In today’s digital world, estate planning isn’t just about real estate, investments, and physical belongings—it’s also about what happens to your digital footprint when you’re gone. From social media accounts to online banking, loyalty points, and digital photo albums, our digital assets hold financial and sentimental value, making it crucial to plan for them as part of your estate.

Let’s explore why digital estate planning is becoming more important and how you can take steps to ensure your online presence and digital assets are properly managed when the time comes.

What Are Digital Assets?

A digital asset is any electronic record that has financial or sentimental value. These assets are typically stored online, on devices, or within cloud-based platforms. Examples include:

✅ Online banking, investment, and cryptocurrency accounts
✅ Loyalty points (airline miles, hotel rewards, cashback rewards)
✅ Social media accounts (Facebook, Instagram, LinkedIn, Twitter)
✅ Email accounts and personal blogs
✅ Digital subscriptions (Netflix, Spotify, e-books, online courses)
✅ Photos, videos, and personal documents stored on the cloud

Understanding your digital estate requires identifying what you own, where it’s stored, and how you want it to be handled in your estate plan.

Why Digital Assets Matter in Estate Planning

More Canadians are relying on digital platforms for banking, communication, and entertainment than ever before. Fact: On a per capita basis, Canadians spend more time online than any other country—averaging 43.5 hours per month online.

Without a clear plan in place, digital assets can be lost, locked away, or misused after someone passes away. Unlike physical assets, executors won’t stumble upon them in a file cabinet—they must know where to look and how to access them.

Key Risks of Not Planning for Digital Assets:

🚨 Locked Out Accounts – Without proper documentation, your executor or loved ones may be unable to access important digital accounts.
🚨Lost Financial Assets – Loyalty points, investments, and cryptocurrency accounts can disappear if no one knows about them.
🚨Online Identity Theft – Unmonitored social media or email accounts can become vulnerable to hacking or fraud.

Estate planning ensures your digital life isn’t left in limbo and that your assets are handled according to your wishes.

How to Include Digital Assets in Your Estate Plan

1. Take Inventory of Your Digital Footprint
   Start by listing all of your digital assets and online accounts, including login credentials and security questions. Be mindful of security concerns—instead of writing passwords in your Will (which becomes a public document), consider a password manager or secure document storage.

    

2.  Appoint a Digital Executor
   Choose someone tech-savvy who can manage your digital estate. This person will be responsible for handling online accounts, transferring digital assets, and closing or memorializing social media profiles. Some provinces now legally recognize digital executors, so check local estate laws or speak with an advisor.

    

3. Specify Your Wishes in Your Will
   A standard Will might not include digital assets, so work with an estate planner to ensure your Will outlines:
   ✔️ Who will have access to your digital assets
   ✔️ Which accounts should be closed, memorialized, or transferred
   ✔️ How sentimental digital items (e.g., family photos) should be passed on

    

4. Use Legacy Contact Features Where Available
   Some platforms allow users to name a legacy contact to manage accounts after death:
   📌Facebook & Instagram – Allows you to choose a legacy contact to memorialize or delete your account.
   📌Apple & Google – Offer tools to allow designated individuals to access account data after passing.
   📌Cryptocurrency Wallets – Have unique security measures, so ensure your executor knows how to retrieve them.

    

5. Review & Update Your Plan Regularly
   Digital assets change over time—new accounts are created, passwords change, and companies update policies. Review your plan every few years to ensure your digital assets remain properly accounted for.

The Role of an Executor in the Digital Age

Being an executor is already a significant responsibility, and the rise of digital assets makes the role even more complex. Traditionally, executors followed paper trails, but today they may be left with a locked smartphone and no idea where to start.

To help your executor:
🔹 Provide them with a securely stored list of digital assets and instructions.
🔹 Discuss your wishes with them ahead of time.
🔹 Ensure they understand any legal limitations on accessing accounts.

Final Thoughts: Why Digital Estate Planning Matters

We’re the first generation that will pass on digital assets to the next. Whether it’s financial accounts, personal memories, or a social media presence, planning ahead ensures these assets don’t get lost or mismanaged.

A well-structured digital estate plan protects your financial interests, sentimental memories, and online identity. Take the time to organize your digital life today—so your loved ones aren’t left navigating uncertainty tomorrow.

Need help incorporating digital assets into your estate plan? Work with an estate advisor to ensure everything is handled properly.