Your estate today is more than just a house and a bank account. It includes your entire digital life. Think of digital assets as any electronic account or record you possess. Without proper planning in California, these assets can be lost or inaccessible. You must integrate your digital life into your estate plan now to protect your legacy.
Access can be challenging
Your estate includes a comprehensive digital life, which may consist of cryptocurrency, online accounts, email and social media. Without proper planning, these assets can become inaccessible due to password requirements and the provider’s terms of service (TOS).
Access to digital assets in California is governed by the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA). The law allows your executor or trustee to view the content of your electronic communications. However, you must grant explicit permission, either through an online tool provided by the custodian or in a legal document like a will, trust or power of attorney.
How to secure your digital legacy
You need a clear plan to ensure your digital property passes smoothly. Here are three vital steps:
1. Create a digital inventory
Creating a detailed, secure list of all your assets, providers and instructions is crucial.
- List all online financial and business accounts.
- Document every cloud storage or social media platform.
- Outline your wishes for each asset: transfer, delete or memorialize.
Keep this inventory confidential. You should never store passwords directly within a will because these documents typically become part of the public court record upon filing for probate or administration. Instead, securely store them in an encrypted location and provide your fiduciary with access instructions.
2. Grant explicit authority
To ensure your fiduciary can manage or terminate all types of digital accounts and secure full access, particularly to the content of your electronic communications, your legal documents, such as a will, trust, or power of attorney, should include clear, explicit language granting this authority, as custodians may otherwise deny access based on a strict interpretation of privacy laws or TOS agreements.
3. Coordinate with online tools
Many major platforms offer their own features to manage accounts after your death. These tools are often referred to as a “legacy contact” or an “inactive account manager.”
In California, instructions you leave using a custodian’s online tool legally supersede and take priority over contrary directions in your will, trust or other legal document. You must ensure that the instructions in your estate documents align with your choices on these online platforms.
For high-value assets, such as cryptocurrency or NFTs, proper planning is essential. If you lose your secure private keys or wallet information, these assets become permanently unrecoverable.
Protect your digital future
Digital assets may constitute a significant part of your total wealth and personal history. By proactively planning for them, you prevent confusion, loss and disputes for your family. Do not let complex technology erase your legacy.
Guidance from a skilled estate planning attorney is essential when reviewing or creating a plan that is fully RUFADAA-compliant and secures all your digital holdings.