7 Critical Mistakes Families Make With Digital Asset Estate Planning (And How to Avoid Them)

Estate planning for digital assets has become one of the most critical, yet frequently overlooked, aspects of protecting your family’s future. If you have email accounts, social media profiles, cryptocurrency, or photos stored in the cloud, you have digital assets that need a plan. Without one, your family could spend months battling tech companies just to access your photos or pay your bills.

California families face a unique situation. Effective January 1, 2025, Senate Bill 1458 significantly expanded California’s digital asset laws to cover incapacity, not just death. This update, sometimes called “RUFADAA 2.0,” gives agents under powers of attorney and conservators the legal authority to manage digital assets that they previously lacked. For San Diego County residents planning their estates, understanding these changes is essential.

This guide walks you through what California law requires, how major tech platforms handle deceased users’ accounts, and the seven concrete steps you can take today to protect your digital legacy.

Key Takeaways when Planning for Digital Assets

• Digital assets include email accounts, social media, cryptocurrency, photos, domain names, and any electronic file you own or have a license to use.
• California’s updated RUFADAA law (effective January 1, 2025) now covers agents under powers of attorney and conservators, not just executors and trustees.
• Most digital service providers follow a three-tier priority system: (1) your settings in their online tool, (2) your estate planning documents, (3) their terms of service.
• Taking action now through platform legacy tools and proper estate planning documents prevents your family from costly court battles and permanent data loss.

What Are Digital Assets?

A digital asset is any electronic record in which you have a right or interest. Under California Probate Code Section 871, digital assets include data, text, images, videos, sounds, codes, computer programs, software, and databases stored electronically. However, the law clarifies that digital assets do not include the underlying physical item unless that item itself is a digital record.

Understanding this distinction matters. You might own an iTunes library worth thousands of dollars, but you may only have a license to use that content rather than outright ownership. When you pass away, that license may terminate according to Apple’s terms of service.

Common examples of digital assets include:

• Email accounts (Gmail, Outlook, Yahoo, iCloud)
• Social media profiles (Facebook, Instagram, LinkedIn, Twitter/X)
• Online banking and investment accounts
• Cryptocurrency wallets (Bitcoin, Ethereum, and other digital currencies)
• Cloud storage (Google Drive, Dropbox, iCloud)
• Photos and videos stored digitally
• Domain names, websites, and blogs
• Digital subscriptions and streaming services
• Loyalty program points and frequent flyer miles
• Online business accounts and digital intellectual property

Why Does Estate Planning for Digital Assets Matter?

The average person has over 100 online accounts. When someone dies or becomes incapacitated without a digital asset plan, their family faces an uphill battle. Tech companies prioritize user privacy, which means they will not simply hand over passwords because someone claims to be a family member.

Real-world consequences of poor digital asset planning include family photos permanently lost because no one can access a deceased parent’s iCloud account, unpaid bills and late fees because an incapacitated spouse’s online banking remains locked, cryptocurrency worth hundreds of thousands of dollars becoming inaccessible because private keys died with the owner, and grieving families spending months in court seeking access to a loved one’s accounts.

For California families in Carlsbad and throughout San Diego County, proper estate planning for digital assets prevents these situations. A comprehensive plan ensures your family can access what they need, protect valuable digital property, and honor your wishes regarding your online presence.

How Does California Law Address Digital Assets?

California adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) in 2016. This law, found in California Probate Code Sections 870 through 884, creates a framework for fiduciaries to access and manage digital assets while respecting user privacy.

The 2025 RUFADAA Updates (SB 1458)

Senate Bill 1458, effective January 1, 2025, significantly expanded California’s digital asset law. The original California RUFADAA only applied to executors and trustees managing digital assets after someone died. This left a major gap: agents under powers of attorney and conservators had no legal authority to manage digital assets during incapacity.

Key changes under SB 1458 include:

• Expanded definition of fiduciary: The law now includes agents under powers of attorney and conservators, not just personal representatives and trustees.
• Incapacity coverage: Fiduciaries can now manage digital assets during a person’s lifetime incapacity, not just after death.
• New disclosure provisions: Sections 879.1 through 879.3 authorize disclosure of electronic communications content to agents with proper authority.
• Alignment with other states: California now joins the 45+ states that had already adopted the full model RUFADAA provisions.

This update matters because incapacity is often when digital access matters most. A sudden stroke, hospitalization, or cognitive decline can leave accounts in limbo. Bills go unpaid, business accounts sit locked, and health portals remain inaccessible. Under the old law, even an agent with a properly drafted power of attorney had no clear statutory path to manage these assets.

