Digital Assets and Estate Planning in North Carolina – All You Need to Know

It’s no secret that most of us live our lives online. With the digital age, however, came the rise of online banking, cryptocurrency, and social media accounts, which makes some people wonder about digital assets and estate planning in North Carolina. With so many people leaving these assets out of their wills, digital assets tend to just sit there after a person dies, which creates confusion and frustration for the families left behind.

Why North Carolina Residents Need to Address Digital Assets

Our digital lives continue to grow and evolve every day, and so does the complexity of managing digital assets when it comes to estate planning. A digital asset can be anything with value that’s stored electronically and can include online accounts like email, social media accounts, financial accounts (including cryptocurrency), and intellectual property.

With over 5.5 billion people being global internet users, it’s not surprising that digital assets are being added to many people’s estates.

With 68% of Americans opting not to have an estate plan, many families find themselves unable to access digital assets when a loved one dies. According to a 2025 survey, 50% of married couples have digital assets that the other spouse does not have access to, and of the 65% of those surveyed who had a will, only 24% made contingencies for their online account information.

Digital assets can hold both personal and financial significance, with social media accounts holding irreplaceable family memories, while a cryptocurrency wallet could have substantial financial worth. Sadly, many people forget to account for these assets when drafting their estate plans.

As of 2018, North Carolina’s Uniform Fiduciary Access to Digital Assets Act (UFADAA) gives personal representatives, agents, and trustees the right to access a deceased person’s digital assets, provided the deceased gave them permission to access them, and the only way to do that is to add your digital assets to your estate plan.

The Importance of Digital Asset Inventories

A crucial first step when adding digital assets to your estate plan is creating a digital asset inventory. This list should include all your online accounts, usernames, passwords, and any financial, personal, or intellectual property values. It’s important to update this inventory regularly, as people frequently open and close accounts.

In addition to listing accounts, people setting up their estate plans should assign individuals whom they trust to manage or inherit these digital assets. Whether it’s family members, business partners, or a legal professional, it’s important to have a clear plan for the disposition of digital assets. This is especially important for assets like cryptocurrency, which can have high monetary value but are often difficult for others to access.

Estate Planning Tools for Digital Assets

Understanding and utilizing the right estate planning tools for your digital assets can help make sure your wishes are followed and that your assets are properly handled. Once you’ve created a digital asset inventory, there are several tools to consider when integrating these assets into your estate plan, and they are:

1. Digital asset authorization forms. These forms let you grant or limit access to your digital assets to specific individuals, like family members or executors. They can either be part of a larger estate plan or standalone documents.
2. Password managers. Many people use password managers to securely store their account details. While these tools are excellent for security, they can also be used to simplify estate planning. In the event of your death, your designated representative can be given access to your password manager, which then allows them to quickly access your accounts.
3. Legal documents. North Carolina law allows for the inclusion of digital assets in a will or trust. However, because many digital platforms have specific terms and conditions when it comes to account access after death, it’s important to consult with an attorney to make sure your instructions are legally enforceable.
4. Revocable trusts. For digital assets that hold significant financial value, like cryptocurrency wallets, a revocable trust can be used to outline specific terms for how those assets should be distributed. These trusts can be easily changed as your digital portfolio evolves.

Digital assets are a growing aspect of modern estates, and addressing them in your estate plan is important when making sure they’re properly managed after your death. Working with an experienced estate planning attorney can make sure all your angles are covered, giving you peace of mind knowing your family is cared for.

FAQs

Q: How Are Digital Assets Like NFTs Handled in an Estate Plan?

A: NFTs can hold significant value, both financially and sentimentally. To include them in your estate plan, make sure you document the private keys, platforms, and transfer instructions. A digital asset trust or specific instructions in your will can outline how these digital collectibles should be transferred to beneficiaries or sold after your passing, ensuring their value is preserved.

Q: Can Social Media Accounts Be Left to Someone in My Estate Plan?

A: Yes, social media accounts can be included in your estate plan, though it requires clear instructions and platform-specific procedures. Some platforms, like Facebook, allow for legacy contacts, while others require a legal process to transfer or delete accounts. It’s important to specify your preferences and make sure your executor has the necessary access to appropriately handle these digital accounts.

Q: How Do I Protect My Digital Assets from Cyber Theft After My Death?

A: To protect your digital assets from cyber theft, you need to include security instructions in your estate plan, such as using two-factor authentication where possible. You can also designate a trusted person to manage your online security settings after your passing. Make sure your digital executor has access to secure passwords and that they know the steps to protect your online presence from unauthorized access.

Q: What Happens to My Online Subscriptions and Digital Purchases After I Pass Away?

A: Online subscriptions and digital purchases can become problematic without proper planning. Some services let you transfer your account, while others do not. To manage this, include instructions for canceling subscriptions or transferring accounts to family members. Additionally, make sure your digital assets inventory includes information about these subscriptions so your beneficiaries can avoid unnecessary fees or complications.

Start Protecting Your Digital Legacy Today

Digital assets are an integral part of your overall estate, and making sure they are properly managed is key when protecting your legacy.

At Orsbon & Fenninger, LLP, we understand the complexities of digital estate planning, and we’re here to help you navigate through this new frontier of estate planning.

Contact us today to schedule a consultation.