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In today’s digital age, our assets extend far beyond the physical. We store memories, conduct business, and hold value in places that cannot be seen or touched—our online accounts, social media profiles, and digital currencies. Much of our lives online are now represented by these digital assets, making their management increasingly important. Without proper planning, these assets may become inaccessible, lost, or mishandled after death or incapacity.
As digital asset estate planning attorneys with decades of experience, we help clients understand how to include digital assets in their estate plans to ensure a seamless transfer of both tangible and digital wealth. Digital estate planning is a distinct and necessary part of modern estate planning, addressing the unique challenges and legal considerations of managing digital assets.
If you need assistance creating an estate plan that protects your digital assets, we invite you to call Mattox & Wilson at 812-944-8005 to schedule a consultation.
Traditional estate planning documents—like wills and trusts—typically focus on tangible property, real estate, and financial accounts. However, many people overlook their growing digital footprint.
Digital assets can include:
Failing to plan for these assets may cause problems later. Loved ones might be unable to access important information or funds, and personal data could remain online indefinitely. By working with an experienced estate planning lawyer, you can ensure these assets are properly identified, managed, and transferred according to your wishes. Incorporating digital estate plans is essential to make sure your digital assets are included in your overall estate plan and managed in compliance with state-specific regulations.
Indiana law defines a digital asset as an electronic record in which an individual has a right or interest. Online accounts and digital properties are considered digital assets under Indiana law and should be included when inventorying your estate. The law excludes the underlying asset or liability itself if it is tangible or non-electronic in nature.
Indiana adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which outlines how fiduciaries—executors, trustees, attorneys-in-fact, or guardians—can access digital assets. RUFADAA provides a legal process for fiduciaries to gain access to digital assets, ensuring that representatives can manage or transfer these assets in accordance with the law.
Key provisions include:
For Indiana residents, this means that naming an executor or trustee in a will is not enough. To give your fiduciary lawful access, your estate plan should explicitly grant authority under Indiana’s digital asset statute. The law is designed to facilitate accessing digital assets while protecting privacy and security.
Incorporating digital assets into your estate plan involves careful organization, legal precision, and ongoing maintenance. Digital asset estate planning is a process that addresses the unique challenges of managing digital property, such as online accounts, cloud storage, and electronic data, ensuring these assets are properly handled and protected after your death.
Begin by cataloging your digital holdings. This should include:
Document where each asset is located, the information stored within each digital asset, and how it can be accessed. Some people may prefer to keep a physical list of passwords and asset details to ensure security and accessibility for their personal representative or trustee.
Access to digital assets depends on proper documentation. Provide:
However, never list passwords or private keys directly in a will or trust. Instead, create a secure, separate document that a fiduciary can access when necessary. Access credentials and digital assets are often stored electronically, so ensure they are handled and protected securely.
Your digital asset plan should align with your will, trust, and powers of attorney. To ensure your digital asset instructions are legally binding, include them in a legal document, such as a codicil or as part of your estate planning documents. This approach is similar to how a last will provides legal enforceability for the distribution of physical assets.
Your power of attorney might also grant authority to access and handle digital assets if you become incapacitated. Align your plan with platform-specific settings, such as legacy contact tools or inactive account managers, to prevent conflicts.
You may choose to appoint a “digital executor”—a person specifically responsible for managing your online accounts and digital property. This individual can be the same as your traditional executor or a separate person with technical proficiency and whom you trust.
It is important to grant specific permission in your estate documents for your digital executor to access and manage your online accounts, as many service providers require explicit authorization before allowing access.
Their duties might include transferring ownership of cryptocurrency wallets, downloading photo archives, deleting personal accounts, or following your instructions for memorializing social media profiles.
Keep your digital asset inventory in a secure yet accessible location, such as an encrypted flash drive, password-manager vault, or locked document safe.
Inform your fiduciary or digital executor how to access this information and review your inventory regularly. Each time you open or close an account or update passwords, update your digital asset records as well. As part of these regular updates, review and delete online accounts that are no longer relevant to ensure your digital estate plan remains current and accurate.
A digital estate plan is designed to address the unique challenges of managing and transferring digital assets after death. Unlike traditional assets, digital assets often require specific instructions and access details to ensure they are properly handled. Without a clear digital estate plan, valuable accounts and irreplaceable digital memories could be lost forever or remain inaccessible to your loved ones.
