Don’t Make Dying More Complicated for Your Family: Plan for Digital Assets

As more of our lives move online, estate planning has become far more complicated than simply deciding who inherits physical property. Today, many of our most valuable and personal assets exist entirely in digital form.

From online banking and cryptocurrency to social media accounts, cloud storage, photos, email accounts, and subscription services, nearly everyone owns digital assets — even if they do not realize it.

Without proper planning, your family or estate administrator may struggle to locate, access, or manage these accounts after your death.

What Are Digital Assets?

Digital assets include any electronically stored account, file, or online property that you own or control. Common examples include:

• Email accounts

• Social media profiles

• Online banking accounts

• Cryptocurrency and digital wallets

• Cloud photo storage

• Subscription services

• Reward points and loyalty accounts

• Online business accounts

• Documents stored digitally

• Password-protected apps and devices

In the past, important records and valuables were typically stored physically in a home, office, or safe deposit box. Today, much of that information is stored on remote servers controlled by companies like Google, Meta, banks, cloud storage providers, and app developers.

This creates major challenges for loved ones after someone passes away.

Why Digital Assets Create Problems After Death

Estate administrators and executors have a legal duty to identify, collect, and manage estate assets. However, digital assets are often difficult to access because:

• Family members may not know the accounts exist

• Passwords and login credentials may be unavailable

• Terms of service agreements may restrict access

• Federal privacy and anti-hacking laws limit unauthorized access

• Some accounts automatically delete data after inactivity

Even when an executor has authority under a will, that does not automatically mean they can access digital accounts. This is where Pennsylvania’s digital asset law becomes important.

Pennsylvania’s Digital Asset Law: RUFADAA

Pennsylvania adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which became effective on January 19, 2021. RUFADAA gives certain fiduciaries — including executors, trustees, and agents acting under powers of attorney — legal authority to manage digital assets in certain situations. However, the law only works effectively if proper estate planning documents are in place.

Who Can Access Your Digital Assets?

Under Pennsylvania’s RUFADAA law, access to digital assets is determined in the following order of priority:

1. Online Tools and Account Settings

Some companies allow users to designate what happens to their accounts after death using built-in account settings or “online tools.” For example, Facebook allows users to assign a “Legacy Contact” to manage certain aspects of an account after death. These online instructions generally override conflicting instructions in a will or trust.

The Problem With Relying Only on Online Tools

The average person has dozens — if not hundreds — of online accounts, apps, and digital services. Managing individual settings for every account is time-consuming and unrealistic for most people. It is also easy to forget to update these settings over time.

2. Your Will, Trust, or Power of Attorney

One of the most effective ways to authorize access to digital assets is through properly drafted estate planning documents.

You can grant authority:

• after death through a will or trust

• during your lifetime through a power of attorney

This approach provides broader coverage across your accounts and gives your fiduciaries clearer legal authority.

Why Digital Asset Planning Matters

Simply giving someone access to your accounts is not enough. A complete digital estate plan should also address:

• which accounts exist

• where important files are stored

• how accounts should be handled

• which assets should be preserved or deleted

• who should receive valuable digital property

For many people, the best solution is a combination of:

• wills

• trusts

• powers of attorney

• digital asset inventories

• written instruction letters or memoranda

  
  

3. Terms of Service Agreements

If you do not provide instructions, the company’s terms of service agreement usually controls what happens to your account. In other words, the future of your digital assets may be determined entirely by private technology companies.

Why This Is Risky

Doing nothing essentially means outsourcing your digital estate plan to app developers and online service providers. That often leaves families with limited access, unnecessary delays, and avoidable complications during estate administration.

4. Pennsylvania’s Default RUFADAA Rules

If neither your instructions nor the company’s terms address the issue, Pennsylvania’s default RUFADAA rules apply. The law treats different types of digital assets differently.

For example:

• fiduciaries may receive broader access to financial digital assets such as cryptocurrency

• access to electronic communications is often limited

In many cases, fiduciaries can only access a “catalog” of communications, such as:

• sender information

• recipient information

• dates and times of messages

They may not be able to read the actual contents of emails or messages without explicit authorization.

Important Limitation: Access Is Useless Without an Inventory

One of the biggest misconceptions about digital asset laws is that they automatically solve access problems. They do not. If your family does not know which accounts exist, legal authority alone may accomplish very little. That is why maintaining a secure inventory of your digital assets is critical.

Best Practices for Digital Asset Estate Planning

To help protect your family and simplify estate administration, consider the following steps:

Update Your Estate Planning Documents

Your:

• will

• trust

• power of attorney

should specifically address digital assets and authorize fiduciary access where appropriate.

Create a Digital Asset Inventory

Maintain an updated list of:

• online accounts

• usernames

• passwords

• security questions

• cryptocurrency wallets

• important digital files

This inventory should be stored securely to reduce the risk of fraud or identity theft.

Leave Clear Instructions

Consider creating a Digital Asset Instruction Letter that explains:

• which accounts should be closed

• which accounts should be memorialized

• who should receive digital property

• how sensitive information should be handled

Digital Assets Are Now Part of Every Estate Plan

Digital assets are no longer a niche issue. Nearly every adult now owns important online accounts and digital property. Without proper planning, loved ones may face unnecessary legal, financial, and emotional difficulties trying to access or manage those assets after death. A comprehensive estate plan should address both your physical and digital life.

Schedule an Estate Planning Consultation

If you have questions about digital assets, estate planning, wills, trusts, or powers of attorney, contact our experienced estate planning attorneys to learn how to incorporate digital asset planning into your estate plan. You should also consider requesting a Digital Asset Inventory checklist to help organize your accounts and important information.