Estate Planning | Making a Difference One Family at a Time

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digital legacyYou probably think about estate planning in terms of bank accounts, real estate, and retirement funds. But have you thought about your digital life?

Your photos, emails, cloud storage, social media accounts, and cryptocurrency wallets are part of your digital legacy. These assets don’t always transfer automatically and can be lost forever if you don’t take steps to manage them properly.

Digital Assets Require Different Planning

Digital assets are not just about money. They include anything stored in digital form that has value to you or your family.

That might mean a decade of family photos in Google Drive, playlists on Spotify, or personal writings in an online journal. It can also mean financial value, such as cryptocurrency, domain names, or income from platforms like Etsy or YouTube.

Unlike physical property, digital accounts are often controlled by terms of service agreements that do not transfer automatically to heirs. Without planning, your executor or family members may not have the legal right to access your accounts.

Inventory Your Digital Life

The first step in protecting your digital legacy is creating a complete inventory. This includes personal, financial, and business-related accounts. Start by listing the platforms and apps you use regularly. Common categories include:

  • Email accounts
  • Social media accounts (Facebook, Instagram, LinkedIn, etc.)
  • Cloud storage (Google Drive, Dropbox, iCloud)
  • Streaming services (Netflix, Spotify, YouTube)
  • Online banking and investment accounts
  • E-commerce platforms (PayPal, Venmo, eBay)
  • Domain registrations and websites
  • Cryptocurrency wallets and exchanges

Once you have a list, write down where each account is located and what purpose it serves.

Use Secure Storage for Passwords and Access Info

Your plan is only useful if your executor or trustee can actually access your accounts. A secure password manager can help you organize and store your credentials. Most allow you to name an emergency contact who can access your data after your death.

If you use a written list, keep it in a safe place and update it regularly. Some people choose to use encrypted USB drives or share credentials with a trusted family member. You can also use a digital vault service that offers secure document storage and legacy access features.

Whatever system you choose, make sure your estate plan includes instructions on how to locate and unlock this information. Your executor cannot manage what they cannot find.

Legal Authorization Matters

In Connecticut, managing your digital assets requires specific legal provisions in your estate planning documents. The Connecticut Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), effective since October 1, 2016, governs this area. ​

Under RUFADAA, you can authorize your fiduciaries to access and manage your digital assets. However, this access isn’t automatic; your estate planning documents must explicitly grant this authority.

To ensure your digital assets are properly managed:​

  • Include Specific Language: Your will, trust, and power of attorney should clearly state that your fiduciaries have the authority to access, manage, and dispose of your digital assets. ​
  • Create a Digital Asset Inventory: List all your digital assets, including account information and access credentials, and store this inventory securely. ​
  • Use Online Tools: Some service providers offer tools to designate how your digital assets should be handled. ​By taking these steps, you can ensure that your digital assets are accessible to your chosen representatives and are managed according to your wishes.

Cryptocurrency Requires Extra Attention

If you hold cryptocurrency, it must be handled with care. Access is controlled by private keys, and if those are lost, the assets are unrecoverable.

Unlike traditional bank accounts, there is no customer service to call for help. Include your cryptocurrency wallets and exchanges in your inventory, and provide clear instructions on how to access them.

You should also include these assets in your trust or will and make sure the person managing your estate knows how to handle digital currencies. If the individual you choose is not familiar with crypto, consider appointing a co-trustee or advisor with the appropriate knowledge.

Take Action Today!

Our firm can help you create a plan that properly addresses all of your assets. You can call us at 860-548-1000 to schedule a consultation at our Glastonbury or Westport, CT estate planning offices, and you can use our contact form to send us a message.

Jeffrey A. Nirenstein, Estate Planning Attorney
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