California’s Three-Tier Priority System

California’s RUFADAA establishes a clear hierarchy for determining what happens to your digital assets. Understanding this system helps you make the right planning decisions.

1. Online Tool Settings (Highest Priority): If a service provider offers a legacy tool (like Google’s Inactive Account Manager or Apple’s Legacy Contact) and you have used it, those settings control. These directions override your will, trust, and even the provider’s terms of service.
2. Estate Planning Documents (Second Priority): If you have not used an online tool, your will, trust, or power of attorney directs what happens. You can grant or restrict access to digital assets in these documents.
3. Terms of Service (Lowest Priority): If you have not used an online tool or specified directions in your estate plan, the service provider’s terms of service control. Many terms of service state that accounts terminate upon death and cannot be transferred.

This priority system is why proactive planning matters. Without action on your part, your family may face restrictive terms of service that result in account deletion or denial of access.

What Can Fiduciaries Do Under RUFADAA?

Even with California’s updated law, fiduciary access to digital assets has limits. The law balances the need for estate administration with user privacy.

Fiduciaries generally CAN:

• Access digital assets necessary for estate or trust administration
• Request a catalog of electronic communications (the list of messages, not the content)
• Request termination of accounts
• Access content of electronic communications if the user explicitly consented

Fiduciaries generally CANNOT:

• Access content of emails, chats, or direct messages without explicit user consent
• Impersonate the deceased or incapacitated user
• Access deleted assets or joint accounts through RUFADAA
• Violate federal privacy laws like the Stored Communications Act

Custodians must respond to valid requests within 60 days. They can request additional documentation, charge reasonable fees, and deny requests that would require disclosure of other users’ information. If a custodian refuses to comply, the fiduciary can petition the court.

How Do Major Platforms Handle Deceased Users’ Accounts?

Each major tech company has its own policies for handling accounts after a user dies. Understanding these policies helps you plan effectively and use available tools to make access easier for your family.

Apple (iCloud, iTunes, Photos)

Legacy Contact Program: Apple allows you to designate one or more Legacy Contacts who can access your Apple ID data after you pass away. This feature is available in iOS 15.2 and later. Your Legacy Contact receives an access key that they will use along with your death certificate to request access.

How to set up: Go to Settings, tap your name, then Password & Security, then Legacy Contact. You can add contacts and share the access key via Messages or print a copy to store with your estate documents.

What Legacy Contacts can access: Photos, messages, notes, files, apps, device backups, and contacts. They cannot access licensed media (movies, music, books), payment information, keychains, or subscriptions.

Without a Legacy Contact: Apple requires a court order before releasing any account information. This process can take months and requires legal fees.

Google (Gmail, Photos, Drive, YouTube)

Inactive Account Manager: Google allows you to designate up to 10 trusted contacts who can access your data after a period of inactivity. You choose the inactivity period (3, 6, 12, or 18 months) and select which Google services each contact can access.

How to set up: Visit myaccount.google.com/inactive and follow the prompts. You can customize what data each contact receives and write a personalized notification message.

Key features: You can choose to have your account automatically deleted after the inactivity period if you prefer. Google will send warnings to your backup phone number or email before taking action, giving you a chance to stay active if you’re simply locked out temporarily.

Without Inactive Account Manager setup: Google has a process for family members to request access or deletion, but it requires extensive documentation and Google retains discretion over what, if anything, to release.

Facebook and Instagram (Meta)

Legacy Contact: Facebook allows you to choose a Legacy Contact who can manage your memorialized profile after you pass away. You can also choose to have your account permanently deleted instead.

What a Legacy Contact can do: Write a pinned post, update profile and cover photos, respond to friend requests, and request account removal. A Legacy Contact cannot log in as you, read your messages, remove existing friends, or post as if they were you.

Memorialization: Once Facebook confirms a death, the account is memorialized. The word “Remembering” appears before the profile name. No one can log in to a memorialized account.

Without a Legacy Contact: Family members can request memorialization or removal by submitting proof of death. Access to account content is generally not provided.

Other Major Platforms at a Glance

7 Steps to Protect Your Digital Assets in California

Taking these seven steps will ensure your digital assets are protected and accessible to the right people when needed.

Step 1: Create a Complete Inventory of Your Digital Assets

Start by listing every digital account and asset you own. Include the account name, website or app, username, and how you access it. Note whether each account has financial value, sentimental value, or both. Review your password manager, email subscriptions, and bank statements to find accounts you may have forgotten.

