To include digital assets in your New York estate plan, you name a trusted person to manage them and give that person clear legal authority through your core estate planning documents — your will, your trust, and your power of attorney — so they can access, transfer, or close your online accounts after you become incapacitated or pass away. Digital assets are not automatically covered just because you have a will; New York law requires that the authority be spelled out. This 101 guide explains, in plain language, what digital assets are, why they get lost without planning, and exactly how the standard New York estate plan handles them.
What Are “Digital Assets”? (The 101 Definition)
A digital asset is anything you own or control that exists in electronic form. If you would be upset to lose access to it, or if it has financial or sentimental value, it belongs in your plan. Common examples include:
- Financial accounts — cryptocurrency wallets, online brokerage and banking logins, PayPal, Venmo, Zelle
- Email accounts — Gmail, Outlook, and others (these are the “master key” to resetting passwords on everything else)
- Photos and files — iCloud, Google Photos, Dropbox, external backups
- Social media — Facebook, Instagram, LinkedIn, X
- Online businesses and income — domain names, e-commerce stores, YouTube channels, blogs
- Loyalty and subscription accounts — airline miles, credit card points, streaming services
A simple way to think about it: a digital asset is the account or file, while the password is just the key. Estate planning is about giving the right person the legal right to use that key — not just handing over a sticky note.
Why Digital Assets Get Lost Without a Plan
When someone dies or becomes incapacitated, family members often discover they cannot get into accounts even when they know the deceased person’s wishes. Two things stand in the way:
- Terms-of-service agreements. Most platforms forbid sharing passwords and may freeze or delete an account on death.
- Privacy and computer-access laws. Companies will not simply hand over a person’s emails or files to a relative without legal authority.
The solution is to grant authority in advance, in writing, inside documents the law recognizes. That is exactly what a coordinated New York estate plan does.
The Four Documents That Protect Your Digital Life
A comprehensive New York estate plan is built from four documents that work together. Each one controls digital assets at a different moment.
| Document | NY Authority | What It Does for Digital Assets |
|---|---|---|
| Last Will and Testament | EPTL § 3-2.1 | Names who inherits your digital property and appoints an executor to gather and distribute it after death. |
| Revocable or Irrevocable Trust | EPTL Article 7 | Holds valuable digital assets (e.g., crypto, an online business) so they pass privately and avoid probate. |
| Durable Power of Attorney | GOL § 5-1513 | Lets your agent manage digital accounts while you are alive but incapacitated. |
| Health Care Proxy | NY Public Health Law Article 29-C | Appoints an agent for medical decisions — distinct from the financial POA. |
The Will (EPTL § 3-2.1)
Your will is the document that says who gets what after you die and who is in charge of carrying out your wishes — your executor. Under EPTL § 3-2.1, a valid New York will must be signed by you at the end of the document, signed in the presence of two attesting witnesses, and you must declare (“publish”) that the document is your will. If you die without a will (called dying intestate), New York’s default rules under EPTL Article 4 decide who inherits — and those rules know nothing about your digital wishes. A properly drafted will gives your executor explicit authority to access and manage your digital assets.
Trusts (EPTL Article 7)
For digital assets with real value — a cryptocurrency portfolio, a profitable online store, a valuable domain — a trust under EPTL Article 7 can be the better home. A revocable living trust lets those assets pass to your beneficiaries without probate and keeps the details private (a revocable trust does not reduce estate tax). An irrevocable trust is used for tax reduction, asset protection, and Medicaid planning, which carries a 5-year look-back period. A Supplemental Needs Trust under EPTL 7-1.12 can hold assets for a loved one with disabilities without jeopardizing government benefits.
The Durable Power of Attorney (GOL § 5-1513)
Death is not the only risk. If you are hospitalized or lose capacity, someone needs to pay your online bills, manage your accounts, and prevent fraud right now. The durable power of attorney under GOL § 5-1513 — which is durable by default and uses New York’s 2021 statutory short form — lets your chosen agent step in during your lifetime. A modern POA should specifically authorize access to digital accounts and electronic communications.
The Health Care Proxy (Public Health Law Article 29-C)
The health care proxy under NY Public Health Law Article 29-C appoints an agent to make medical decisions if you cannot speak for yourself. It does not control your finances or your digital accounts, but it completes the plan so that every kind of decision has a trusted decision-maker.
A Simple 5-Step Checklist for Beginners
- Make an inventory. List your accounts and where the keys live (password manager, hardware crypto wallet, safe deposit box). Do not put passwords in your will — wills can become public records.
- Choose your people. Decide who manages digital assets during incapacity (your POA agent) and after death (your executor or trustee).
- Add digital-asset language. Have an attorney include modern digital-asset authority in your will, trust, and power of attorney.
- Use platform tools. Set up Google’s Inactive Account Manager, Apple’s Legacy Contact, and Facebook’s Legacy Contact to back up your legal documents.
- Keep it current. Review your inventory yearly and after any major life or financial change.
A Quick Word on the New York Estate Tax
If your digital holdings are significant, taxes matter. For deaths on or after January 1, 2026 through December 31, 2026, New York’s basic exclusion amount is $7,350,000. New York has a notorious “cliff”: an estate that exceeds 105% of the exclusion — $7,717,500 — loses the entire exemption and is taxed from the first dollar, at progressive rates from 3% to 16%. New York has no gift tax, but gifts made within three years of death are added back into the taxable estate. Learn more in our NY estate tax guide and, for the full picture statewide, our New York statewide estate planning guide.
Frequently Asked Questions
Q: Can I just leave my passwords in my will?
A: No — a will can become a public document during probate, so listing passwords there is a security risk. Instead, your will should grant authority to access digital assets, while the actual passwords live in a secure password manager or safe deposit box.
Q: Will my family automatically get into my email and accounts if I have a will?
A: Not automatically. Platforms restrict access under their terms of service and privacy rules. Your executor needs explicit digital-asset authority in the will, and your power of attorney needs it for lifetime incapacity.
Q: What happens to my crypto if I die without a plan in New York?
A: If no one knows the wallet exists or can locate the keys, the cryptocurrency may be lost forever. Under intestacy (EPTL Article 4), even your legal heirs cannot recover assets they cannot access.
Q: Does my power of attorney cover digital assets?
A: Only if it says so. A properly drafted durable power of attorney under GOL § 5-1513 should specifically authorize your agent to manage digital accounts and electronic communications during your lifetime.
Take the First Step Today
Your digital life deserves the same protection as your home and bank accounts. With the right documents — a will, the appropriate trusts, a durable power of attorney, and a health care proxy — your wishes are honored and nothing valuable slips through the cracks. To learn more, explore our estate planning overview, wills, and power of attorney pages.
Ready to protect your digital and financial legacy across New York State? Schedule a consultation with Russel Morgan, Esq. of Morgan Legal Group: book a 30-minute call.
Further reading from Morgan Legal Group: the New York estate planning guide.