Top 5 Mistakes To Avoid in Digital Estate Planning

Estate planning is no longer limited to physical assets like real estate, bank accounts, and family heirlooms. Today, it extends to digital estate planning — email accounts, social media profiles, cloud storage, online subscriptions, and even cryptocurrencies — and carries personal and financial significance.  

Still, many people neglect to include these digital assets in their estate plans, leading to confusion, stress, and unresolved digital legacies.  

Here are five common digital estate planning mistakes you want to avoid.

#1 Failing to create an inventory of digital assets

One of the most frequent missteps in estate planning is failing to identify and document your online assets. While many people meticulously list their physical possessions and financial accounts, they often forget about their online bank accounts, active credit cards, email addresses, and social media profiles.   

What happens to your cryptocurrency, Dropbox folders, or personal blog when you’re no longer here? Ignoring these assets can permanently lock out loved ones. Start with a comprehensive inventory of all your digital accounts, subscriptions, and assets. Categorize them by type (financial, social, professional, creative, etc.) for easy reference. 

#2 Not appointing a digital executor

Traditional estate plans often name an executor to handle physical and financial matters, but few include a designated digital executor. Find someone you can entrust to manage your online presence and digital property. 

Choose someone trustworthy and tech-savvy to act as your digital executor. Provide clear instructions about what should happen to each account (e.g., memorialized, deleted, or transferred), and formalize this role in your estate plan. Many estate planning attorneys can incorporate this into your current documents, or you can draft a separate directive with specific language. 

#3 Not documenting passwords and access information securely

Even the most well-prepared executor can’t do much without access. Instead of leaving your digital executor to wrestle with customer support or locked accounts, give them the keys they’ll need to unlock your digital estate. 

Use a password manager to store login credentials securely and share access with your digital executor when appropriate. Many of these tools offer emergency access features or the ability to share specific passwords. Remember to update this information regularly, especially when adding new accounts or enabling multi-factor authentication. 

#4 Overlooking legal and privacy considerations

Just because you use a digital platform doesn’t mean you truly “own” the data. Many platforms, from social media sites to cloud storage providers, have terms of service that limit account access after your death. To safeguard your digital legacy, review the terms for your most-used accounts and take advantage of platform-specific tools. For example, some social media platforms allow users to designate a legacy contact who can manage parts of their accounts after passing. Similarly, cloud storage platforms may offer an inactive account manager. These allow you to pre-select what happens to your data if your account becomes inactive. 

Digital estate planning isn’t just about protecting assets. It’s about ensuring your online life isn’t inaccessible or unintentionally erased. 

#5 Neglecting to update your digital estate plan

Digital estate planning isn’t a one-and-done process. Your estate plan needs to evolve as technology evolves and your digital footprint grows. With new platforms, services, and types of digital assets, what wasn’t relevant last year could be critical today. Review and update your digital asset inventory and executor instructions at least annually or after significant life events in light of those changes. At Brighton Jones, we help clients stay on top of financial account updates and access protocols, but managing your broader digital presence requires ongoing attention. 

Digital estate planning ensures your online legacy aligns with your wishes. By avoiding these common mistakes, you can simplify the process for your loved ones and protect your valuable digital assets. Talk to an estate planning professional to build a comprehensive plan that includes your digital and physical property. Your future self — and your loved ones — will thank you. 

This content is for informational and educational purposes only and should not be construed as individualized advice. For individualized advice tailored to your specific circumstances, please consult with your adviser.