What Are Digital Assets?

July 9th, 2025

According to Investopedia a digital asset is “anything that is created and stored digitally, is identifiable and discoverable, and has or provides value.” Examples of digital assets include computer files, web domains, items stored “in the cloud,” and cryptocurrencies such as Bitcoin, Ethereum, and more. Emails, text messages, social media accounts, digital photos, and digital music are also digital assets as defined by the Revised Uniform Fiduciary Access to Digital Assets Act. 

Some digital assets have a monetary value. For example, an internet domain name is a financial asset as well as an electronic record. Similarly, a social media username may have significant monetary value if it is associated with a popular “influencer” or brand. Other digital assets with an economic value include:

• Social media accounts such as Facebook (Meta), Instagram, Twitter (X), Linkedin, Substack, Bluesky, TikTok
• Cryptocurrencies 
• Non fungible tokens
• Loyalty points from airlines, hotels, and credit cards.
• Balances in Paypal or Venmo accounts
• Online gaming credits
• Digital gift cards
• Digital storefronts like those found on eBay or Etsy.
• Music and/or videos on platforms such as YouTube or TikTok.
• Websites where personal documents, or information is loaded
• Email accounts

Bank and credit card account log-ins have no intrinsic monetary value. However, anyone with access to them can gain entry into various financial instruments, so they have value in that sense. Similarly, any account that you manage or pay online may allow access to your personal financial information, so that information is an important part of your digital legacy. 

Legally, digital assets belong exclusively to those who own them and are protected by strict privacy laws. However, as our collective and individual digital footprints have expanded over the last few decades, the security of digital assets has become more difficult to ensure. As a result, virtually all digital assets are, at minimum, password protected, and many require two-factor authentication (usually a code sent to a cell phone or email address) before anyone may access them. Additionally, bitcoin and non-fungible tokens are housed on a blockchain, an extremely secure database that is nearly impermeable to cyberattacks. 

Digital Death

When a person dies, their “real” property is generally distributed by the estate executor in accordance with the terms of a will or a trust.The process of doing so is dictated a court-supervised process known as probate, through which the assets of a deceased person are identified, debts are  paid, and assets are distributed to heirs and beneficiaries. Virtually every state in the U.S. has laws that regulate the probate process in order to ensure that estates are managed legally, ethically and appropriately. 

With that being said, state probate laws apply exclusively to traditional property, such as real estate, personal property, bank accounts, vehicles, etc. and make no provision for the management of digital assets. As use of the internet and digital technology has become more widespread over the last several decades, this gap in probate law has created serious issues for estate executors and surviving family members. Since no clear legal path existed for the companies who controlled the assets to allow access to anyone but the account owner, many digital assets were untouchable by anyone but the deceased account holder and simply disappeared.

In 2012, the Uniform Law Commission, a nonprofit organization of lawyers that works to provide states with model legislation that brings “clarity and stability to critical areas of state statutory law” determined that regulatory clarity around digital assets was an urgent priority across the U.S. The commission began to work on model legislation outlining how fiduciaries could legally access and manage digital assets. It named the legislation the Uniform Fiduciary Access to Digital Assets Act. 

The first iteration of the UFADAA was completed in 2014. It granted fiduciaries, including executors, the right to manage digital assets in the same way they manage traditional assets after a person dies or becomes incapacitated. The act granted executors, conservators and trustees almost unlimited power to access digital assets, including the right to obtain passwords and other login information for digital accounts from the custodians of those accounts. The idea behind the law was to give fiduciaries the ability to handle all of the tasks related to settling the estate, such as archiving or deleting email, paying bills online, canceling subscriptions and social media accounts and so on, legally and expeditiously. 

Unfortunately, the original version of the UFADAA met with stiff opposition from both tech companies who were the custodians of the assets and privacy advocates such as the ACLU. As a result, only one state, Delaware, adopted the law. To address the many concerns, the ULC went back to the drawing board and crafted a revised version of the UFADAA known as the Revised Fiduciary Access to Digital Assets Act. The later version of the law differed from the original in several significant ways. For example:

• An executor no longer has the right to access electronic communications (private email, tweets, chats), unless the deceased person explicitly consented to disclosure in a will, trust or through a durable power of attorney.
• An executor can access other types of digital assets, but must petition the court and explain why the asset is needed to settle the estate.

