What counts as a digital asset
"Digital assets" in estate planning has a broad meaning. It covers anything of value, financial or sentimental, that exists in digital form or requires digital access:
- Financial accounts accessed online (brokerage, bank, PayPal, Venmo)
- Cryptocurrency (Bitcoin, Ethereum, and any other tokens)
- Domain names and websites with commercial value
- Online business accounts, storefronts, or ad accounts
- Social media accounts
- Email accounts
- Cloud storage (iCloud, Google Drive, Dropbox)
- Streaming service subscriptions
- Reward points and frequent flyer miles
- Digital media libraries (iTunes, Kindle)
The access problem
The practical challenge with digital assets isn't ownership, it's access. Even if you leave a digital asset to someone in your will, your executor can't transfer it without access credentials. And even with credentials, many platforms prohibit transferring accounts in their Terms of Service.
Illinois's Revised Uniform Fiduciary Access to Digital Assets Act (755 ILCS 70/) gives your executor, trustee, or agent the legal right to access your digital assets, but only if you've explicitly authorized it. That authorization can appear in your will, trust, or power of attorney, or through an online platform tool.
Cryptocurrency: the private key problem
Cryptocurrency is the highest-stakes digital asset category. Unlike a bank account, there is no customer service number to call if access is lost. Whoever controls the private key controls the funds. Period.
If your cryptocurrency is held in a hardware wallet (like a Ledger or Trezor), your executor needs the physical device AND the seed phrase. If either is lost, the funds are gone permanently. If your crypto is on an exchange (like Coinbase), access requires your login credentials and possibly a 2FA device.
Never include private keys or seed phrases in your will, wills become public records during probate. Store them separately in a secured location your executor knows about.
Social media accounts
Most major platforms have policies for deceased users. Facebook allows memorialization or account removal. Google has an Inactive Account Manager. Apple has a Legacy Contact program. Twitter/X allows authorized account removal. Document which platforms you use and what you'd want done with each.
What to document in your Digital Asset Inventory
A Digital Asset Inventory is a companion document, not part of your will or trust, but stored alongside it, that gives your executor what they need to locate and access your digital life:
- Every platform or service you use
- Your username or email for each
- Where your password is stored ("password manager" is sufficient, then provide access to the manager)
- For cryptocurrency: the type of wallet, where it's stored, and where the seed phrase/private key can be found
- What you want done with each account (transfer, memorialize, delete)
- Any automatic payments being made from digital accounts
Password managers
If you use a password manager (1Password, Bitwarden, LastPass), your Digital Asset Inventory can point your executor to it. They need: the master password or recovery key, and a way to access the device or service. Store the master password somewhere secure and accessible, not only in the password manager itself.