I remember logging into a deceased relative's email to find a mix of sentimental notes, important tax receipts, subscriptions, and an unused cryptocurrency wallet address — and feeling overwhelmed. If you've ever wondered how a lifetime of online activity turns into estate value, you're not alone. Digital assets today are often worth real money, complicating traditional estate planning. Below I walk through the economics behind commonly cited estimates like the "$70,000" figure, who typically inherits digital assets, what legal and technical barriers exist, and step-by-step actions you can take now to protect your digital legacy. This is practical guidance, not legal advice — for legal certainty, consult an attorney.
Understanding Digital Legacy Economics: Where the $70,000 Estimate Comes From
When people talk about "the $70,000 in digital assets," they're usually summarizing a mix of data points: the combined replacement or market value of online accounts, stored digital media, saved financial credentials, loyalty balances, domain names, and—critically—cryptocurrency holdings. That number is not a precise universal truth for every individual. Instead, it is a representative figure reflecting how a typical adult’s digital presence can translate into measurable monetary or practical value when aggregated.
What counts toward that total? First, direct financial accounts: online brokerage accounts, PayPal-like balances, and the increasingly common cryptocurrency wallets. Crypto alone can dramatically raise a person's digital net worth. Second, monetizable content: blogs with ad revenue, YouTube channels, app developer accounts, and sales-enabled platforms. These assets may generate ongoing income and therefore have value to heirs. Third, intangible value: domain names, established social media profiles with commercial use, loyalty rewards, and saved business records. Finally, sentimental but operationally significant assets such as family photos, videos, digital wills, and subscription records matter because they carry administrative cost and emotional weight.
Why might an average estimate land near $70,000? Surveys and aggregate studies of account balances, combined with anecdotal reports of estates that included cryptocurrency or online business proceeds, suggest that a non-trivial portion of adults have at least a modest cluster of digital values — and a minority possess far larger sums. Because a small share of people hold high-value crypto or online businesses, averages can be skewed upward. The figure should therefore be understood as indicative rather than definitive: some estates will have virtually no monetizable digital value, while others may have six- or seven-figure exposures hiding behind passwords and private keys.
Understanding that digital assets can be material in value changes how you approach planning. Many estate plans written a decade ago assumed heirs could access physical paperwork and bank branches; modern planning must account for distributed logins, encrypted devices, and platform policies that can block access even to authorized representatives. The economics of digital legacy are simple: value cannot be transferred if it cannot be accessed. So the $70,000 idea is most useful as a wake-up call — treat your digital footprint like real property, inventory it, and include it in your planning.
A few practical implications flow from this recognition. First, inventorying your accounts is essential — you cannot pass on what you do not identify. Second, prioritize assets that are high value or high friction (cryptocurrency private keys, accounts tied to businesses, and subscription-based income channels). Third, understand that different asset types have different transfer mechanics: a family photo collection can be shared easily with credentials, while transferring control of an ad-funded YouTube channel may require specific platform approval or legacy arrangements. These distinctions shape how you plan and whom you appoint as a digital executor.
Start a private inventory today listing every platform, account type, and device. Prioritize items by likely monetary value and difficulty of transfer (e.g., wallet seed phrase vs. streaming service login).
Who Inherits Your Digital Assets? Platforms, Law, and Real-World Friction
Figuring out "who inherits" your digital assets requires understanding three layers: legal ownership, platform rules, and practical access. Legal ownership is governed by wills, trusts, and state or national statutes. Platform rules are the terms of service and account policies set by companies like social networks, cloud providers, and crypto exchanges. Practical access concerns whether your executor or heirs can actually log in, decrypt, or administratively transfer assets. These layers often conflict.
From a legal perspective, many jurisdictions have modernized estate law to give fiduciaries limited access to digital assets. In the United States, a prominent example is the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which allows fiduciaries to access digital accounts consistent with the user's will or other direction. However, RUFADAA does not force platforms to provide content if the user opted for privacy settings; instead, it creates a legal pathway for fiduciary access when permitted. Outside the U.S., laws differ widely; some countries treat data access more conservatively, requiring court orders or preserving stricter privacy protections. The bottom line: statutory authority matters, but it is not universal.
Platform rules are the next critical barrier. Many major companies offer legacy features—options that allow account holders to nominate a legacy contact or set an inactive account manager. Others freeze or delete accounts after notice of death. For example, social networks may provide memorialization options while email providers may remove accounts for privacy reasons unless the estate provides sufficient legal documentation. The complexity is compounded by multinational platforms: if an estate is subject to one country's law and the company is based in another, additional friction appears. Platform terms often require probate documents or court orders to release content, especially for messages and files that contain third-party privacy interests.
Practical access is where most estates fail. Passwords are forgotten, two-factor authentication (2FA) is tied to devices that are locked or wiped, and private key-based wallets (cryptocurrency) rely on single points of failure like seed phrases. Even when heirs have legal standing, technical hurdles can prevent value recovery. A digital executor who holds passwords but not a seed phrase cannot recover an on-chain wallet. Similarly, a social media account used as a business storefront may require business verification before it can be monetized. Practical planning requires addressing both credentials and contingency procedures, such as escrowed access to hardware and secure storage of recovery information.
