Cover Your Digital Assets in Estate Planning

It’s hard to go a day without touching something digital, from sending an email to managing bank accounts online. Most people don’t think twice about how much of their life lives behind screens and passwords. But when it comes to estate planning, digital assets are often left out. That can be a big mistake. If something happens and no one has legal access or clear guidance on your digital footprint, things can get messy fast.

Estate planning isn’t just about houses and bank accounts anymore. A good plan takes your online presence into account too. Social media profiles, cryptocurrency, blogs, cloud storage, and online business tools are all part of your digital assets. The question is, does your plan make a place for those? If it doesn’t, you’re leaving a gap that could cause confusion or even losses for your loved ones. Let’s break down why digital assets matter and how to include them in your will and estate planning process.

What Are Digital Assets?

Digital assets are anything you own or use online that has value or requires control. That could mean a wide range of things beyond just money or finances. It includes entertainment accounts, social media profiles, email inboxes, online stores, and even files stored on cloud services.

Here are some examples of digital assets:

– Email accounts (like Gmail or Outlook)

– Social media accounts (such as X, Instagram, Facebook)

– Online banking and investment accounts

– Cryptocurrency wallets

– Domain names and websites

– Online businesses or shops

– Photos, videos, or files stored in cloud drives like Google Drive or Dropbox

– Subscription services with recurring charges

You might be surprised how many of these you use on a daily basis. Let’s say you run an online shop and keep inventory and order history in a private system. If you don’t include that information in your estate planning, your family may not know how to access or manage business matters when you’re gone.

Unlike physical bank accounts or property, digital accounts are protected by passwords and privacy laws. Those protections don’t go away just because someone passes. Without the right language in a will or trust, your family may face roadblocks when trying to access or close accounts.

That’s why it’s smart to gather a complete list of what you own or manage online. Getting clear on your digital life is the first step toward stronger planning.

Legal Considerations For Digital Assets In Estate Planning

Digital assets can’t just be handed over by guessing a password or logging in. There are laws in place that make it harder than that, especially in Illinois. Every state, including Illinois, has its own take, but overall, privacy laws and user agreements tend to give companies control over what happens to your online info.

Here’s what someone might face when trying to access your digital assets without proper planning:

– Password protection

– Two-factor authentication

– Terms of service that prohibit sharing login details

– Federal privacy laws, like the Stored Communications Act, that limit data access

To work through this, it’s smart to include digital instructions in your will or living trust. But don’t just throw in a password list and call it a day. Instead, make sure:

– You clearly say who has the right to access what

– You give legal authorization in your estate documents

– That person is named and prepared to manage those accounts

Without these steps, your executor could be left spinning their wheels. Even if they mean well, tech companies aren’t likely to provide access unless the law backs it up. Having your digital life formally written into your estate plan helps take away stress down the line.

Not everything needs access, though. Some things can be left alone or deleted, while others need to be transferred, closed, or protected. That’s why you’ll want to create a plan that’s specific about what should happen and who’s in charge. Taking this step gives you peace of mind and helps your family know what to do instead of guessing what you would’ve wanted.

Steps To Include Digital Assets In Your Estate Plan

Planning for digital assets isn’t just about being organized. It’s about helping the people you care about avoid confusion and delays when something happens. If you pass away or become unable to manage your affairs, your family will need clear directions about your online life. Including these assets in your estate plan means fewer obstacles for them and better protection for your information.

Here’s how to get started:

1. Make a complete list – Write down every digital asset you can think of. Include accounts tied to money, like bank apps or cryptocurrency wallets, personal items like cloud photo albums, and any online services that you use.

2. Record login details in a secure way – Don’t put your passwords in your will, but do make sure your executor can access what they need. Use a password manager or a printed document secured in a safe place.

3. Name a digital executor – This can be the same person as your regular executor or someone else. Just make sure you name them clearly in your legal documents. They’ll be in charge of accessing and managing your digital accounts.

4. Include digital instructions – Your will or trust should give written permission and spell out how you want things handled. Mention what should be closed, transferred, deleted, or saved.

5. Check Chicago rules – Because estate law is different from state to state, make sure your plan lines up with Illinois laws. For example, Illinois follows the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which helps define how and when someone can access digital accounts after death.

Taking these steps makes life easier for the people you leave behind. It also gives you more control over how your digital life is managed once you’re gone.

Keeping Your Digital Estate Plan Up-To-Date

Technology changes. So do the websites, platforms, and services we use. That’s why a digital estate plan can’t just sit on a shelf once it’s done. Revisiting it every year or any time you update your plan is a good habit. If you add new accounts, start a side business, or shift things around between passwords, your plan should reflect those changes.

Here are a few ways to keep things fresh and current:

– Review your account list every year. Add or remove platforms that no longer apply.

– Make it easy but secure for your digital executor to get the access they need.

– Refresh logins in your password manager or secure file so they don’t get outdated or lost.

– Update your legal documents when major platforms change rules about data ownership or access rights.

For example, let’s say you just started investing in cryptocurrency. That’s something your previous estate plan might not cover well, especially if no one in your family understands how to access your digital wallet. Updating the plan to name someone who does and giving them permission through your will or trust helps avoid big headaches.

Digital estate planning is not a one-and-done task. Just like your home or savings account, you want everything as clean and clear as possible. What works now might not work five years from now, and laws in Chicago can evolve too. Think of it as spring cleaning for your digital records. Simple, regular maintenance goes a long way.

Securing Your Digital Legacy

Digital assets are part of everyday life now, and they should be part of every estate plan. When you put thought into these accounts, files, and online tools, you make things easier for the people you care about. They’re not left guessing what you wanted or feeling stuck trying to get into a locked account. Instead, they’ll have the authority and access they need to wrap things up and honor your wishes.

Taking action now means less stress later. It protects the effort you’ve put into your online life and helps your legacy live on the way you intend. Whether it’s photos, passwords, business accounts, or simple subscriptions, every piece plays a role. By putting your digital assets in your will and making sure they’re backed by the right legal documents, you’re giving your future a stable foundation.

The earlier you tackle this, the better off things will be for you and the people counting on you. A well-rounded digital estate plan isn’t just about preparation. It’s about peace of mind.

To ensure your digital assets are safeguarded and your wishes are honored, it’s important to include them in your will and estate planning. Marshiano Law Group in Chicago is ready to help you make thoughtful choices and craft a complete plan that includes your online presence. Let’s work together to protect your legacy and give your loved ones peace of mind.