How to Manage Digital Assets in an Estate

In today’s digital age, managing an estate involves more than just physical and financial assets. Digital assets, such as email accounts, social media profiles, online subscriptions, and cryptocurrencies, have become an integral part of peoples’ lives. Executors must be prepared to locate, access, and manage these assets as part of their duties. This guide outlines the steps to effectively manage digital assets in an estate.

What Are Digital Assets?

Digital assets include a wide range of online and electronic properties, such as:

Email accounts (e.g., Gmail, Outlook)
Social media profiles (e.g., Facebook, Instagram, LinkedIn, Tiktok)
Online banking and investment accounts
Cryptocurrencies and digital wallets
Cloud storage (e.g., Google Drive, Dropbox)
Subscription services (e.g., Netflix, Spotify, Amazon Prime)
Domain names and websites
Digital photographs, videos, and other creative works

Steps to Manage Digital Assets

1. Locate Digital Assets

Review the deceased’s records for evidence of digital accounts. Look for notes, emails, or app notifications that indicate active subscriptions or accounts.
Search through their devices (computers, smartphones, tablets) for saved passwords, bookmarked sites, and applications.

2. Access the Accounts

Use login credentials provided in the deceased’s estate plan, if available.
If passwords are unavailable, check whether the deceased used a password manager. Many password managers allow access with a master password or recovery key.
For accounts without credentials, contact the service provider. Be prepared to provide proof of death (e.g., death certificate) and your legal authority as the estate executor.

3. Secure Digital Assets

Immediately secure sensitive accounts to prevent unauthorized access. Change passwords and enable two-factor authentication where possible.
Disable or deactivate accounts that are no longer needed to reduce the risk of fraud or identity theft.

4. Follow the Deceased’s Wishes

If the deceased left specific instructions for digital assets in their will or estate plan, follow those directives. For example, they may have requested the deletion of social media profiles or the transfer of digital photos to a family member.

5. Manage Financial Digital Assets

For online banking and investment accounts, identify and transfer funds according to the estate plan.
If cryptocurrencies are part of the estate, access the digital wallet using the private keys provided. Work with a professional if you are unfamiliar with managing cryptocurrency.

6. Close or Memorialize Accounts

Many social media platforms offer options to memorialize or delete accounts. For example, Facebook allows for a memorialized account, which preserves the profile as a digital legacy.
Follow the platform’s procedures to close accounts no longer needed.

Challenges in Managing Digital Assets

Managing digital assets can be complex due to factors such as:

Privacy Laws: Service providers often have strict privacy policies that limit access to accounts without proper documentation.
Lack of Information: If the deceased did not leave clear instructions or account details, locating and accessing assets can be challenging.
Technological Barriers: Executors may need to familiarize themselves with digital platforms, especially when managing cryptocurrencies or other advanced assets.

How to Simplify Digital Asset Management

To ensure smooth management of digital assets, individuals should:

Maintain an updated inventory of digital accounts, including login credentials and instructions.
Use a secure password manager and share access with a trusted individual or include details in an estate plan.
Specify their wishes for digital assets in their will, including whether accounts should be deleted, memorialized, or transferred.

Conclusion

Digital assets are an increasingly important part of estate management. Executors must take steps to locate, secure, and distribute these assets while navigating legal and technical challenges. By planning ahead and documenting digital assets, individuals can ensure their online legacy is handled according to their wishes. Executors, in turn, can approach this task with greater clarity and efficiency.

If in doubt about being an executor or whether you need a professional executor, The Executors specialize in executor and trustee services, ensuring that your estate is managed with care and precision. Contact us to learn how we can support you during this important process.

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