The Rise of Digital Assets and How to Protect Them

I’m sure I’m not the only one who’s told my best friend to be the first person to grab my phone when I die — to “clean it up” before my family gets to it. Joking… sorta. But the truth is, most people never stop to think about what happens to their phone and other digital assets when they die.

What are digital assets?

• Photos and videos stored on your phone, in the cloud, or on an external hard drive

• Digital files such as emails, financial documents, or records saved on your computer or cloud storage

• Cryptocurrency

• URLs and domain names

• Social media profiles (X, Facebook, Instagram, TikTok, YouTube, etc.)

• E-commerce accounts (Etsy, Shopify, etc.)

  
  

Some digital assets carry real financial value — like cryptocurrency, influencer accounts, or online business platforms that generate income. These can make up a meaningful portion of your estate. But whether or not your digital presence has monetary worth, your legacy today extends beyond traditional assets like money, heirlooms, and personal property. In the modern world, your estate plan should also include a plan for your digital life.

Three tips to help you protect and plan for your digital assets:

1. Take inventory of your digital assets. At ACEMaven Legal, your estate plan includes a password list at the back where we encourage you to record every online account you use — including spreadsheets, digital records, banking and insurance information, and where each can be found. This is crucial for personal assets, but even more so if you’re a business owner planning for succession. Make a list of all business records and files that exist online or in the cloud. If it connects to your business, it belongs on the list. This ensures your attorney and trusted decision-makers can track, manage, and pass down your digital assets according to your wishes.

2. Designate a digital fiduciary. Sometimes called a “cyber successor,” this is someone you trust to manage your digital assets and online accounts if you become incapacitated or pass away. Often, this person also serves in a traditional fiduciary role — like your power of attorney or personal representative. Access to digital assets is governed by state law, so if you don’t name someone to manage them, your wishes may not be followed. Keep your login information secure, and consider using tools like Google’s Inactive Account Manager or Apple’s Digital Legacy to ensure your fiduciary can act quickly and legally.

3. Determine the right legal tools for your plan. Depending on your situation, it may be wise to fund certain digital assets into a trust or include specific digital access within your power of attorney. ACEMaven Legal can help you identify the best way to protect and transfer your digital assets, select your fiduciaries and beneficiaries, and ensure the proper legal tools are in place. Laws in this area are constantly evolving, so it’s important to review and update your plan regularly.

While managing digital assets can feel complicated, the worst thing you can do is nothing. Inaction can lead to the loss of precious photo albums, cryptocurrencies, online business income, or important files. Taking time now to plan ensures your digital legacy — and your peace of mind — are protected.