Digital Assets And Estate Planning In New York

In today’s world, our lives are deeply connected to the digital space, from storing photos on the cloud to email, online banking, and cryptocurrency. Yet many people overlook these items when creating an estate plan. That’s why digital assets estate planning in New York is no longer optional. It’s an essential part of protecting your legacy and ensuring loved ones can access important accounts and memories after you’re gone. In this article, we’ll cover…

• What types of data count as “digital assets”.
• Whether you can name someone to handle these accounts after you’re gone.
• The best ways to properly inventory and protect your digital assets.

What Are Digital Assets In Estate Planning, And Why Should I Include Them In A Will Or Trust?

“Digital assets” can mean a lot of things today. Generally, they refer to any electronic records or online accounts that hold value, whether financial, personal, or sentimental. That includes:

• Email accounts and correspondence
• Online banking and brokerage accounts
• Cryptocurrencies, NFTs, and digital wallets
• Accounts tied to PayPal, Venmo, and other payment platforms
• Business domains, websites, and monetized YouTube channels
• Digital photos, whether iCloud or Google photo libraries
• Streaming accounts and purchased media

Most seniors think only of cryptocurrency or online banking, but some of the most important digital assets are personal, such as email archives or family photos stored online.

There was even a landmark case in Massachusetts involving a professional photographer whose valuable raw image files were stored in a Yahoo email account. When the photographer passed away, Yahoo refused to release access to the estate’s personal representative (we refer to them in NY as executors). The case reached the Supreme Judicial Court of Massachusetts, which ruled that executors should have access to such assets and Yahoo was not prohibited from providing such access. That decision led many states to develop specific digital asset inheritance laws, giving executors clearer rights and procedures.

Ignoring digital assets is like leaving a locked safe without the combination, where your heirs know something valuable is inside, but they can’t reach it.

How Can I Best Structure My Digital Assets For A Future Executor?

Today, many digital and financial accounts are increasingly regulated and structured like traditional investment accounts. For example, cryptocurrency platforms such as Coinbase or Robinhood now require user registration, allowing account holders to list beneficiaries or authorized users. This move toward regulation helps make digital assets easier to manage within the framework of estate law. However, there’s still inconsistency across companies.

That’s why it’s critical to keep a secure record of your accounts and logins. Don’t write passwords on paper. Use a secure password manager or digital vault instead. Even for those who are tech-savvy, keeping track of dozens of logins is challenging, and without an organized list, your executor could face major obstacles later.

Paul Hyl and Arthur Conte of Hyl Conte Law, PLLC in New York are seasoned estate planning and elder law attorneys who understand that modern legacies extend far beyond paper and property.

With extensive experience helping clients organize, protect, and transfer digital assets such as online accounts, cryptocurrency, and cloud-based data, they ensure that families can access what matters most. Their forward-thinking approach integrates evolving technology with proven legal strategies to secure your digital and personal legacy.

Contact Hyl Conte Law, PLLC today to safeguard your digital life for the next generation.

Can I Legally Authorize Someone To Manage My Digital Legacy In New York?

New York law now allows individuals to grant access to digital assets through their will, trust, or power of attorney. Attorneys typically include specific “digital asset” language in these documents, giving executors, trustees, and agents the authority to access, manage, or distribute online accounts and information.

While these provisions work in most cases, some companies still resist releasing access, so it’s also wise to:

• Keep a detailed inventory of your digital assets.
• Store account information securely in a password vault or encrypted file.
• Give trusted family members or your attorney access instructions.

Ultimately, your executor or trustee will handle these accounts essentially the same way they handle traditional assets, that is, following the instructions in your will or trust. However, because this area of law is still evolving, preparation and documentation are especially key.

What Should I Include In A Comprehensive Digital Asset Inventory For Estate Planning?

Start with the accounts that control everything else:

• Email accounts (these are the gateway to nearly every other login).
• Cell phone carrier accounts, since phone numbers are often used for two-factor authentication.

If you use Apple or Android devices, both systems now let you name a Legacy Contact who can access your data after your death. You can also set up legacy contacts on Facebook, Instagram, and other social media platforms. These features allow your chosen person to manage your account or memorialize it after your passing.

For example, my own Apple ID contains photos, contacts, notes, and important information. I’ve listed my wife and sister as my legacy contacts so they won’t lose access if something happens to me. Setting this up ensures your loved ones aren’t left lost in the sauce, trying to untangle your digital life.

Notes From The Field : Awareness Is Key

Many of us don’t fully grasp just how complex our digital lives are. And once our clients start listing out their accounts from email to social media, subscriptions, cryptocurrency, and online photos, they quickly realize how many things they’ve overlooked. I often joke that it turns into homework because people leave the meeting realizing there’s a lot more to document than they expected. But that’s a good thing. Awareness is the first step toward protecting those digital assets for your loved ones.

Still Have Questions? Ready To Get Started?

For more information on digital assets and estate planning in New York, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (631) 483-7796 today.