Digital Estate Planning Mistakes—and How to Avoid Them

As our lives move further online, digital assets have become just as important in estate planning as homes, bank accounts, and retirement funds. From cryptocurrency to cloud storage, these assets require careful planning to protect both their financial value and personal significance.

A recent article from The National Law Review, “The Biggest Misconceptions About Digital Estate Planning,” highlights the most common mistakes people make regarding digital assets—and how you can avoid them.

Mistake #1: Assuming Your Will Covers Digital Assets

Many people believe that adding a simple clause in their will is enough to protect their digital assets. However, this can create serious risks—especially for sensitive assets like cryptocurrency.

Wills become public documents after your death, meaning account numbers, passwords, and private keys should never be listed in them. Instead, your estate plan needs to include specific legal language granting your fiduciaries—such as executors, agents under Power of Attorney, or trustees—the authority to access and manage digital accounts.

Most states now follow the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which governs how digital assets can be handled after death.

Mistake #2: Believing Online Platforms Will Automatically Transfer Accounts

Many assume that online platforms will smoothly hand over digital accounts after someone passes away. In reality, platforms often refuse to release control, even with legal documentation.

Some platforms offer options to name a “legacy contact,” but many still do not. Without proper planning, your family may face long legal battles or lose access entirely.

Mistake #3: Simply Sharing Passwords with Family

It may seem easy to just leave your passwords with a spouse or child—but this method has serious flaws.

Passwords change frequently, and many accounts use two-factor authentication tied to your phone or face recognition. Moreover, sharing login credentials can violate laws or terms of service agreements, locking out your heirs.

Mistake #4: Thinking Digital Assets Skip Probate

Digital assets are treated like traditional assets in probate. Unless they are placed in a trust, owned jointly, or have payable-on-death designations, they’ll go through the court process.

Without proper planning, heirs may be locked out of valuable or essential accounts, from cryptocurrency wallets to utility bills—sometimes permanently.

Mistake #5: Believing Digital Assets Aren’t Valuable Enough to Plan For

Not all digital assets hold financial value—but many hold deep sentimental worth. Photos, emails, and social media memories form part of your digital legacy.

Neglecting these assets could mean losing cherished memories forever. Additionally, unmonitored accounts are vulnerable to hacking and identity theft.

Mistake #6: Thinking Digital Estate Planning Is Only for Crypto Investors

Digital estate planning isn’t just for those with Bitcoin. The average person today has around 160 online accounts—including emails, social media, online banking, streaming services, and cloud storage.

Without a plan, your family could be left with a confusing digital scavenger hunt—far more frustrating than sorting through old paperwork.

Protect Your Digital Legacy

Digital assets are now a part of almost every person’s estate—but they’re often overlooked. At The Werner Law Firm, our knowledgeable estate planning attorneys help clients create comprehensive estate plans that include digital assets, ensuring everything from cryptocurrency to treasured family photos is protected and accessible to loved ones. Don’t leave behind a digital mess. Plan ahead to secure your digital 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”