronic records.
But as mentioned above, Tech companies may still place limits on what can be accessed. They may require additional proof of authority before access is granted, which means family members may encounter delays and court involvement. This is common with password-protected accounts, encrypted files, and cryptocurrency wallets, where access credentials are missing.
Steps You Can Take Now to Protect Your Digital Assets
One of the most important steps is creating an inventory of your digital assets. This list should include important accounts, usernames, recovery information, and details about where digital files or financial assets are stored.
You should also include digital asset instructions in your estate planning documents. A will, trust, or power of attorney can grant specific individuals authority to manage online accounts and digital property when necessary. It is equally important to review the legacy settings offered by your online platform. These tools allow you to decide what happens to your accounts after death.
Finally, consider working with our estate planning attorneys to help you understand digital asset laws. Since online assets can be lost easily or access denied after your demise, having a legal plan in place can help protect important accounts and preserve valuable information. Our team at Michael F. Kanzer & Associates will ensure your digital assets are managed according to your wishes, avoiding unnecessary stress for your loved ones. Book your free consultation today.