Digital Estate Planning: The Missing Piece Most Families Don't Discover Until It's Too Late
She found the notebook in the top drawer of her mother's desk.
Six pages.
Every account. Every username. Every password. Recovery questions. Everything was neatly organized.
Her mother had planned carefully.
Then she tried to log in.
The bank requested a six-digit verification code sent to her mother's phone.
The phone was locked with a fingerprint.
The email connected to the account had been created decades earlier through a provider that no longer existed.
The recovery phone number belonged to a disconnected landline.
The notebook was complete.
It still wasn't enough.
This is one of the biggest gaps in modern estate planning—and most families don't discover it until they're already grieving.
Why Passwords No Longer Solve the Problem
Today, most online accounts require more than a password.
Banks, investment firms, email providers, cloud storage platforms, and many other services now use two-factor authentication (2FA). After entering the correct password, users must verify their identity through a code sent to a trusted phone, email address, or authentication app.
This added layer of security is excellent for protecting against fraud.
It can also become a major obstacle after someone dies.
Even when family members know the correct password, the verification code may be sent to:
A locked phone
An outdated email account
A disconnected phone number
An authentication app installed only on one device
The password is correct.
The account still can't be accessed.
It's also important to understand that, after a death, the appropriate process is generally not to log in using someone's credentials. Most online platforms have procedures for deceased account holders that require documentation such as a death certificate and proof of legal authority. Even then, recovering access may still depend on the account's security settings.
The bottom line: Passwords are only the first step. A complete digital estate plan also accounts for where verification codes go and how your executor or trustee can legally manage your digital assets.
The Hidden Problem: Outdated Recovery Information
Many online accounts were created years ago.
Since then, you've probably changed:
Email addresses
Phone numbers
Devices
Mobile carriers
Yet many accounts still point to outdated recovery information.
A recovery email that no longer exists or an old phone number that's been disconnected can make account recovery difficult—even through the platform's official procedures.
Every account has its own chain of access.
If one link is broken, recovering the account may take weeks—or may not be possible at all.
The bottom line: A digital estate plan should include current recovery information, not just current passwords.
Which Digital Assets Matter Most?
Many people think first about social media accounts.
But the accounts that create the biggest challenges are often financial and practical:
Online banking
Investment and retirement accounts
Email accounts containing financial records
Cloud storage with legal or tax documents
Cryptocurrency wallets
Online businesses
Digital subscription income
Payment platforms
These accounts often hold significant financial value—or contain information needed to locate other assets.
If no one knows they exist, they may never be found.
The bottom line: Your digital estate includes far more than passwords. It includes every online account that supports your financial or personal life.
Why Your Will Isn't the Place for Passwords
Some people consider writing usernames and passwords directly into their will.
That creates a different problem.
Once a will enters probate, it generally becomes a public court record.
That means anyone who obtains a copy could potentially see that information.
Instead, your will should:
Name the person authorized to manage your digital assets
Reference where secure access information is stored
Your passwords and authentication details should be kept separately in a secure location that trusted individuals know how to access.
The bottom line: Your will should establish legal authority—not store sensitive login information.
What a Real Digital Estate Plan Looks Like
A digital estate plan is much more than a password list.
It includes:
An inventory of all important digital accounts
Current recovery email addresses and phone numbers
Documentation of how two-factor authentication works for each account
Backup authentication codes where available
Secure storage of access information
Clear legal authority for the person responsible for managing your digital assets
Many states have adopted laws such as the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which helps determine what an executor or trustee may access after death. Proper estate planning documents can include provisions that authorize fiduciaries to manage digital assets in accordance with applicable law.
Because every financial institution and online platform has its own requirements, a comprehensive plan should address both the legal authority and the practical process for accessing important accounts.
The bottom line: A digital estate plan isn't simply a list—it's a coordinated system that stays current as your digital life changes.
What You Can Do Today
A few simple steps can make a tremendous difference for your family.
Start by:
Creating an inventory of your important digital accounts.
Reviewing recovery email addresses and phone numbers to ensure they're current.
Generating backup authentication codes where available and storing them securely.
Letting your executor or another trusted person know where your digital asset information is kept.
Reviewing your digital inventory regularly as accounts and devices change.
These small steps can save your loved ones significant time, frustration, and uncertainty later.
How We Can Help
At Starsia Law, we know that today's estate planning extends far beyond paper documents.
Through our Life & Legacy Planning® process, we help families organize not only traditional assets but also the growing number of digital assets that have become part of everyday life.
We work with you to create a practical, comprehensive plan that includes your online accounts, digital records, and the legal authority your loved ones will need to manage them. As your life evolves, we help you keep that plan current so it continues to work when your family needs it most.
Most importantly, our team is here to guide your loved ones when they need support, so they aren't left trying to piece everything together on their own.
Schedule a complimentary 15-minute discovery call to learn how we can help you protect your digital life—and the people you love.
This article is a service of Starsia Law, a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Life & Legacy Planning Session™, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love.
The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.