When most people think of estate planning, they consider wills, trusts, property deeds, financial accounts, and intellectual property. But in today’s digital world, that’s only part of the picture. From online banking and cloud storage to digital currencies and email, much of our lives exist virtually.

However, many estate plans overlook digital assets and financial assets—leaving family members without access or instructions. In some cases, this may result in financial loss, data exposure, or administrative challenges during an already difficult time.

Digital legacy planning helps organize and account for your online presence as part of a broader estate strategy. This article outlines the key considerations and steps involved.

What Is Digital Legacy Planning?

Digital legacy planning involves documenting, securing, and directing how your digital estate plan and digital assets should be handled after your death or incapacity.

These may include:

• Financial: Online banking, investment platforms, cryptocurrency wallets, payment apps
• Personal: Email, cloud storage, photos, subscription services
• Social: Facebook, Instagram, LinkedIn, and other online profiles
• Business: Websites, domain names, e-commerce accounts
• Digital property: NFTs, online loyalty points, or frequent flyer miles

These assets may hold financial or sentimental value, and clear instructions can support more effective administration by your fiduciaries or heirs.

Why Digital Legacy Planning Matters

Digital accounts often require usernames, passwords, or two-factor authentication. Without preparation, family members or executors may face challenges such as:

• Difficulty accessing online financial accounts
• Loss of documents or photo archives stored in the cloud, and in some cases, submitting a death certificate may be necessary for access.
• Continued charges for active subscriptions
• Risk of identity theft if email or social accounts are left unsecured

Including digital instructions in your estate plan may help avoid confusion, protect sensitive data, and reduce the burden on loved ones.

Step 1: Take Inventory of Digital Assets

A helpful first step is to list your digital accounts and assets. Examples include:

• Email accounts (personal or business)
• Social media platforms (Facebook, Instagram, LinkedIn, etc.)
• Online banking or investment accounts
• Cryptocurrency wallets or exchange accounts
• Cloud storage (Google Drive, iCloud, Dropbox)
• Subscription services (Netflix, Spotify, SaaS tools)
• Online marketplaces (Amazon, PayPal, Venmo, eBay)
• Domain names and websites
• Loyalty and rewards accounts

Step 2: Store Credentials Securely

Once you’ve taken inventory, consider how trusted individuals will access this information if needed.

Options include:

• Password managers: Services like 1Password or LastPass allow secure storage and sharing with designated contacts
• Digital vaults: Some financial firms offer encrypted storage for documents and instructions
• Estate-specific tools: Certain platforms like Facebook and Google offer legacy access or inactive account managers
• Physical backups: A list stored in a secure location (e.g., safe or attorney’s office) may serve as a backup

Always keep access protocols updated and limit unnecessary sharing.

Step 3: Incorporate Digital Assets Into Your Estate Plan

Digital legacy planning is most effective when it’s integrated into legal documents and broader estate plans.

Key steps include:

• Updating wills or trusts to authorize fiduciaries to manage digital assets
• Providing clear instructions for each type of account (e.g., close, memorialize, transfer)
• Designating a digital executor, where state laws permit
• Communicating with your estate attorney or planning team to ensure coordination

Step 4: Communicate With Your Heirs

Once your plan is created, it’s helpful to discuss it with the individuals who may be responsible for execution. This can include:

• Where and how to access credentials or documents
• Your preferences for social accounts (e.g., memorialization vs. deletion)
• Any accounts or files you want preserved for personal or family reasons

Some digital assets may be unfamiliar to heirs, particularly cryptocurrency wallets or online business tools. Providing context can help reduce confusion.

Potential Risks of Inaction

Without planning, common risks may include:

• Unclaimed or inaccessible financial accounts
• Exposure of private data through unattended accounts
• Loss of sentimental digital materials (e.g., family photos, personal writings)
• Unnecessary administrative delays for your executor or attorney

How TruNorth Advisors Supports Digital Legacy Planning

TruNorth Advisors assists clients with the organization and integration of digital assets into their broader estate strategy. This includes:

• Creating a digital asset inventory
• Exploring secure storage options for passwords and documents
• Coordinating with estate attorneys to formalize instructions
• Helping facilitate family communication where appropriate

By aligning digital considerations with financial and legal planning, clients can approach their legacy with greater clarity.

Conclusion

Digital legacy planning is an important aspect of modern estate strategy. From cloud storage to cryptocurrency, your online presence is part of what you leave behind.

While the tools and technologies may evolve, the goals remain consistent: protect what you’ve built, provide guidance for those you care about, and support the orderly transfer of your affairs.

Want to include digital planning in your estate strategy? TruNorth Advisors can help you identify key assets, store information securely, and coordinate with your legal team to align your legacy across both physical and digital domains. Contact us to learn more about this service.

Disclosure

This material is provided for informational purposes only and does not constitute legal, investment, or tax advice. Resolute Capital, LLC, dba TruNorth Advisors, is a federally registered investment adviser under the Investment Advisers Act of 1940. Registration as an investment adviser does not imply a certain level of skill or training.