By The Law Firm of Figeroux & Associates

In today’s digital age, estate planning extends beyond physical assets and property. Digital assets—from social media accounts to cryptocurrency holdings—require careful consideration to ensure they are preserved, transferred, or closed according to your wishes. At Figeroux & Associates, we guide clients through the complexities of integrating digital assets into their estate plans. Below is a step-by-step breakdown of how to protect your digital legacy.

Step 1: Understand What Qualifies as a Digital Asset

A digital asset is any online account or file with personal, financial, or sentimental value. Common examples include:

• Financial: Cryptocurrency (Bitcoin, Ethereum), PayPal, online banking.
• Social Media: Facebook, Instagram, LinkedIn.
• Communication: Email accounts, messaging apps.
• Entertainment: Streaming subscriptions (Netflix, Spotify), gaming accounts.
• Intellectual Property: Blogs, websites, domain names, digital art.
• Business: Cloud storage, client databases, software licenses.

Without explicit instructions, these assets may become inaccessible or lost, leaving heirs locked out or vulnerable to identity theft.

Step 2: Recognize Legal Challenges

Digital assets pose unique legal hurdles:

• Privacy Laws: The Computer Fraud and Abuse Act (CFAA) restricts unauthorized access to online accounts.
• Terms of Service Agreements: Platforms like Google or Apple may prohibit account transfers, even to heirs.
• State Laws: New York’s Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) grants fiduciaries limited access—but only if explicitly authorized in your estate plan.

Step 3: Inventory Your Digital Assets

1. Create a Master List: Document every account, including usernames, passwords, and security questions.
2. Categorize by Importance: Label assets as critical (financial accounts), personal (social media), or disposable (subscriptions).
3. Use Secure Tools: Password managers (e.g., LastPass) or encrypted USB drives can store login details safely.
4. Note Instructions: Specify whether accounts should be archived, deleted, or transferred.

Pro Tip: Avoid including passwords directly in your will (which becomes public during probate). Instead, reference a separate, secure document.

Step 4: Update Legal Documents

1. Revise Your Will or Trust

• Name a digital executor to manage online accounts.
• Include a clause granting fiduciaries legal authority under RUFADAA.
• For cryptocurrency, specify wallet keys and instructions for transfer.

1. Create a Digital Asset Trust

A trust can hold ownership of domain names, blogs, or royalties from digital content, bypassing probate and ensuring seamless management.

1. Power of Attorney

Authorize someone to handle digital assets if you become incapacitated.

Step 5: Utilize Platform-Specific Tools

Many companies offer legacy contact options:

• Facebook: Assign a “Legacy Contact” to memorialize or delete your account.
• Google: Use the “Inactive Account Manager” to designate data recipients after inactivity.
• Apple: Provide a “Digital Legacy” contact to access iCloud data.

Step 6: Secure Cryptocurrency and NFTs

• Wallet Access: Share private keys or seed phrases via secure methods (e.g., splitting keys among trusted heirs).
• Cold Storage: Store hardware wallets (e.g., Ledger) in a safe deposit box and disclose its location.
• Legal Language: Ensure your will or trust explicitly addresses crypto ownership to prevent loss.

Step 7: Communicate with Fiduciaries

• Inform your executor, trustee, or family members about the existence and location of digital assets.
• Provide clear instructions for accessing encrypted files or hardware.

Step 8: Regularly Update Your Plan

• Annual Review: Update passwords, add new accounts, or remove obsolete ones.
• Life Events: Marriage, divorce, or new investments (e.g., buying NFTs) warrant revisions.
• Legal Changes: Stay informed about evolving laws affecting digital assets.

Step 9: Avoid Common Pitfalls

• Ignoring Terms of Service: Assume most accounts cannot be transferred without explicit permission.
• Poor Security: Never email passwords or store them in unsecured files.
• Vague Language: Avoid phrases like “handle my digital assets”—be specific.

Conclusion: Protect Your Digital Legacy

Digital assets are often overlooked but increasingly vital to modern estate planning. At Figeroux & Associates, we help clients navigate this evolving landscape with tailored strategies. Whether you’re a social media influencer, crypto investor, or simply want to preserve family photos, we ensure your digital footprint is managed according to your wishes.

Act Now
Don’t leave your digital legacy to chance. Contact Figeroux & Associates at 855-768-8845, text 718-986-4362, or visit www.askthelawyer.us. Our Brooklyn office, located at 26 Court Street, Suite 701, is ready to secure your future—online and offline.