By incorporating digital assets into your estate planning, you ensure that your online accounts, digital photos, and electronic communications are accounted for and managed according to your wishes. This not only protects the monetary and sentimental value of your digital estate but also provides peace of mind that your digital legacy will be preserved and passed on securely.
A well-crafted estate plan that includes digital assets helps your personal representative or digital executor navigate the complexities of digital account management. It ensures that all assets—whether stored in a physical file or in the cloud—are properly managed and distributed, reflecting your intentions for your entire estate, both tangible and digital.
Passwords are the keys to your digital world. Without them, your executor or loved ones may have no way to retrieve essential data. To safeguard this access:
Cryptocurrency holdings—such as Bitcoin, Ethereum, or NFTs—require particular attention. Losing private keys or access information means losing the funds entirely. Some digital assets, such as non-fungible tokens (NFTs) or online businesses, may generate revenue and require special instructions for their management or transfer.
Your plan should specify:
Make sure instructions for accessing crypto accounts are clear, secure, and legally authorized within your estate plan.
Social media accounts contain both sentimental and practical value. Many people store family photos on these platforms, and these photos often have significant sentimental value. Be sure to address family photos in your digital estate plan to ensure they are preserved or managed according to your wishes. Decide whether you want your accounts deleted, memorialized, or transferred. Many platforms now allow you to appoint a legacy contact who can manage your account upon your death.
Be explicit in your written instructions so your fiduciary can act consistently with your wishes and any platform settings.
When you work with Mattox & Wilson, your estate plan will be crafted to ensure both your tangible and digital assets are protected. It is important to work with an estate planning attorney or legal advisor to ensure your digital asset estate plan is legally compliant and properly managed. Our process typically includes:
A comprehensive approach ensures that nothing, whether stored in a filing cabinet or on a blockchain, is left unmanaged.
By incorporating digital assets into your estate plan, you gain several key advantages, including:
To avoid these mistakes and ensure your digital estate plan fits your particular situation, it is vital to consult with an estate planning attorney who can tailor your plan to protect valuable digital assets.
The following checklist outlines key steps every Indiana resident should take when incorporating digital assets into an estate plan:
What are digital assets under Indiana law?
Digital assets are electronic records in which an individual has a right or interest, including online accounts, emails, photos, cryptocurrency, and online banking accounts. For example, your PayPal account or an online banking account are considered digital assets.
Why do I need a separate digital asset plan if I already have a will?
A traditional will does not automatically authorize access to online accounts or crypto holdings. For example, a bank account is typically managed through established estate procedures, while a digital asset like an online banking account or email may require specific instructions and legal authority for access. A digital asset plan ensures access credentials and instructions are properly documented.
Can my executor access my digital accounts in Indiana?
Yes, but only if your estate planning documents grant explicit authority and comply with Indiana’s digital asset statute. Online banking accounts, for example, require clear authorization in your estate plan for your executor to access them.
What happens to my cryptocurrency if I don’t include it in my plan?
Without proper instructions or private keys, your cryptocurrency could become permanently inaccessible to your heirs.
How can I ensure my social media accounts are handled properly?
Document your wishes for each account and appoint a legacy contact or digital executor to carry them out.
How often should I update my digital asset plan?
At least every two to three years, or whenever you create or close accounts, update passwords, or acquire new digital property.
Do I need a separate trust for digital assets?
Not necessarily. Most people can integrate digital assets into an existing trust or estate plan with appropriate clauses and a separate inventory document.
Can online platform policies override my estate plan?
Yes. If you set up an online “legacy contact” or account management tool, those settings may take precedence over your will or trust. Coordination is essential.
Incorporating digital assets into your estate plan is no longer optional—it’s essential. Indiana law recognizes the growing importance of digital property, but proper planning is the only way to ensure access, security, and compliance.
At Mattox & Wilson, we help clients protect every aspect of their estate, from tangible assets to digital footprints. Our attorneys will work with you to ensure your passwords, social media accounts, cryptocurrency, and online data are properly addressed within your estate plan.
Contact Mattox & Wilson today to schedule a consultation. Our firm is dedicated to helping Indiana residents protect what matters most—both online and off.