How to Protect Digital Assets in Your New York Estate Plan: Cryptocurrency, Online Accounts & More

When Sarah’s father passed away in 2023, she inherited his house, his car, and a problem: $50,000 in Bitcoin she couldn’t access. His will never mentioned the cryptocurrency wallet, and the password died with him.
This scenario plays out across New York every day. Your will might cover your home and bank accounts, but what about your cryptocurrency, online business, digital photos, and social media accounts? Without proper digital assets estate planning, these valuables can disappear forever—or trigger costly legal battles.
As experienced New York estate planning attorneys, we’ve helped hundreds of families protect both traditional and digital assets. Here’s what you need to know to safeguard your complete legacy. For more information on the legal framework governing digital assets after death, visit the New York Courts resource page.

Understanding Digital Assets in Estate Planning

What Counts as a Digital Asset?

Digital assets include anything of value that exists in electronic form. This encompasses cryptocurrency holdings, online financial accounts, subscription services, email accounts, digital photos and videos, social media profiles, online businesses, loyalty program points, and intellectual property stored digitally.

Why Digital Assets Need Special Attention

Unlike physical assets, digital property often comes with:

• Password protection

• Terms of service agreements that may prohibit transfer

• Encryption that makes access impossible without proper credentials

• No paper trail or physical evidence of ownership

• Different legal treatment than traditional property

Creating a Complete Digital Assets Inventory

The first step in digital assets estate planning is creating a thorough inventory. List all your digital assets, including:

• Cryptocurrency wallets and exchange accounts

• Online banking and investment accounts

• Email accounts

• Social media profiles

• Digital media libraries

• Cloud storage accounts

• Online shopping accounts

• Subscription services

• Domain names

• Online businesses

• Loyalty programs

For each asset, document:

• The platform or location

• Account numbers or identifiers

• Username

• Password or access method

• Two-factor authentication details

• Approximate value

• Your wishes for each asset

Legal Protection for Digital Assets in New York

New York’s Digital Asset Laws

New York follows the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which provides a legal framework for executors to access digital assets. However, this law has limitations and works best when combined with proper estate planning documents.

Essential Documents for Digital Asset Protection

A comprehensive plan for your digital inheritance in New York should include:

1. Will with Digital Asset Provisions: Your will should specifically mention digital assets and name who will manage them.

2. Digital Asset Authorization: Create a document that explicitly authorizes your executor to access, manage, and distribute your digital assets.

3. Power of Attorney with Digital Asset Provisions: Ensure your power of attorney includes language about managing digital assets if you become incapacitated.

4. Password Manager or Digital Vault: Consider using a secure system to store access information that your executor can access when needed.

Cryptocurrency Estate Planning in New York

Cryptocurrency presents unique challenges for estate planning:

• It exists only digitally with no physical form

• Access requires private keys that aren’t recoverable if lost

• Its value can fluctuate dramatically

• Tax treatment remains complex

Working with a New York estate planning attorney familiar with cryptocurrency is essential. Your plan might include:

• Cold storage solutions with documented access procedures

• Multi-signature wallets requiring multiple approvals

• Dead man’s switch mechanisms

• Detailed instructions for your executor

Protecting Online Accounts After Death

Many online services have their own posthumous access policies:

• Google’s Inactive Account Manager

• Facebook’s Legacy Contact

• Apple’s Legacy Contact

Review the terms of service for your important accounts and designate legacy contacts where possible. Document these choices in your estate plan.

Practical Steps to Take Today

1. Inventory all digital assets with account details and approximate values

2. Consult with a New York estate planning lawyer experienced in digital assets

3. Update your will and power of attorney with specific digital asset provisions

4. Create a secure system for sharing access information with trusted individuals

5. Review and update regularly as you acquire new digital assets

How a New York Estate Planning Attorney Can Help

A knowledgeable estate planning lawyer in New York can:

• Draft legally binding documents that address digital assets

• Create strategies for cryptocurrency protection

• Navigate the complex legal landscape of digital property

• Help balance security with accessibility

• Ensure your wishes for digital assets are legally enforceable

Contact Us for Digital Asset Protection

Don’t let your digital legacy disappear or become a burden for your loved ones. Our firm specializes in protect digital assets will creation and management, with particular expertise in cryptocurrency estate planning New York residents can trust.

Contact our office today to schedule a consultation with an experienced estate planning lawyer New York families rely on. We’ll help ensure your complete estate plan protects everything you value, both tangible and digital.