Why Digital Assets Matter in Modern Estate Planning

When most people think about estate planning, they picture real estate, bank accounts, and family heirlooms. But in today’s digital world, our lives extend far beyond the physical. From cryptocurrency and PayPal balances to email accounts, social media profiles, and cloud photo storage, digital assets now play a key role in the legacy we leave behind.

Yet many Iowans still overlook these assets in their estate plans, which can create confusion, loss of access, or even identity theft after death. Properly addressing your digital assets is no longer optional, it’s essential for ensuring your wishes are honored and your loved ones are protected.

So how should digital property be handled in your Iowa estate plan? Let’s walk through what counts as a digital asset, the risks of ignoring them, and the legal tools available to help you gain control.

What Counts as a Digital Asset?

Digital assets are any electronic records or content stored online or on a device. While they may not have traditional physical form, they often have significant personal or financial value.

Common digital assets include:

  • Financial Accounts: Online bank accounts, PayPal, Venmo, crypto wallets, investment platforms like Robinhood or Coinbase
  • Digital Currencies: Bitcoin, Ethereum, NFTs, and other blockchain-based holdings
  • Email & Cloud Storage: Gmail, Outlook, Dropbox, Google Drive, iCloud
  • Social Media Profiles: Facebook, Instagram, X (formerly Twitter), LinkedIn, TikTok
  • Subscription Services: Netflix, Amazon Prime, Spotify, digital gaming accounts
  • Personal Content: Photos, blogs, eBooks, YouTube videos, family history documents
  • Online Businesses: E-commerce sites, Etsy stores, domain names, monetized blogs

Some of these assets, especially financial accounts and intellectual property, may carry real monetary value. Others may hold strong sentimental worth, like family photos stored in the cloud. Either way, without the right legal access, your loved ones could lose these valuable assets forever.

The Risks of Ignoring Digital Assets in Your Estate Plan

Failing to address digital assets in your estate plan can lead to a host of problems for your heirs and executors. Some common issues include:

  • Access Denial: Family members may not be able to log into accounts or reset passwords due to strict privacy policies or encryption.
  • Loss of Value: Cryptocurrency accounts or monetized platforms may lose financial value if left untouched.
  • Emotional Loss: Cherished photos or videos could become permanently inaccessible.
  • Legal Confusion: Without clear instructions, your executor may not have legal authority to manage digital assets under Iowa law.
  • Identity Theft: Inactive or unattended accounts can become targets for hackers or scammers.

Many platforms operate under strict user agreements that prohibit third-party access, even with a death certificate. That means your executor needs specific authorization in your legal documents to handle these accounts. Otherwise, your digital life could essentially disappear, or worse, become a liability.

How Iowa Law Handles Digital Estate Access

Iowa is one of several states that has adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which governs how fiduciaries (like executors or trustees) can access a deceased person’s digital assets.

Under RUFADAA, you can give legal permission for a designated person to access your digital property. There are three tiers of authority:

  1. Online Tools: Some platforms (like Google or Facebook) offer tools that let you select a legacy contact or set account preferences after death.
  2. Legal Documents: Your will, trust, or power of attorney can name a digital fiduciary and describe what access you want them to have.
  3. Terms of Service: If you’ve done neither of the above, your account’s terms of service agreement (TOSA) will control access.

In short, if you want your executor or family to access your digital property, you must explicitly authorize it. Otherwise, they may be blocked by default.

Tips for Including Digital Assets in Your Iowa Estate Plan

Incorporating digital property into your estate plan takes thought, clarity, and legal precision. Here are five tips to get started:

1. Take Inventory

Make a detailed list of all your digital assets. Include:

  • Website or app names
  • Account usernames or emails
  • Associated financial value (if any)
  • Storage locations (cloud, device, drive)

Avoid including passwords in your will or trust, but consider storing them in a secure password manager that your executor can access with proper authorization.

2. Choose a Digital Executor

Appoint a trusted person to manage your digital assets. This person may or may not be your primary executor, but should be someone tech-savvy and organized. Grant them specific authority in your estate planning documents.

3. Include Language in Your Will or Trust

Work with your estate planning attorney to include clear language that:

  • Identifies your digital fiduciary
  • Specifies what assets they may access
  • Grants permission to bypass passwords, reset credentials, or close accounts
  • Complies with RUFADAA and applicable Iowa statutes

4. Use Online Legacy Tools

Where available, enable legacy contacts or inactive account managers on key platforms like:

  • Google Account Inactive Manager
  • Facebook Memorialization Settings
  • Apple Legacy Contact

These tools offer a strong first layer of control, though they should always be used in combination with legal documents.

5. Keep Everything Updated

Digital accounts evolve quickly. Review and update your inventory annually or whenever you open new accounts, change email addresses, or purchase digital property. Your estate plan should be a living document that reflects your online life as it grows.

Special Considerations for Cryptocurrency and Digital Businesses

Some digital assets require additional care. For instance:

  • Cryptocurrency: Without access to your private keys or seed phrases, your crypto cannot be recovered. These must be stored securely and disclosed properly in your estate planning documents.
  • Online Businesses: If you operate a blog, e-commerce store, or affiliate platform, that income stream may require succession planning just like any physical business would.
  • Digital Copyrights: If you’ve created eBooks, videos, or monetized content, you may want to address ownership rights or royalties after death.

These are not just niche cases anymore. With the rise of passive income streams and digital entrepreneurship, more Iowans are accumulating virtual wealth—and their estate plans need to catch up.

Plan Ahead With Trusted Legal Guidance

The digital world offers convenience, connection, and creativity, but it also presents new challenges for estate planning. Whether you’re safeguarding treasured memories or protecting financial assets, taking control of your digital legacy is one of the smartest moves you can make.

At Scott Shoemaker & Associates, we help Iowa individuals and families craft estate plans that reflect today’s reality. We’ll walk you through every step of securing your digital footprint, from inventory creation to document drafting. Let us help you ensure nothing valuable—digital or otherwise—is left behind.

Call 319-379-2007 to schedule your initial consultation today.