The Importance of Including Digital Assets in Your California Estate Plan

Estate planning has traditionally focused on physical property, financial accounts, and tangible possessions. However, as our lives become increasingly intertwined with technology, a new category of assets demands attention: digital assets. From email and social media accounts to cryptocurrency and online banking, digital assets are an essential part of modern life. Failing to account for these assets in your estate plan can result in confusion, delays, and even the loss of valuable or sentimental property.

In California, as in other states, the law is evolving to keep pace with technological advancements. Estate planning today requires a thoughtful approach to managing digital assets to ensure that your wishes are carried out and your loved ones are not left scrambling to access important information. To learn more about how to include digital assets in your estate plan in Los Angeles or the San Gabriel Valley, contact Blasser Law to visit with our knowledgeable and experienced Claremont estate planning attorneys.

What Are Digital Assets?

Digital assets include any content, information, or data stored electronically. This can encompass a wide range of items, from personal and financial to professional and creative. Common examples include email accounts, online banking and investment accounts, digital photos and videos, social media profiles, blogs, digital subscriptions, e-commerce accounts like eBay or Etsy, and cryptocurrencies like Bitcoin or Ethereum.

Some digital assets hold purely sentimental value, such as family photo archives or personal blog posts, while others can be financially significant. Digital wallets, online businesses, and monetized YouTube channels, for instance, may represent substantial income streams or intellectual property. Treating these assets with the same care as physical property is essential in today’s estate planning.

Legal Framework for Digital Assets in California

California has adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which governs how fiduciaries—such as executors, trustees, and agents under a power of attorney—may access and manage digital assets. Under RUFADAA, a fiduciary must have express authorization in estate planning documents to access certain digital accounts or content.

This law distinguishes between the catalog of electronic communications, which includes metadata like the time and date of messages, and the content of those communications, such as the actual text of an email or message. While fiduciaries can generally access the catalog with less restriction, access to content usually requires explicit permission.

In practice, this means that without proper language in your estate plan, your executor may face legal barriers in retrieving your emails or managing your online accounts. Furthermore, companies like Google and Facebook have their own policies and user agreements that may limit access or provide mechanisms, such as legacy contacts or inactive account managers, that allow users to specify what happens to their accounts after death.

Why Digital Assets Matter in Estate Planning

Failing to plan for digital assets can lead to a number of complications. Loved ones may struggle to locate or gain access to important information, resulting in frustration and potential financial loss. For example, an executor who cannot access a deceased person’s email account may miss vital communications about banking, insurance, or bills. Valuable intellectual property stored online could be lost if no one knows it exists or how to retrieve it.

Even more troubling is the potential for identity theft. Unattended digital accounts may be vulnerable to hackers who exploit inactive profiles. A comprehensive digital estate plan helps prevent such risks by ensuring that accounts are identified, protected, and properly managed or closed.

Including digital assets in your estate plan also gives you control over how your online presence is maintained. You can specify whether you want your social media accounts memorialized or deleted, who can access your email or cloud storage, and how your digital property should be distributed. This clarity can bring peace of mind to you and your loved ones.

Managing Digital Assets in Your Estate Plan

To incorporate digital assets into your estate plan, begin by taking an inventory of all your online accounts and assets. This includes everything from your Apple ID and Dropbox to cryptocurrency wallets and domain names. Make a comprehensive list that includes usernames, account types, and any other relevant details.

While it may be tempting to record passwords, it’s important to do so securely. Do not include sensitive login information directly in your will, as it becomes a public record once filed with the court. Instead, consider using a password manager with emergency access features, or maintain a separate digital access plan that can be safely stored and updated.

Next, work with an estate planning attorney to ensure your legal documents reflect your wishes regarding digital assets. This may involve updating your will, trust, or power of attorney to include specific language authorizing your fiduciaries to access and manage digital accounts in accordance with RUFADAA.

Depending on your situation, you may also want to designate a separate digital executor—someone with the technical know-how and judgment to handle your digital affairs. While California law does not currently recognize a digital executor as a formal legal role, you can still appoint someone informally in your estate plan to guide your primary executor or trustee.

Unique Considerations for Cryptocurrencies and Online Businesses

Cryptocurrencies present unique challenges in estate planning due to their decentralized nature and strict access requirements. If private keys and recovery phrases are lost, the assets are essentially unrecoverable. It’s vital to ensure that access instructions are preserved in a secure but accessible manner and that your fiduciary understands how to manage these assets.

Similarly, if you own an online business, such as an e-commerce store, subscription service, or monetized content channel, your estate plan should address how that business will be managed or transferred. You may need to include instructions regarding domain name renewals, website hosting, and business-related email accounts.

Without clear planning, these assets may be neglected or lost, potentially affecting employees, customers, or heirs who depend on the income or value generated by the online enterprise.

Keeping Your Digital Estate Plan Up to Date

Because digital assets and online platforms change frequently, it is important to review and update your digital estate plan regularly. New accounts, password changes, or shifts in technology may render old information obsolete. Periodic reviews with your attorney will help ensure your estate plan remains current and effective.

You should also check the settings of your most critical accounts to see if they offer built-in legacy or access planning tools. Google’s Inactive Account Manager, Facebook’s Legacy Contact feature, and Apple’s Digital Legacy program all allow you to pre-select individuals who can manage your accounts in the event of your death or incapacity. Using these features in conjunction with your estate plan provides a more seamless approach to digital asset management.

Professional Help Is Key

Handling digital assets in estate planning is not a one-size-fits-all task. The complexity of digital property, combined with the evolving legal landscape, makes professional guidance essential. An experienced California estate planning attorney can help you navigate the intricacies of RUFADAA, understand the implications of various service provider policies, and ensure that your digital assets are properly addressed in your plan.

At Blasser Law in Claremont, we help clients throughout Los Angeles and the San Gabriel Valley create comprehensive estate plans that account for every aspect of their lives—including the digital ones. Contact us today to learn how we can assist you in securing your digital legacy and giving your loved ones the tools they need to carry out your wishes with confidence.