Why Your Digital Assets Deserve a Place in Your Estate Plan Today

As technology continues to reshape our lives, the definition of personal assets has expanded well beyond physical property, bank accounts, and traditional investments. In today’s digital age, an individual’s estate often includes a wide range of digital assets email accounts, cloud storage, social media profiles, online banking credentials, cryptocurrency holdings, and even loyalty rewards programs. These assets now form a significant part of one's modern legacy.

However, despite their growing value, digital assets are frequently excluded from conventional estate planning. This oversight can result in legal complications, emotional hardship for beneficiaries, and, in some cases, permanent financial loss.

As of 2025, comprehensive estate planning must account for the digital dimension of an individual’s wealth. This is particularly relevant in jurisdictions like Canada, where estate and inheritance tax regulations increasingly intersect with digital holdings.

This article explores the critical considerations for managing your digital estate, the risks associated with neglecting this aspect of your planning, and the tools and strategies available to help ensure your digital legacy is secured, accessible, and appropriately transferred to your intended heirs.

What Exactly Is a Digital Asset?

Let’s start with clarity.

Digital assets include everything from your Gmail account and Dropbox folders to cryptocurrency wallets, blog domains, e-commerce stores, online banking access, and even your YouTube channel. Some of these assets hold monetary value. Others like family photos in the cloud or final emails carry deep emotional meaning.

Here’s the problem: if you don’t document and share how to access them, most will remain locked, lost, or inaccessible forever.

Take Bitcoin, for example. As of 2025, the total market cap of cryptocurrency exceeds $1.3 trillion globally. Yet, all of that value can be lost without one essential detail: your private keys.

Or consider loyalty rewards and travel points. Many of these can be transferred to a family member if your executor knows about them and how to claim them.

The same holds true for digital bank accounts, investment platforms, and e-wallets. Without login credentials and proper instructions, your heirs may never access them at all.

The Estate Planning Gap No One Talks About

Traditional estate plans rarely include digital assets because legal frameworks haven’t caught up. Most jurisdictions don’t automatically grant executors access to online accounts. Companies like Google or Meta are bound by privacy regulations even in the event of death.

This means even if you include a digital asset in your Will, your executor may lack the authority or digital literacy to manage it effectively.

It’s not just about passwords. It’s about digital readiness.

To address this, we recommend naming a Digital Executor someone separate from or in addition to your main executor who understands tech and can follow instructions to secure your digital estate.

Your Action Plan: How to Future-Proof Your Digital Legacy

Managing digital assets doesn’t have to be overwhelming. Start with these key steps:

1. Create a Digital Inventory
   List all your online accounts, platforms, subscriptions, and digital valuables from cloud storage to crypto wallets.

2. Assign a Digital Executor
   Choose someone tech-savvy and trustworthy to manage your online presence and digital property. Clearly outline their responsibilities.

3. Secure Access
   Use password managers (like LastPass or 1Password) and digital vaults to store login credentials, access codes, and private keys. Keep these tools updated.

4. Be Explicit in Your Wishes
   Outline what should happen to each account. Should your social media be deleted or memorialized? Should a final message be posted?

5. Review Company Policies
   Not all platforms allow transfers. For example, some loyalty programs require a death certificate and specific forms. Plan accordingly.

6. Consider Tax and Legal Ramifications
   Digital income from platforms like YouTube or influencer accounts should be included in your estate planning. In Canada, TOSI (Tax on Split Income) rules could apply.

7. Don’t Forget Devices
   Emails, financial documents, and multi-factor authentications often live behind physical devices. Make sure your executor can access them.

What’s at Stake?

• Photos and memories that could be lost forever.

• Financial assets like crypto or rewards points going unclaimed.

• Social media accounts that become points of confusion or conflict among family members.

• Online income streams (e.g., monetised YouTube or Instagram accounts) that continue earning after death, without direction or access.

• Sensitive personal data exposed to cyber risks if not securely managed.

• As Melanie McDonald, VP at BMO Trust Company, rightly said: “The executor has all the power… so you really want to be careful that you pick the right executor and give them clear instructions.”
  
  

Managing High-Value Digital Assets in Estate Planning

As digital income and assets grow in value, incorporating them into your estate plan is essential. For households earning from platforms like YouTube or digital businesses, strategies such as income splitting in Canada may offer tax benefits making proper planning even more important.

Email and Device Access
Emails and device-based two-factor authentication often guard key financial data. Ensure login details are securely documented and included in your estate plan.

Outdated Devices
Old phones or laptops may still contain valuable files. Regularly review and transfer important data before disposal.

Loyalty Points and Rewards
Programs like airline miles or credit card points may be transferable. Check each provider’s policy and include instructions in your will.

Cryptocurrency
Access to crypto wallets depends on private keys. Store credentials securely and share access details in your estate documents.

Monetized Social Media
Accounts generating income, such as YouTube or Instagram, should be treated as financial assets. Document access and revenue structures clearly.

TOSI Considerations
Digital income passed to beneficiaries may trigger Canada’s TOSI rules. Seek professional advice to plan accordingly.

Planning for digital assets now helps protect your legacy and ensures your beneficiaries have access when it matters most.

This Isn’t Optional Anymore

In today’s digital age, online assets such as emails, loyalty points, and cryptocurrency must be treated with the same care as physical ones in your estate plan. Without proper access, beneficiaries risk losing valuable digital property.

Appoint a tech-savvy executor and provide secure, written instructions for accessing digital accounts. Since legal access isn’t automatic in many jurisdictions, proactive planning is essential.

Just as you would with financial tools like a spousal loan strategy, ensure your digital assets are clearly documented and protected. A complete digital estate plan offers peace of mind and preserves your legacy for the future.