Estate planning has traditionally focused on real property, bank accounts, and tax issues. Now, as more and more people manage their lives online, digital assets and debts need to be taken into account.
Digital assets are not a new concept, but more people are turning to online accounts and electronic communication than ever before. Many of us may not be aware of how many online accounts we actually have — which can easily exceed 100 for people who do the majority of their transactions online.
If your executor cannot access and manage those accounts after your death, they may not be able to locate all of the assets or debts of your estate — which has direct consequences for how efficiently and accurately your estate is administered.
What Counts as a Digital Asset?
Digital assets can include social media accounts, email, online banking, cryptocurrencies, photos, documents, and so much more. More specifically, your estate may include:
- Online banking and investment accounts
- Cryptocurrency holdings (Bitcoin, Ethereum, and others)
- Email accounts and social media profiles (Facebook, Instagram, LinkedIn)
- Online businesses or income-generating accounts (Shopify stores, YouTube channels, affiliate accounts)
- Subscription services tied to a credit card
- Stored documents, photos, and digital files (Google Drive, Dropbox, iCloud)
- Domain names and websites
- Loyalty points and reward programs with monetary value
Technology has enabled many people to avoid disruptions in their daily routines, and many businesses now operate entirely online. This means the value tied up in digital assets can be significant — and easy to overlook in a traditional will.
Why a Standard Will May Not Be Enough
When people think of estate planning, they tend to consider obvious assets such as property, cash, and investments. A legal will can deal with these assets effectively but may not directly address a person’s digital assets and online accounts.
Beyond asset value, there is also a practical risk: if credit card or banking information is linked to online accounts and not properly managed after death, there is a risk of fraudulent charges going undetected. Significant digital issues can also arise for small business owners when their corporate assets need to be managed by their beneficiaries.
Ensuring your digital assets are documented and accessible to your executor is one of the most practical steps you can take in your estate plan.
What Your Executor Needs to Manage Your Digital Assets
For individuals who have an online presence, it is important to ensure your executor knows that digital assets exist, how they can be accessed, and how they are intended to be dealt with after your death. Your executor will need all relevant login information including passwords, user IDs, account numbers, and other relevant information.
Without this information, your executor may be unaware of certain assets or accounts where there is no paper record. This can lead to an incomplete or delayed estate administration — and in some cases, assets that are never recovered.
Practical Steps: How to Document Your Digital Assets
A secure password management tool, such as 1Password, Keeper, or LastPass, is a good place to start. Keeping an updated and comprehensive list of your assets with your estate lawyer is also an effective way to ensure your estate is administered in an efficient and timely manner, rather than being incomplete or delayed as a result of undiscoverable assets.
Making your executor aware of where to find this information is also important — otherwise they may not be aware of certain assets or accounts where there is no paper record.
At a minimum, consider documenting the following for your executor:
- A list of all online accounts and their purpose
- Usernames, passwords, and two-factor authentication details
- Instructions for what to do with each account (close it, memorialize it, transfer it)
- Location of any cryptocurrency wallets or recovery phrases
- Details of any online businesses or income streams
- Contact information for any platforms that may require a formal death notification process
Digital Assets and Estate Tax Filing
For executors, locating and documenting digital assets is not just a matter of convenience — it has direct implications for filing accurate and complete tax returns. If an executor cannot access online accounts, they may miss reportable income, undiscovered assets, or outstanding debts.
See our guide for a full overview of an executor’s tax responsibilities.
What If You Own Property in Multiple Jurisdictions?
If you own property in more than one province or country, your estate planning needs extend beyond digital assets.
Get Help With Your Estate Plan in Victoria, BC
Ensuring your digital assets are properly documented and your executor has what they need is an important part of a complete estate plan. If you need guidance on wills and estates planning in Victoria, BC, contact Deborah Todd Law for a consultation.