• If a fiduciary does not have explicit permission through a will, trust, or power of attorney, custodians can use their own terms-of–service agreements to determine whether to comply with requests for access to a deceased person’s account.
• Custodians have broad powers to limit access to digital assets, including the right to
  • Request court orders 
  • Provide access only to assets it determines are “reasonably necessary” to settle the estate
  • Charge the estate a fee to comply with requests for access
  • Refuse requests it deems to be “unduly burdensome”
  • Refuse access to joint accounts

The ULC finished drafting the revised law in 2015, and the revisions were sufficient to satisfy both the ACLU and the tech companies who objected to the original law. As of 2024, 46 states have adopted the RUFADAA. (California, Oklahoma, Louisiana and Massachusetts have not.)

Beyond the RUFADAA

Despite the existence of the Revised Uniform Fiduciary Access to Digital Assets Act, access to digital assets by executors is hardly guaranteed under the law. For that reason, experts advise anyone who owns a digital asset (virtually everyone!) to plan ahead for what will happen to them after their death. According to Nolo, the best way to ensure your wishes are carried out is to take the following steps:

• Explicitly give your executor access to your digital assets in your will or power of attorney
• Write a personal letter to your executor telling them exactly how to access all of the accounts and files you want them to handle after your death. The letter should include:
  • The names and urls for all of your online accounts 
  • Usernames and passwords
  • Access for two-factor authentication (e.g. an email account or a cell phone)
  • Specific instructions as to what to do with each asset (for example, transfer photos; delete emails; create a legacy account on social media)
  • Store your letter in a safe location, preferably with your other important documents such as your will, advanced directives and insurance policies. DO NOT store it in a safe deposit box, since the executor will not have immediate access to it.
  • Update the letter as you add and delete accounts and assets
• If you want to protect the privacy of certain assets after you die, contact an attorney for assistance. They may be able to add a clause in your will that specifies which digital assets or accounts you do not want accessed after your death. 

Digital Estate Planning

Prior to the explosion of internet technology in the 20th and 21st centuries, most estate planning was aimed at protecting tangible property and financial assets from taxes and creditors and ensuring their transfer to family members after a person’s death. However, the internet has created an entire universe of digital assets that need to be identified, organized, and recorded so that they can be bequeathed to your beneficiaries after your death. Digital estate planning is the process through which individuals can accomplish this. 

The first step in digital estate planning is identifying what digital assets you own. This process can be painstaking and time-consuming, so you may wish to do it over a number of days or even weeks. 

There are no strict guidelines as to how to begin to catalog your digital assets, but you may wish to begin by listing any digital assets with monetary value that you own. This can include:

• Cryptocurrency. There are many forms of digital currency available, so make certain you list all of them. As of 2024, the most popular are:
  • Bitcoin
  • Tether (USDT)
  • Ethereum (ETH)
  • XRP
  • Binance Coin (BNB)
  • USD Coin (USDC)
  • Cardano (ADA)
  • Solana (SOL)
  • Dogecoin (DOGE)
  • Tron (TRX)
  • Polygon (MATIC)

• Nonfungible tokens such as tokens for digital art or music 
• Internet domains
• Online payment services such as Venmo and PayPal (if they have a positive balance)
• YouTube or TikTok channels (if the content is monetized)
• Digital rights to books, films, music or theatrical works
• Digital accounts in an online betting forum
• Blog content (if monetized)
• Airline miles and hotel points
• Gaming avatars that offer online goods or services with monetary value in the real world
• Digital storefront such as EBay and Etsy

Once you have listed all your assets with monetary value, catalog your other online accounts and items stored in the cloud. Generally, these will include:

• Social media accounts, including Facebook, Instagram, What’sApp, SnapChat, YouTube and TikTok
• Email accounts
• Online subscriptions to magazines, journals and news media
• Digital files stored in the Cloud, including photos, videos, personal files and records etc. List all of the platforms where you have data stored: These may include:
  • Microsoft OneDrive
  • Apple iCloud
  • Google Drive
  • Drop Box
  • Sync
  • iDrive
  • pCloud
  • MEGA
  • Box
• Financial accounts with an online component, such as utilities, cell phone plans streaming services (Netflix, Prime Video, HBO Max, Apple TV etc.)
• Online bank accounts (checking, savings, money markets, CDs)
• IRAs and other retirement accounts
• Auto, health and life insurance policies

Once you have identified all of your digital assets and accounts, determine what you would like done with them after your death. Assets with monetary value can be left to your heirs in your will, but you will need to provide access to your executor so he can distribute them after probate (if applicable) is settled and bills and taxes are paid. For most digital assets, this means that you will need to have your login credentials (username and passwords) in a secure location where your executor can access them. This can be accomplished in a number of ways:

• Write your usernames and passwords in a notebook and store it in the same location as your will and other important documents. If any of your digital accounts require two-factor authentication, you will need to ensure that the device that will authenticate the login is accessible, as well. For example, if your bank sends a text with an access code to your cell phone when you login, your executor will need access to that phone. They may also need a passcode to access the phone if you have set one up.  
• Use a password manager such as LastPass or 1Password. These applications store all of your passwords and logins securely, and can be accessed with a single master password, so you only need to convey one login to your executor upon your death.
• For email: In order to ensure that your executor can legally access your email accounts (and the notices and communications they contain) you must grant them specific permission in your will even if you have provided them your passwords. List all email accounts separately to ensure there is no dispute about which accounts you want them to access.  

Special Considerations for Cryptocurrency and NFTs

Unlike most digital assets, which are managed by custodians (e.g.,  companies that ensure the asset is stored securely on an encrypted network), cryptocurrency and non fungible tokens are located on a blockchain, a digital database stored on individual computers (or nodes) on a peer-to-peer network. There is no overarching entity managing the database, and there is virtually no way that anyone other than an asset owner in possession of unique identifiers (or “keys” ) can access it. For this reason, cryptocurrency is extraordinarily secure, but it is also very tricky to pass on to your heirs after you die.

Additionally, most individuals store their cryptocurrency in a non-custodial digital wallet — a secure location where cryptokeys are stored. (These are different  from a crypto exchange, where a third party oversees the account.) These wallets can either be “hot” (connected to the internet) or “cold” – stored on a separate hardware device. In either case, you will need to ensure that your executor or next of kin has access to the login information for the wallet as well. 

To ensure the security of your cryptocurrency and make it accessible to your next of kin when you die, experts recommend that you write down your access keys (typically a public and personal key) for each asset, and list all of the digital wallets in which your crypto is stored. Write down the usernames and passwords for those accounts and devices as well. Then store the written information in a secure location such as a safe deposit box, and leave a letter with instructions for your executor as to where the information is being kept. In this way, no one other than a person authorized to access your safe deposit box can access your cryptocurrency keys. 

Special Considerations for Social Media Accounts

With the proliferation of social media platforms over the last decade, it has become increasingly important to understand the terms of service of any platform on which you have an account. As the custodians of your online presence, social media companies such as Metta and X have a great deal of control over how your information, including your posts, contact lists, photos and other media, is handled after your death. Even if you provide your login credentials to your next of kin, they may not be able to legally access your account information unless you have specifically authorized them to do so in your will or through a feature provided by the custodian of the account (e.g. Google’s inactive account manager.) For this reason, it is important to list all of your social media accounts in your will and expressly grant or deny access to them by your executor and next of kin. And, of course, include your passwords as well. 

In conclusion, as our lives become increasingly intertwined with the digital realm, the management of digital assets is a vital component of responsible end-of-life planning. Recognizing the diverse nature of these assets and the potential challenges they pose for grieving loved ones, it is imperative to approach estate planning with a comprehensive strategy that includes provisions for your digital legacy. By proactively addressing the fate of online accounts, cryptocurrencies, and other digital assets, individuals can provide their heirs with the tools and access needed to navigate the complexities of the digital afterlife. In doing so, they not only ensure the preservation of their digital identity but also contribute to a more seamless and considerate transition for those left behind.

Sources

“What Are Digital Assets? Definition, Types, and Their Importance”. Investopedia. https://www.investopedia.com/terms/d/digital-asset-framework.asp

“The Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA)”. Nolo. https://www.nolo.com/legal-encyclopedia/ufadaa.html

“Fiduciary Access to Digital Assets Act, Revised”. Uniform Law Commission. https://www.uniformlaws.org/committees/community-home?CommunityKey=f7237fc4-74c2-4728-81c6-b39a91ecdf22

“10 Important Cryptocurrencies Other Than Bitcoin”. Investopedia. https://www.investopedia.com/tech/most-important-cryptocurrencies-other-than-bitcoin/

“Blockchain Facts: What Is It, How It Works, and How It Can Be Used”. Investopedia. https://www.investopedia.com/terms/b/blockchain.asp

“How to Get a Crypto Wallet”. NerdWallet. https://www.nerdwallet.com/investing/learn/get-a-crypto-wallet

“Set up your Inactive Account Manager”. Google Guidebooks. https://guidebooks.google.com/online-security/protect-your-google-account/inactive-account-manager