In today’s increasingly connected world, your estate plan should do more than just account for physical assets—it must also protect your digital identity and online presence. From email accounts and social media profiles to cryptocurrency wallets and online financial accounts, our digital lives are deeply integrated into our wealth, personal history, and daily operations.
Failing to account for digital assets and identity in your estate plan can lead to lost value, security risks, and confusion for your loved ones.
At Peabody Law Firm, we help clients in Southlake, Westlake, Trophy Club, Colleyville, Keller, and surrounding areas safeguard their digital assets as part of a modern, comprehensive estate plan.
Why Digital Identity Matters in Estate Planning
Your digital identity consists of your online profiles, credentials, and the digital “footprint” you leave behind. It includes things like:
- Email accounts
- Social media (Facebook, Instagram, LinkedIn, X)
- Digital subscriptions (news services, cloud storage, etc.)
- Online banking, investment, and credit card accounts
- Cryptocurrency wallets
- Domain names and websites
- Cloud-based documents and photos
- Digital intellectual property
Without proper instructions in your estate plan, these digital assets may be inaccessible to your family—or worse, vulnerable to identity theft or fraud after your death.
1. Create a Digital Asset Inventory
The first step in protecting your digital identity is to catalog everything. This includes:
- Account names and usernames
- Passwords and how they’re stored (e.g., password manager or physical list)
- Two-factor authentication settings
- Ownership documents for digital assets like crypto, NFTs, or domain names
You don’t need to list passwords in your estate plan itself, but you should identify how your executor or digital trustee can securely access them.
💡 Tip: Use a secure, encrypted password manager and include access instructions in a letter of instruction.
2. Name a Digital Executor or Trustee
In Texas, you can designate a digital executor—a trusted individual tasked with managing your digital assets upon death or incapacity. This person may be the same as your primary executor, or someone else with technical expertise.
Responsibilities may include:
- Closing social media accounts
- Accessing and transferring digital currency
- Downloading and preserving family photos or documents
- Managing online financial accounts
- Handling email or subscription cancellations
Your estate plan should clearly state your wishes and grant the digital executor legal authority to access accounts, in compliance with the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA).
3. Address Social Media and Online Legacies
Your social media presence is part of your story. Each platform handles deceased user accounts differently:
- Facebook: Allows you to choose a legacy contact or have your account memorialized.
- Google: Offers an Inactive Account Manager to share data with trusted individuals.
- Apple: Provides Legacy Contact access for data stored in iCloud.
Include platform-specific instructions in your estate planning documents, such as:
- Whether to delete or memorialize your accounts
- Who can access and manage them
- Whether to archive digital media (e.g., photos or videos)
4. Plan for Digital Financial Assets
Cryptocurrency and other digital investments require specific estate planning steps because access relies entirely on private keys and passcodes.
If your family can’t access your:
- Bitcoin wallet
- Ethereum account
- NFT portfolio
- Online trading platform login
…those assets may be lost permanently.
Include instructions in your estate plan for:
- How to access digital wallets
- Where private keys are stored
- Which trustee or heir is authorized to manage or inherit them
Consider using a cold storage solution and document access methods securely and clearly.
5. Use Trusts to Hold or Distribute Digital Assets
Certain digital assets—such as domain names, online businesses, or intellectual property—may have ongoing value after your passing.
You may want to:
- Transfer ownership of a website or blog into a revocable or irrevocable trust
- Ensure that ad revenue, royalties, or content monetization continues
- Distribute access to multiple heirs or designate a manager
Your estate plan should also specify how digital income streams are to be taxed and reported by your trustee or executor.
6. Protect Against Posthumous Cybercrime
Digital identity theft and fraud are real concerns after death. Criminals often target the deceased by:
- Opening credit cards in their name
- Hacking into email or bank accounts
- Impersonating them online
To prevent this, your estate plan should:
- Direct your executor to notify major credit bureaus of your death
- Close online accounts promptly
- Secure any cloud-stored documents or personal data
- Monitor email accounts until they are deactivated
7. Communicate Your Digital Wishes Clearly
Like your tangible estate, your digital estate should reflect your personal and family values. Use a Letter of Instruction to guide your executor or heirs through:
- Access protocols
- Accounts to prioritize
- Digital heirlooms to preserve
- Online businesses or blogs to maintain or close
This informal document provides context and clarity, reducing confusion for loved ones during an already stressful time.
Final Thoughts: Make Digital Planning Part of Your Legacy
As more of our lives shift online, digital estate planning is no longer optional—it’s a critical part of securing your legacy and protecting your loved ones. Whether it’s your financial accounts, family photo archive, or online business, your digital presence should be carefully incorporated into your estate planning documents.
At Peabody Law Firm, we help individuals and families across Southlake, Westlake, Trophy Club, Colleyville, Keller, and nearby communities modernize their estate plans to include all aspects of their lives—digital and physical.
Contact Peabody Law Firm today to schedule a consultation and ensure your estate plan fully reflects your assets and your identity in the digital age.
Legal Disclaimer
This article is for educational purposes only and does not constitute official legal or financial advice. Estate planning laws are complex and subject to change. Individuals should consult with a licensed estate planning attorney to determine the best strategies for their unique situation.