Which people are best suited to inherit digital assets? It depends. Estate assets that are mostly sentimental (photos, family archives) may be best left to a trusted family member. Business-related assets and monetized channels should be left to a person with relevant technical or managerial skills, or better, to an appointed trustee who understands ongoing monetization. For assets that require legal action or tax filing, an executor with legal or financial savviness (or a vetted professional) is often appropriate.
Naming a beneficiary without providing access instructions can render a digital asset unusable. For high-value digital property, pair beneficiary designations with clear access mechanisms (password manager, secure key storage, or legal directive).
How to Plan Your Digital Estate: Practical, Legal, and Technical Steps
Planning your digital estate means coordinating legal documents, secure credential management, and platform-specific actions. Below is a structured approach you can implement in phases, prioritized by risk and value. This section is intentionally procedural — follow these steps to create a practical, resilient plan.
1) Create a comprehensive inventory
List every account, device, subscription, and digital asset. For each item record: platform name, username/email, purpose (personal, business), estimated monetary value, and access method (password, OAuth, key file). Keep this list encrypted and update it annually. High-value items like cryptocurrency wallets or business accounts should be highlighted. This inventory is the foundation of any effective transfer plan because heirs cannot act on what they do not know exists.
2) Choose and document a digital executor
A digital executor is someone you authorize to manage and distribute digital assets. Name this person in your will or trust and provide clear instructions about scope (e.g., access, deletion, transfer). Appoint a technically capable and trustworthy person; for complex estates consider a professional fiduciary or attorney with digital experience. Specify whether the executor has authority to access private communications, monetize accounts, or simply preserve content for heirs.
3) Use secure credential management
Rely on a reputable password manager that supports emergency access or inheritance features. Store master passwords and 2FA backup codes in a secure, offline place like a safe deposit box or an encrypted USB device, and leave instructions for retrieval. For cryptocurrency, seed phrases and hardware wallets must be secured offline and documented with exact retrieval steps. Never store primary recovery keys in plain text in cloud storage.
4) Incorporate instructions into legal documents
A will or trust should reference your digital inventory and authorize the executor to manage digital property consistent with your wishes. Consider an express "digital assets" clause that grants access and direction about disposition — for example, whether accounts should be preserved, memorialized, or deleted. Be cautious: directly listing passwords in a will is unsafe because wills become public record in probate. Instead, reference a secure inventory location and provide the legal authority to access it.
5) Use platform-specific legacy settings
Many major platforms offer legacy or inactive-account tools. Use them where available to name contacts and specify account handling preferences. This reduces friction and can prevent permanent loss of content. For accounts without such options, provide explicit instructions and legal authorization for the executor to petition the platform if necessary.
6) Address tax and financial implications
Digital assets with monetary value may have tax consequences. Document account balances and consult a tax advisor or check official guidance in your jurisdiction to understand potential capital gains, estate taxes, or income reporting obligations. Records of online business receipts and transaction histories are important for the executor to file any necessary returns.
7) Test and communicate the plan
Walk through the plan with your chosen executor (without exposing sensitive information unnecessarily). Confirm they understand retrieval steps, where keys are stored, and what to do if a platform refuses access. Regularly review and update the plan after major life events, platform changes, or when you acquire new high-value digital assets.
Example checklist (short)
- Inventory: Accounts, devices, wallets, subscriptions
- Assign digital executor in will/trust
- Store credentials securely (password manager + offline backup)
- Record cryptocurrency seed phrases in secure offline vault
- Set platform legacy/inactive options where available
- Provide access instructions without embedding passwords in legal documents
Action Plan, Tools, and Resources — What to Do This Week (CTA)
If you read nothing else, do these three things this week: 1) create an encrypted inventory, 2) name a digital executor and record their contact, and 3) secure any high-value keys or accounts (especially crypto). Below are practical tools and a short action timeline to convert planning into results.
Tools and Services
Use a reliable password manager for credential storage and emergency access. For long-term physical backup, consider a safe deposit box or a fireproof home safe for seed phrases and printed instructions. For legal documentation, consult an estate planning attorney to draft clauses that explicitly allow your executor to manage digital assets. If tax questions arise, a certified tax advisor or the government tax site can help clarify reporting obligations.
Two authoritative starting points
- Visit USA.gov — general guidance on government forms and estate planning resources.
- Visit IRS.gov — guidance on tax implications related to estates and digital asset income reporting.
Take 30 minutes this weekend to start your digital inventory. If you prefer professional help, consult an estate attorney to incorporate digital asset clauses into your will or trust. If tax exposure from digital holdings concerns you, contact a tax professional.
Frequently Asked Questions ❓
Final note: digital assets are increasingly material to an estate’s value. Treat them with the same care you would any other significant asset — inventory them, secure access, and document your wishes. If you'd like a simple next step, start the encrypted inventory I describe above and schedule a short conversation with your chosen executor this month. If you need official guidance about forms or taxes, consult the linked resources or a qualified professional.