How to Handle Digital Assets and Passwords in a California

Estate planning isn’t just about bank accounts and real estate anymore. In today’s digital age, online accounts, passwords, cryptocurrency, and cloud storage are valuable components of a person’s legacy. Yet, many people overlook digital assets when preparing their estate plan—leaving loved ones unable to access important files, financial tools, or even sentimental photos.

In California, estate plans must now account for these digital elements. Here’s how to secure and transfer your digital assets the right way under current laws.

What Are Digital Assets?

Digital assets include any electronic records or accounts owned or controlled by an individual. These may include:

• Email accounts (Gmail, Outlook)

• Social media profiles (Facebook, Instagram, Twitter/X)

• Cloud storage (Google Drive, Dropbox)

• Online banking and investment platforms

• Cryptocurrency wallets (Bitcoin, Ethereum, NFTs)

• Photos, videos, or documents stored online

• Online business tools (domain names, e-commerce stores)

• Streaming or subscription services (Netflix, Spotify)

These assets may have financial, sentimental, or practical value—and they can be lost forever if not addressed in your estate plan.

California Law and Digital Assets

California follows the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), codified in California Probate Code §§870–884.

Key Points:

• A fiduciary (executor, trustee, agent under power of attorney) may request access to digital assets.

• The account holder’s consent must be clearly stated in the estate documents.

• Providers (like Google or Apple) are only required to grant access if authorized under the decedent’s will, trust, or power of attorney.

Bottom line: If your documents are silent on digital assets, your executor may be legally blocked from accessing them.

How to Protect and Pass on Digital Assets

1. Make a List of Your Digital Assets

Create a secure inventory of all important digital accounts, including:

• Login URLs

• Usernames

• Email recovery accounts

• Cryptographic keys or wallets

• Passwords (or location of password manager access)

Keep this list secure, but accessible to your fiduciary.

2. Use a Password Manager

Tools like 1Password, LastPass, or Dashlane allow you to store all credentials in one encrypted vault. Leave instructions in your estate plan on how to access the vault in case of your death or incapacity.

3. Include Digital Asset Provisions in Your Estate Plan

Update your:

• Will

• Revocable Living Trust

• Durable Power of Attorney

Make sure each document explicitly authorizes your agent or executor to manage your digital assets, as required by California Probate Code §874.

4. Name a “Digital Executor” (Optional but Helpful)

While California doesn’t formally recognize a “digital executor,” you can name a trusted individual in your will or trust to handle only your digital accounts. This person should be:

• Tech-savvy,

• Trustworthy,

• Familiar with your digital footprint.

They’ll work alongside your legal executor to close, preserve, or transfer digital accounts.

5. Use In-Platform Legacy Tools

Some services allow you to name a legacy contact directly:

• Facebook: Choose a legacy contact to manage your memorialized account.

• Google: Use the Inactive Account Manager to assign someone access.

• Apple: Add a Legacy Contact to your iCloud account.

• Crypto wallets: Use dead man switches or estate-planning platforms like Casa or BitTrust IRA.

Example: What Happens Without a Digital Plan?

Imagine your spouse passes away with $10,000 in cryptocurrency and hundreds of irreplaceable family photos stored in iCloud. Without a will or trust authorizing access, and without the login credentials, you may never gain access. The provider can legally deny your request—even with a death certificate.

This risk is completely avoidable with a proper digital asset plan.

Final Thoughts

As your life becomes increasingly digital, your estate plan must evolve to protect these valuable online assets. Whether you’re a social media user, crypto investor, or simply someone with family photos in the cloud, it’s essential to document and secure your digital legacy.

To ensure compliance with California’s digital asset laws, and to avoid locking out your loved ones, consult a qualified California estate planning attorney to review or update your will, trust, and power of attorney documents.

Contact the top-rated California trust and probate attorneys Moravec, Varga & Mooney today to schedule a telephonic consultation. Have questions? call (626) 460-1763 or email LV@MoravecsLaw.com.

Southern California Probate Lawyer Serving all counties in California, including Los Angeles, Riverside, San Bernardino, Sacramento, Santa Cruz & Beyond.