When you think about planning for the future, physical items like your home, bank accounts, and family heirlooms probably come to mind first.
However, a significant portion of your modern life exists entirely online. From photos stored in the cloud to online bank accounts and cryptocurrency, your digital footprint expands every year.
If you do not plan for these items, they can become completely inaccessible to your loved ones after you pass away or if you become incapacitated. Securing your digital legacy requires a proactive approach that integrates seamlessly into your broader estate plan.
What Exactly Is a Digital Asset?
A digital asset is any piece of information or data that is stored electronically. If you need a smartphone, computer, or online login to access it, it falls into this category.
For the purposes of estate planning, these items generally fall into a few distinct groups:
- Financial Accounts: Online banking portals, investment apps, cryptocurrency wallets, digital payment platforms, and rewards programs.
- Digital Files and Media: Photos stored in the cloud, videos, music libraries, and personal writing.
- Communication Channels: Email accounts, social media profiles, and messaging apps.
- Business Assets: E-commerce storefronts, website domains, blogs that generate ad revenue, and digital client lists.
Why You Cannot Ignore Your Online Legacy
Historically, an executor could look through a person’s physical mail to identify bank statements, utility bills, and assets. Today, paper trails are vanishing. If your financial statements are delivered via email and you have not provided access to that email, your executor may struggle to locate your funds.
Beyond the financial implications, there is an emotional weight to consider. Decades of memories are frequently locked behind passwords. Without legal authorization, tech companies are notoriously strict about privacy, and your loved ones could lose access to irreplaceable photos and videos forever.
Additionally, unattended online accounts are prime targets for identity thieves. Hackers routinely scan for inactive profiles to exploit, which can create massive headaches for those handling your affairs.
The Legal Hurdle: Privacy Laws and Terms of Service
Many people assume that simply writing down a list of passwords for a spouse or a trusted friend is enough. In reality, sharing passwords can create legal complications.
Federal laws like the Computer Fraud and Abuse Act treat unauthorized account access strictly. Furthermore, when you sign up for an online account, you agree to a terms of service contract. Most of these agreements explicitly forbid sharing passwords, meaning a loved one logging into your account after you pass away could technically violate the platform’s rules.
To address this issue, Nebraska adopted the Revised Uniform Fiduciary Access to Digital Assets Act. This law provides a legal framework allowing an executor, trustee, or agent under a power of attorney to manage your digital property, but only if you explicitly grant that authority in your estate planning documents.
Four Steps to Protect Your Digital Footprint
Creating a comprehensive strategy for your online property does not have to be overwhelming. You can protect your accounts by taking a few deliberate steps.
1.) Inventory Your Assets
You cannot plan for what you cannot see. Start by making a detailed list of all your online accounts and digital property. Write down the website or app, your username, and a brief description of what is stored there.
2.) Utilize Built-in Platform Tools
Many major technology platforms offer built-in features that allow you to dictate what happens to your account if you become inactive.
- Google: The Inactive Account Manager lets you choose who receives access to your data if your account goes dark for a set period.
- Apple: The Legacy Contact feature generates a unique access key that a designated person can use to retrieve your iCloud photos and data after you pass away.
- Meta: You can select a legacy contact to look after your memorialized profile or request that your account be permanently deleted.
3.) Secure a Password Manager
Never include your actual passwords directly in a will or trust, as a will can become a matter of public record during probate. Instead, use a secure digital password manager. You can then provide your estate planning attorney with instructions on how your fiduciary can access the master password when the time comes.
4.) Grant Explicit Legal Authority
Work with an estate planning attorney to update your foundational documents. Your will, trust, and financial power of attorney should all include specific clauses that grant your chosen fiduciary the legal right to access, manage, modify, or delete your digital property.
How Different Documents Handle Your Digital Life
A complete plan coordinates multiple legal tools to ensure your wishes are carried out smoothly during your lifetime and after your passing.
Will
Your will is the primary tool for naming an executor to manage your probate estate. By including specific language regarding digital assets, you authorize your executor to interact with technology companies, request data downloads, and close accounts according to your wishes.
Trust
If you utilize a revocable living trust to avoid probate, you can transfer ownership of certain digital property, like a revenue-generating website or a cryptocurrency portfolio, directly to the trust. You must then ensure the trust document authorizes the trustee to manage these specific electronic assets.
Durable Power of Attorney
Estate planning is just as much about managing incapacity as it is about managing death. A durable financial power of attorney designates an agent to handle your financial affairs if you become unable to do so yourself.
Granting your agent access to your online banking and digital bills ensures your expenses continue to be paid without interruption if you face a medical emergency.
Tailoring Your Plan to Nebraska Law
Every state has specific nuances regarding property and probate administration. Working with a local professional ensures your plan complies with Nebraska statutes and effectively utilizes the state’s fiduciary access laws.
A customized plan provides clear, legally binding instructions that relieve your loved ones of unnecessary stress during a difficult time.
Taking the time to organize your online presence protects your privacy, secures your financial wealth, and preserves your sentimental memories for the next generation.
We Are Here to Help!
Our firm can help you create a comprehensive plan that covers all your bases effectively. To get started, send us a message or call our Omaha, NE estate planning office at 402-934-4409.
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