Organize your inventory into categories: financial accounts (banking, investments, cryptocurrency), communication (email, messaging), social media, cloud storage, subscriptions, domain names and websites, and loyalty programs. Update this inventory at least annually and after opening any new significant account.

Step 2: Use Platform Legacy Tools

Set up legacy contacts or inactive account managers on every platform that offers them. These tools sit at the top of California’s priority hierarchy and make access straightforward for your family. Without them, even a properly drafted trust may require extensive documentation and potential court involvement.

Priority platforms to configure:

• Apple Legacy Contact (for iPhone, iCloud, Mac users)
• Google Inactive Account Manager (for Gmail, Drive, Photos, YouTube)
• Facebook Legacy Contact (for Facebook and Instagram)
• Any cryptocurrency exchange or wallet that offers beneficiary designation

Step 3: Include Digital Assets in Your Estate Planning Documents

Your will or trust should explicitly address digital assets. California’s RUFADAA allows you to grant or restrict fiduciary access to digital assets in your estate planning documents. Without explicit authorization, your fiduciary may only receive limited access, such as the catalog of communications rather than actual content.

Work with a California estate planning attorney to include language that specifically authorizes your trustee, executor, or agent to access, manage, and control your digital assets. Specify whether you want content of communications (emails, messages) accessible or restricted. Address what should happen to social media accounts: memorialization, deletion, or continued management.

Step 4: Update Your Power of Attorney

With California’s 2025 RUFADAA update, agents under powers of attorney now have legal authority to manage digital assets. However, your power of attorney document should specifically grant this authority to avoid any ambiguity. Review your existing power of attorney to ensure it includes digital asset provisions.

If you become incapacitated, your agent may need to access your online banking to pay bills, your health portal to coordinate medical care, or your email to communicate with service providers. Without proper authorization in your power of attorney, custodians may refuse to cooperate even with the updated law.

Step 5: Securely Store Access Information

Your fiduciary needs a way to actually access your accounts. You have several options for securely storing this information.

Password Manager with Trusted Contact: Services like 1Password, LastPass, and Dashlane offer emergency access features that let you designate someone who can request access after a waiting period.

Secure Physical Document: Store a printed list of accounts and passwords in a secure location like a fireproof safe or safe deposit box. Tell your trustee or executor where to find it.

Digital Legacy Service: Services like Everplans or FutureVault allow you to store digital asset information securely and designate who can access it after your death.

Whichever method you choose, update it regularly. Passwords change, accounts are added and deleted, and access methods evolve. Schedule a quarterly review to keep your digital asset information current.

Step 6: Provide Clear Instructions

Beyond accessing information, your fiduciary needs to know what you want done with each digital asset. Some assets should be preserved, some transferred to family members, some deleted, and some managed for ongoing value.

Consider providing instructions for:

• Social media accounts: Should they be memorialized, deleted, or managed by someone?
• Email accounts: Are there important files or communications that should be preserved?
• Photos and videos: Where are they stored, and who should receive copies?
• Cryptocurrency: What are the private keys or recovery phrases, and who should inherit them?
• Subscriptions: Which should be cancelled, and are there any with value to transfer?
• Online businesses: Who should manage them, and how should revenue be handled?

Step 7: Review and Update Regularly

Digital assets change more frequently than traditional assets. New accounts are created, old ones are abandoned, platforms change their policies, and passwords are updated. Your digital asset plan needs regular maintenance to remain effective.

Schedule an annual review of your digital asset inventory and instructions. Update your estate planning documents when you acquire significant new digital assets like cryptocurrency or an online business. Check that your legacy contacts and inactive account manager settings remain current when you change devices or create new accounts.

Special Considerations for Cryptocurrency

Cryptocurrency presents unique challenges for estate planning. Unlike traditional accounts where a fiduciary can work with a custodian to gain access, cryptocurrency held in self-custody wallets can become permanently inaccessible if the private keys are lost.

Key cryptocurrency planning steps:

• Document which cryptocurrencies you hold and where (exchange accounts vs. self-custody wallets)
• Securely store private keys and recovery phrases separately from the information about what you hold
• Consider whether exchange accounts with beneficiary designations provide adequate security for your needs
• Provide clear instructions on how to access and transfer cryptocurrency
• Consider whether your beneficiaries have the technical knowledge to manage cryptocurrency

For substantial cryptocurrency holdings, work with an estate planning attorney familiar with digital assets and consider whether a trust structure provides better protection and transfer mechanisms than simple beneficiary designations.