Top Digital Estate Planning Mistakes to Avoid

While digital assets were once a brief side discussion in estate planning, this new asset class is now so much a part of our lives as to require an in-depth conversation with your estate planning attorney, digital executor, and heirs. A recent article from The National Law Journal, “The Biggest Misconceptions About Digital Estate Planning,” explains the biggest mistakes people make with their digital estates.

Mistake 1: My will protects my digital assets. A generic clause added to your will is a good starting point. However, it could be problematic, especially if your digital assets include bitcoin. Remember, a will becomes a public document when filed with the court, so information like account numbers, private keys, passwords, or anything used to access digital accounts should never be in your will.

Without proper digital asset authorization language in your will and other estate planning documents, anyone acting on your behalf, including executors, agents under a Power of Attorney, and trustees, may lack legal rights to access digital assets. Estate planning documents must provide fiduciaries with the proper directives to allow them to access and manage digital assets. The Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) has been passed in most states and governs how assets may be accessed and managed.

Mistake 2: Service provider platforms will handle digital assets after death. This is why your father-in-law’s Halloween photograph is still on his Facebook page ten years after his passing. Platforms do not automatically transfer control of accounts, even when your digital executor has the correct documentation. They will need to follow the steps to take control of your accounts. However, they may not always have the necessary access. There are several large platforms now allowing the creation of a “legacy” contact to appoint someone to manage your account, but most do not. Your family may need to go to court to gain access—something to be avoided.

Mistake 3: I can give my passwords to my spouse or children. Every time you change your username or password, you’ll need to update the info and share it. However, that’s just the start. Many digital assets utilize two-factor authentication, which requires your face or phone to verify your identity. A photo of your face won’t work. Sharing passwords and logins violates many laws and terms of service agreements, which are the contracts you click on when downloading an app. It may not matter while you’re alive and using the platform. However, if someone wants to access your accounts if you are incapacitated or have died, your account could be locked permanently.

Mistake 4: Digital assets don’t go through probate. Digital assets are now treated just like any traditional asset when it comes to estate planning. Unless they are owned jointly, placed in a trust, or titled as payable-on-death, they are subject to probate. If the proper legal access isn’t addressed beforehand, the asset may be lost permanently because there’s no paper trail. Even an account as basic as your electric utility bill needs to be dealt with to avoid unnecessary headaches.

Mistake 5: The value of my digital assets is too small to bother with. The value of many digital assets is not in money, but in sentiment. Photos, emails and social media posts are all part of your digital legacy. Imagine if your parents’ old photo books were lost forever—your digital photos hold the same cherished memories.

Identity theft is another reason to secure and plan for your digital assets. If your account is inactive and someone hacks into it, they can use it to create fake accounts and create all kinds of digital havoc for heirs and representatives.

Mistake 6: Digital estate planning is only important for people who invest in cryptocurrency. Digital estate planning is crucial for individuals who hold digital currency. The average person today has around 160 accounts, including email, social media, online banking, cloud storage and more. Even if you die with no net worth, your family could inherit a digital scavenger hunt, which is even more challenging than sorting through endless boxes of old receipts and bank statements.

Digital assets are now part of nearly everyone’s legacy—but too often, they’re overlooked. At The Werner Law Firm, our experienced estate planning team helps clients create thorough estate plans that include digital assets, ensuring that everything from family photos to cryptocurrency is protected and accessible to loved ones. Don’t leave your family with a digital mess—plan ahead to preserve your legacy.

If you have any questions, schedule a free appointment with us through our online appointment page.

You can also read reviews from some of the hundreds of clients we have helped over the years.

Reference: The National Law Review (May 16, 2025) “The Biggest Misconceptions About Digital Estate Planning”