Published: December 10, 2025
Author: Darryl V. Pratt, JD, CPA

Estate planning traditionally focuses on physical assets such as money, real estate, and personal possessions. However, in today’s digital age, an increasing portion of our lives exists online. From online banking accounts and digital files to social media profiles and cloud-stored photos, these digital assets are often overlooked in estate planning. Without proper planning, confusion and legal complications can arise regarding access and management of these assets after your passing. Incorporating a digital estate plan into your overall estate planning ensures your loved ones know what digital assets you own and how you want them handled.

What Is a Digital Asset?

Under the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), adopted in Texas, digital assets are defined as electronic records in which individuals have a right or interest. These assets encompass a wide range of items, including:

• Finance-related assets: Online banking accounts, credit cards, cryptocurrency, and non-fungible tokens (NFTs). Note that the underlying financial assets themselves (e.g., funds in a bank account or Bitcoin) are considered physical assets and are part of a traditional estate plan.
• Business-related assets: Online utility accounts, company websites, domain names, and digital intellectual property.
• Personal assets: Blogs, email accounts, social media profiles, and cloud-stored photos.

Digital assets are increasingly valuable, both financially and sentimentally, making it essential to address them in your estate planning.

What About Online Music, Books, and Video Collections?

Many online collections of music, books, and movies are licensed rather than owned outright. This means you cannot transfer ownership of these materials to your heirs. However, you may be able to pass on the same rights you have—such as listening, reading, or watching—depending on the service agreements you signed with each platform. Reviewing these agreements is essential to understand what can and cannot be transferred.

What Is a Digital Estate Plan?

A digital estate plan is a comprehensive document that lists all your digital assets, provides access information (e.g., usernames and passwords), and specifies how you want each asset handled after your death. For example, you may want your spouse or children to access your online photos but not your social media accounts. A digital estate plan also allows you to appoint a digital executor to ensure your wishes are carried out.

Digital Estate Plan vs. Last Will and Testament

A digital estate plan is informational and does not grant legal ownership of assets. A will, on the other hand, deals with physical property you own, such as your home, vehicle, and money, and allows you to transfer legal ownership of those assets to your heirs. While a digital estate plan complements your will, it serves a distinct purpose by addressing assets that are not covered under traditional estate planning.

Connecting Your Digital Estate Plan to Your Will

Adding a provision in your will referencing your digital estate plan ensures it is not overlooked. If your will is already finalized, you can add a codicil (a legal document that amends or supplements your will) to reference your digital estate plan. This connection ensures that your digital assets are managed according to your wishes and that your heirs are aware of the plan’s existence.

Why Create a Digital Estate Plan?

Even if you have a will, there are several compelling reasons to create a digital estate plan:

• Privacy: Listing digital assets and passwords in your will makes them public upon your death. A digital estate plan remains private and secure.
• Flexibility: You can update a digital estate plan as often as necessary without revising your will, saving time and costs.
• Legal Compliance: Simply giving your heirs a list of accounts and passwords may violate federal and Texas laws on unauthorized computer access. A digital estate plan ensures compliance and protects your heirs from potential legal issues.

Limitations of RUFADAA

While RUFADAA provides fiduciaries legal authority to manage digital assets, it may not fully align with your wishes. For example:

• RUFADAA grants access to all online accounts to the executor named in your will, which may not be your preference. A digital estate plan allows you to appoint a digital executor and specify access for each asset.
• You may want certain accounts deleted or deactivated upon your death, which RUFADAA does not address.
• RUFADAA provides access to a list of online communications but not their content unless prior consent is given. A digital estate plan ensures your fiduciary has access to the content if desired.

Dead Man’s Switch Tools

Some online platforms, such as Google and Facebook, offer tools to manage accounts after death. These tools override RUFADAA and your digital estate plan, so it is essential to update them to align with your wishes. For example, Google’s Inactive Account Manager and Facebook’s Legacy Contact allow users to designate successors for their accounts. Regularly reviewing and updating these settings ensures consistency with your overall estate plan.

How to Create a Digital Estate Plan

Follow these steps to create a comprehensive digital estate plan:

1. Create a digital asset inventory: List each digital asset and its login information. Review service agreements for measures to ensure access after your death.
2. Decide how each asset should be handled: Specify who should have access to each asset and which accounts should be deleted or deactivated.
3. Appoint a digital executor: Choose someone comfortable with technology to manage your digital assets. If different from your will’s executor, ensure both individuals are aware of their roles and can collaborate effectively.
4. Make it legally binding: Consult your estate planning attorney to ensure your digital estate plan complies with Texas law. Reference the plan in your will or codicil to provide legal recognition.
5. Store your plan securely: Keep your digital estate plan in a safe place, such as a locked filing cabinet or with your attorney. Inform your executor and digital executor of its location.

Subsequent Steps: Communicate and Update

Once your digital estate plan is complete, inform your family about the plan and update it regularly as you acquire or delete online accounts. Use general language in your will or codicil to accommodate updates, ensuring your plan remains relevant over time.

Ensure Your Digital Assets Are in Good Hands

As Texans continue to develop a greater online presence, estate planning attorneys must understand digital estate plans and their implications under Texas law. Protect your digital legacy by creating a comprehensive digital estate plan today.

Contact our offices at (888) 517-4575 for assistance with your estate planning needs.