Practical Side of Planning: Digital Assets and Online Accounts

When we think of estate planning, we often picture wills, deeds, and bank statements. But in today’s world, your digital life is just as important. Email, banking apps, investment platforms, cloud storage, and even social media are all “digital assets” that your loved ones—or a fiduciary—may need to access one day.

If no one knows how to access these accounts, valuable information, sentimental memories, or even money could be lost. Here’s how to make sure that doesn’t happen.

Step One: Use a Secure Password Manager (and Add a Recovery Contact)

A reputable password manager keeps all your usernames and passwords in one secure place. Many services allow you to add a trusted person’s phone number or email address as a recovery option.

If you’ve named a fiduciary in your estate plan (such as an executor or agent under a power of attorney), adding their contact information makes it possible for them to reset your passwords when needed—without guessing or going through lengthy verification hurdles.

Step Two: Empower Your Fiduciary with Real Access

Legal authority alone isn’t enough. Even if someone is appointed by a court to manage your affairs, platforms can still block or delay them if the account settings aren’t set up in advance.

To avoid this:

Add your fiduciary as a recovery contact on critical accounts like email, banking, investment, and cloud storage.
Review and update account recovery settings annually.
Give your fiduciary clear instructions on where to find your login information (or who to contact for it).

Step Three: Keep an “Old-School” Backup—But Guard It

Not everyone is comfortable relying solely on digital tools. Even an old-fashioned, written list of usernames and passwords, updated regularly, is far better than nothing—because it ensures accounts aren’t lost.

But this list is highly sensitive. If it falls into the wrong hands, your personal and financial security could be compromised. To protect it:

Store it in a locked safe, safe deposit box, or sealed envelope with your estate planning documents.
Avoid obvious storage spots (like your desk drawer).
Make sure you update it every time your password on an account changes.
Limit knowledge of its location to only those you trust completely.

Step Four: Know the Rules of Your Platforms

Each platform has its own rules for account access after death—and some are surprisingly strict.

Example: The Robinhood Case
Until May 2022, Robinhood didn’t allow users to name a Transfer on Death (TOD) beneficiary at all. This meant that when an account holder died, assets had to go through probate—often creating long delays. (Prudent Investors)

Even today, if no TOD is set, Robinhood requires fiduciaries to go through its estate process and submit extensive documentation. And per Robinhood’s own terms, they may refuse to transfer assets at their sole discretion if there’s any dispute or ambiguity about the beneficiary. (Robinhood TOD Agreement)

Imagine an executor with full court authority, trying to access a loved one’s account, only to be blocked because there was no TOD or because Robinhood raised a procedural question. Assets could remain frozen for months or even years while legal issues are resolved.

The takeaway: Don’t assume court authority is enough—know the rules of each platform you use and set beneficiaries or backup access options in advance.

Step Five: Review and Update Regularly

Digital assets evolve quickly—new accounts open, old ones close, passwords change, and platforms update their policies. Set a reminder to review your plan at least once a year or after any major life event.

Why This Matters

Without a plan for your digital assets, your fiduciary might:

Struggle to pay bills or manage investments.
Lose access to important family photos or documents.
Face unnecessary delays and costs in probate.
Lose track or access to entire accounts.

By taking a few proactive steps now, you ensure that your online accounts are accessible when needed—without compromising your security.

In Summary:

Use a password manager and add your fiduciary’s contact as a recovery option.
Set up access in advance—legal authority alone may not be enough.
Keep a secure analog backup—better than nothing, but keep it safe.
Know each platform’s rules and set beneficiaries when possible.
Review annually to keep your plan current.