Estate Planning for Digital Assets: Protecting Your Online Legacy
July 21, 2025
More and more of our lives are stored online—from email accounts and social media profiles to cryptocurrency wallets and cloud-based photo libraries. Yet when people think about estate planning, they often overlook these digital assets. For those in Houston, Texas, working with an experienced estate planning attorney is essential.
At the Law Office of Keith D. Peterson, CPA, J.D., I help clients develop comprehensive estate plans that address both traditional and digital assets. Including your digital presence in your estate plan can help avoid legal hurdles, reduce emotional stress on your family, and preserve your online life according to your wishes. Let’s explore digital assets and how to plan for them effectively.
What Counts as a Digital Asset?
Digital assets include any form of content or data that’s stored or managed electronically. These assets can have financial, sentimental, or practical value and may require different types of access or instructions depending on their nature.
Email accounts: Contain communication history, personal data, and important documents.
Social media profiles: Facebook, Instagram, LinkedIn, and others that hold photos, memories, and networks.
Financial accounts: Online banking, PayPal, Venmo, investment platforms, and cryptocurrency wallets.
Cloud storage services: Google Drive, Dropbox, and iCloud, which may store photos, work files, or personal documents.
Subscription accounts: Netflix, Amazon, and other paid services that might contain recurring charges.
Domain names and websites: Valuable intellectual property or business assets.
Digital files: Photos, videos, music, manuscripts, or other creative works saved on a computer or cloud service.
Identifying what you own digitally is the first step in creating a digital estate plan. Once you have a list, you can begin assigning access and instructions for each asset.
Why Digital Assets Need Special Planning
Unlike physical assets, digital assets come with unique challenges. Many are password-protected, and others are governed by strict user agreements or privacy laws. Failing to plan for them can create serious issues after death.
Access restrictions: Family members may not be able to log in to your accounts due to password protections or legal barriers.
Loss of value: Cryptocurrency and online businesses can lose significant value if not managed quickly and correctly.
Ongoing costs: Subscriptions and hosting services may continue to charge your accounts if no one cancels them.
Emotional impact: Loved ones may be left without access to treasured memories like photos, messages, or personal videos.
A skilled estate planning attorney can help you avoid these issues by preparing clear legal documentation and guiding you through each step of the process.
How to Start Planning for Digital Assets
Creating a digital estate plan doesn’t have to be difficult, but it does require thoughtful preparation. Here are some key steps to get started:
Take inventory: List all your digital assets, including account names, platforms, and their value or purpose.
Document access information: Keep a secure, up-to-date list of usernames, passwords, and security questions.
Decide what should happen: Consider whether each asset should be deleted, archived, or passed on to someone else.
Choose a digital executor: This person will manage your digital assets according to your wishes.
It’s important to store this information securely, either in a password manager with emergency access or in a physical document kept in a safe place. Working with an estate planning attorney helps you incorporate this information into your broader estate plan.
What Is a Digital Executor?
A digital executor is a trusted person you assign to manage your digital assets after your death. While Texas law doesn’t formally recognize a digital executor, you can still name one in your will or legal documents to clarify your intentions.
Manages online accounts: Deactivates or transfers control of accounts like email and social media.
Accesses and distributes files: Shares digital documents, photos, or creative work with heirs or others as directed.
Handles financial platforms: Settles balances or closes accounts on payment and investment apps.
Stops ongoing charges: Cancels subscriptions or services to avoid unnecessary costs.
It’s wise to choose someone tech-savvy who understands the importance of privacy and data security. Your estate planning attorney can help create legally binding documents that authorize this person to act on your behalf.
Privacy Laws and Terms of Service Restrictions
Even if you list your wishes and assign a digital executor, access to your digital assets can still be blocked by privacy laws and user agreements. Many online platforms prohibit sharing passwords or transferring account ownership, even after death.
Terms of service agreements: These contracts often limit account access to the original user only.
Federal privacy laws: The Stored Communications Act and the Computer Fraud and Abuse Act restrict unauthorized access to electronic data.
Platform-specific tools: Some services, like Facebook’s Legacy Contact or Google’s Inactive Account Manager, allow limited planning.
To avoid issues, your estate plan should include clear legal authority, such as written consent, for your chosen representative to access and manage your accounts. An estate planning attorney can draft language that respects both your wishes and applicable laws.
Incorporating Digital Assets Into Your Will and Trust
Digital assets should be included in your broader estate planning documents. That includes your will, any trusts you’ve created, and related powers of attorney. Here’s how to address them:
Wills: Include language giving your executor the authority to access and manage digital assets. Be careful not to include passwords directly in your will, since it becomes public record.
Trusts: If you use a revocable living trust, you can transfer ownership of certain digital property to the trust and assign a trustee to manage them.
Powers of attorney: Grant authority to an agent to handle digital matters if you're incapacitated.
Every situation is different, so your estate planning attorney can tailor your documents based on your personal goals and the nature of your digital property.
Protecting Business-Related Digital Assets
If you own a business or generate income through digital platforms, these assets need even more careful planning. Mishandling them could affect business continuity, customer relationships, or intellectual property rights.
Domain names and hosting accounts: Register them in your business name or trust to make them easier to transfer.
Online storefronts: Include login credentials and instructions for accounts like Shopify, Etsy, or Amazon.
Social media marketing accounts: These accounts may be essential to maintaining brand identity or client communication.
Digital products or content: Identify ownership and create a succession plan to transfer copyrights or royalties.
Working with an estate planning attorney who understands both digital and business planning helps make sure these assets continue working for your beneficiaries or successors.
Tools and Resources for Managing Digital Assets
Several tools can help you manage digital assets while you're alive and prepare them for transfer after death. Here are a few to consider:
Password managers: Tools like LastPass, 1Password, or Dashlane allow you to store and share login credentials securely.
Legacy planning tools: Platforms like Facebook and Google offer settings to designate someone to manage your account after death.
Digital asset spreadsheets: Keeping a regularly updated document (stored securely) can serve as a master reference.
Secure file storage: Encrypted cloud storage with shared access can help you store sensitive documents or digital copies of legal paperwork.
Just like you plan for bank accounts or real estate, keeping digital assets organized and accessible can spare your loved ones from added stress. Your estate planning attorney can guide you in choosing the tools for your situation.
Updating Your Digital Estate Plan Over Time
Digital assets change frequently. New accounts are created, passwords are updated, and platforms evolve. That’s why it’s important to treat your digital estate plan as a living document and update it regularly.
Review your list of accounts annually: Add new platforms and remove any you no longer use.
Check that your digital executor is still willing and able to serve: Update their contact information if necessary.
Confirm access to key tools: Make sure emergency access features or shared accounts still work as intended.
Schedule periodic reviews with your estate planning attorney: Revisit your overall plan to make adjustments as laws or your wishes change.
This ongoing attention helps keep your plan effective and aligned with your current digital footprint.
Contact the Law Office of Keith D. Peterson, CPA, J.D. Today
Digital assets are a growing part of our lives, and they need as much attention as physical property in your estate plan. With the help of an experienced estate planning attorney, I can help you build a personalized plan that meets your needs and keeps pace with the changing digital age. If you're located in Houston, Harris County or Northwest Houston, contact the Law Office of Keith D. Peterson, CPA, J.D today.