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When most people think about estate planning, they imagine houses, cars, and bank accounts. Today, however, your estate may include far more than physical property. From online banking apps to cryptocurrency wallets, email accounts, and family photos stored in the cloud, digital assets are now an essential part of planning for the future. Without clear instructions, these assets can be lost, inaccessible, or tied up in legal red tape. This blog explores how to protect your digital assets as part of a comprehensive estate plan.
What Counts as a Digital Asset?
Digital assets are any form of property or account that exists in electronic form. Common examples include:
- Email and social media accounts, such as Gmail, Facebook, and Instagram.
- Online financial accounts such as PayPal, Venmo, or brokerage accounts managed digitally.
- Cloud-based files, including photos, videos, and important documents stored on platforms like Google Drive or Dropbox.
- Domain names, websites, and online businesses that hold both sentimental and commercial value.
- Cryptocurrency and NFTs which may represent significant financial investments.
These assets can be deeply personal, financially valuable, or both—making it essential to ensure they’re included in your estate plan.
Challenges of Digital Assets in Estate Planning
Planning for digital property comes with unique hurdles:
- Access Issues: Without passwords, usernames, or two-factor authentication codes, heirs may be permanently locked out.
- Legal Restrictions: Federal laws such as the Computer Fraud and Abuse Act limit unauthorized access to online accounts.
- Privacy Concerns: Many online platforms have strict policies about who can access an account after death.
- Loss of Value: Cryptocurrency and digital businesses may lose value quickly if not managed by someone with access credentials.
Texas Law on Digital Assets
To address these challenges, Texas adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) in 2017. This law allows executors, trustees, agents under power of attorney, and guardians to access a person’s digital assets if the individual has given explicit authorization in their estate planning documents. The law balances privacy with practicality by:
- Permitting fiduciaries to manage digital assets as they would physical property.
- Requiring online platforms (like Google or Facebook) to comply with valid legal requests.
- Giving Texans the ability to spell out their wishes regarding digital property in wills, trusts, and powers of attorney.
Without this documentation, family members may face unnecessary delays or outright denial of access.
How to Include Digital Assets in Your Estate Plan
1. Create an inventory of your accounts
Make a list of financial, social, and personal accounts. Note which ones have monetary value (like crypto wallets) and which have sentimental value (like photo archives).
2. Name a digital executor
Consider designating a trusted individual to handle your online accounts. This person may be the same as your estate executor or someone with tech knowledge who can carry out your wishes.
3. Update estate documents
Your will, trust, and power of attorney should clearly reference digital assets and grant authority under Texas law.
4. Use secure storage for login information
Password managers or other secure systems can make it easier for your executor or trustee to access accounts when needed. Avoid writing down sensitive information in unsecured places.
5. Review platform policies
Some companies, like Google, allow you to set up “inactive account managers.” Facebook and Instagram offer memorialization options. Incorporating these settings can complement your legal documents.
FAQs About Digital Assets
Can my family access my email or Facebook after I die?
Yes, but only if you’ve authorized it through your estate plan or the platform’s legacy tools. Without authorization, providers may refuse access under federal and state law.
Do I need a separate will for digital assets?
No, but your will, trust, or power of attorney should include provisions that specifically cover digital property.
How are cryptocurrencies handled in probate?
Cryptocurrency is treated as property under Texas law. However, access depends entirely on whether someone has the private keys or login credentials. Without them, the assets could be lost forever.
Protecting Your Digital Legacy in Texas
Digital assets are part of daily life, and they need the same careful planning as your home, savings, and other property. From financial accounts to family photos, failing to plan for digital property can leave your loved ones with frustration and loss.
At the Law Office of Carey Thompson, PC, we assist Texans in El Paso and throughout the state in creating estate plans that address both traditional and digital assets. Contact us today to ensure your digital legacy is secure and accessible to the people you trust.