Digital Assets Estate Planning – What You’re Probably Missing
When someone hears the term Digital Asset, they often think about Bitcoin, Ethereum or some other cryptocurrency, but these assets are now a part of all of our lives and often a significant portion of many estates. Despite their growing importance, digital assets are often ignored when it comes to estate planning. For those that inherit or try to administer estates today, they could be facing a crisis trying to unlock the immense possible value of what gets left behind. This blog will teach readers what they need to learn about digital asset estate planning.
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Digital Asset Estate Laws: a primer
In the last decade, many states have adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) or similar laws that were designed to help executors and trustees manage digital assets after someone dies or becomes incapacitated. It gives them the legal authority to access email accounts, social media, cloud storage, and digital currencies; however, this often only applies if the owner explicitly granted permission in estate documents and online tools like Google’s Inactive Account Manager or Facebook’s Legacy Contact.
Laws only help if Successors know what exists
These digital estate laws doesn’t solve the biggest problem: executors and trustees can’t manage something they don’t know exists. If a crypto wallet, gaming account, or cloud drive isn’t documented, they may never find it – and even if they do, custodians (like Google or Steam) may require court orders or limit access.
Here are some often overlooked, yet potentially valuable, digital accounts that must be identified in digital asset estate planning, or the value could simply be lost.
PayPal or Venmo balances
Airline miles and hotel points
World of Warcraft gold
Roblox Robux
GoDaddy domain names
No Key, No Coin
Cryptocurrency in particular is unforgiving. If there’s an offline wallet, and your private key (usually 12–24 words) is lost, your crypto will be gone, permanently. It doesn’t matter if it’s listed in your will or trust; if no one can get access, the asset is worthless.
Institutions may dump Crypto
Most banks and trust companies will not manage cryptocurrencies. If an institution is named as the trustee or executor in your estate documents, they’ll likely liquidate any cryptocurrency assets right away. If this were to occur during a market dip, it could devastate beneficiaries who wanted to hold or manage these assets over time.
A Gap in Tech Savvy
If your heirs, trustee or executor are not tech savvy, there may be limited time before information can be recovered and value restored. Key information or digital assets are often only stored on a phone or computer, and usually only the decedent knew the password or PIN. In these cases, working with forensic specialists and digital executors may be the only way to get to the assets.
What You Can Do Now
There are some things you can do to improve the estate planning for your digital assets, to increase the chances of a successful wealth transfer.
Inventory your digital assets: Crypto, online accounts, gaming profiles, cloud storage, etc. and try to assign an estimated value to each.
Document the points of access: Store keys, passwords, and recovery methods securely (e.g., password manager, encrypted USB, or written instructions in a safe).
Update your estate plan: Include digital assets explicitly in the language of your estate plan, and include all inventory. It’s a good idea to review your estate plan annually, at minimum, regardless of whether or not you hold digital assets. Ensure beneficiaries are still correct and that your final wishes are reflected accurately.
Give clear instructions: Provide information on your preferences - especially for volatile assets like cryptocurrencies. Should assets be sold immediately or held if possible?
Talk to your estate attorney: Make sure they understand digital assets and have incorporated recent law into your documents. Further, ask about digital executors and asset recovery specialists who they can call on if the need arises.
No digital estate plan is flawless but doing these things can help make the process much easier on your beneficiaries and increase the chances of all your assets winding up where you wanted them to.
Putting it all together
Digital assets are becoming a larger part of personal wealth. The digital asset estate laws may come into play as you create your financial and estate planning. We are financial advisors in La Jolla, California. If you want to discuss your overall financial plan or retiring in California or other locations, please reach out to us and set up a time to talk.
Chris Jaccard, CFP®, CFA is a lead advisor with Financial Alternatives in La Jolla, CA. When he’s not working on home improvement projects or trying to keep up with his kids, he loves to help successful families consider their alternatives and make better financial choices with the EXPERT™ Advisory Process. Schedule a time to chat about your situation or the latest project.
Sources
Duckor, Metzger, and Wynne. 10 July, 2025. The New Estate Planning Frontier: California Expands Fiduciary Access to Digital Assets. https://dmwplc.com/news/the-new-estate-planning-frontier-california-expands-fiduciary-access-to-digital-assets/
Fidelity. Estate plannig for the digital era. https://www.fidelity.com/viewpoints/wealth-management/estate-planning-for-digital-assets
Haughton, David, JD, CPWA. 5 March, 2025. Nerd’s Eye View. Estate Planning In The Digital Age: Why Digital Assets Are A Critical Part And How To Help Clients Address Them. https://www.kitces.com/blog/estate-planning-digital-assets-documentation-financial-holdings-inventory-cryptocurrency-investment-online/
Parker, Craig. Trust & Will. https://trustandwill.com/learn/what-is-rufadaa/
Purdue Global Law School. 17 April, 2025. Digital Estate Planning: How to Protect Digital Assets. https://www.purduegloballawschool.edu/blog/news/digital-estate-planning
Schechner, Sam, McMillan, Robert, and Berwick, Angus. 17 May, 2025. Severed Fingers and ‘Wrench Attacks’ Rattle the Crypto Elite. The Wall Street Journal. https://www.wsj.com/finance/currencies/crypto-industry-robberies-attacks-32c2867a
Singer, Stacy E. and Walsh, Suzanne Brown. ACTEC. Digital Asset Management in Life and Death. https://www.actec.org/resource-center/video/digital-asset-management-in-life-and-death/