Don’t Forget to Ask Your Estate Planning Attorney About Digital Assets

We accumulate so much as we go through life—and nowadays, the vast majority of it is made of thin air. Our bank accounts, our investments, and even our identities exist in a format we can’t hold in our hands. Unfortunately, your friends and family won’t inherit these valuable assets unless you’ve taken all the right legal steps during your lifetime. Let’s consider how digital assets differ from the normal Florida estate planning process and the steps you should take immediately to prevent disaster. 

[TABLE OF CONTENTS]

• What Are Examples of Digital Assets?
• Can I Put Digital Assets in My Will?
• How Are Digital Assets Valued for Estate Purposes?
• Can an Online Will Platform Handle Digital Assets?
• Take the Worry Out of Digital Estate Planning

What Are Examples of Digital Assets?

The Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), adopted in Florida and several other states, establishes digital assets as “electronic record[s] in which an individual has a right or interest.” This broad definition includes everything from cryptocurrency to cloud storage and even frequent flyer miles. 

Under RUFADAA, digital assets can be accessed and managed by a fiduciary, such as an executor or power of attorney agent, only if explicitly authorized in estate documents.

Digital assets can be broken into three main types:

Financial Digital Assets

These have clear monetary value or involve access to financial information:

• Cryptocurrency wallets (Bitcoin, Ethereum, etc.)
• Non-fungible tokens (NFTs)
• Online banking accounts
• Brokerage and investment portals
• Digital payment services (PayPal, Venmo, Cash App)
• Loyalty and rewards points (airline miles, hotel programs)
• Online gambling or gaming accounts with stored value

Professional Digital Assets

These relate to your career, business, or income-generating activity:

• Domain names
• Online storefronts (eBay, Etsy, Shopify, Amazon seller accounts)
• Social media accounts tied to a business or brand
• Affiliate program dashboards (Amazon Associates, YouTube monetization)
• Cloud-based work product or intellectual property
• Freelance platforms (Upwork, Fiverr, etc.)

Personal Digital Assets

These carry emotional, informational, or sentimental value:

• Email accounts
• Social media accounts (Facebook, Instagram, LinkedIn)
• Cloud storage (Google Drive, Dropbox, iCloud)
• Digital photo and video libraries
• Streaming and subscription accounts (Netflix, Spotify, Kindle)
• Personal websites or blogs

Can I Put Digital Assets in My Will?

Yes, and no. Digital estate planning is particularly difficult due to user agreements and privacy restrictions. Digital assets are part of your estate and can be transferred, managed, or distributed according to your wishes. However, ownership rights and access can be limited by the provider’s terms of service or federal laws, such as the Stored Communications Act (SCA) and the Computer Fraud and Abuse Act (CFAA).

For example, if you designate your spouse as your social media legacy contact in your will but fail to change the setting on your account, your spouse may not have access. This is why it’s critical to authorize your agent to handle digital assets and include this authorization in your will or trust.

Another caveat: you should not list your specific digital assets, account numbers, or passwords in your will, since the document becomes public during probate. Instead, identify your digital assets in a separate inventory, and reference this digital inventory name a digital executor to manage them in your will or trust documents without revealing sensitive data.

How Are Digital Assets Valued for Estate Purposes?

Valuing digital assets can be complicated and generally involves an appraiser’s estimate for probate or tax purposes. The value will depend on the type of asset:

• Cryptocurrency and NFTs are valued at their market price at the time of death (similar to stocks)
• Domain names or online businesses typically require a professional appraisal
• Frequent-flyer miles or loyalty points may have conditional value based on transferability
• Digital media and social media accounts are usually not assigned a financial value unless monetized

Can an Online Will Platform Handle Digital Assets?

Unfortunately, there isn’t a standard form or checklist for digital estate plans. Some online platforms offer basic provisions for digital assets, but they’re often generic and limited. While convenient, these services may not reflect the complexity of your digital footprint or comply with evolving laws.

Here’s what to consider:

• Does the platform allow you to name a digital executor?
• Can you add a separate digital asset inventory or reference document?
• Does it include clear authorization under RUFADAA or applicable state law?

For simple estates with few digital assets, an online platform might suffice. But if you own cryptocurrency, run an online business, or have significant digital holdings, it’s wise to consult an estate planning attorney to customize your documents.

Take the Worry Out of Digital Estate Planning

Digital assets should be added to your estate plan as soon as possible. Email us at hello@yolofskylaw.com today to incorporate your digital property in a way that is legally sound, secure, and accessible to your chosen representatives.