Probate for Digital Assets: What Executors Need to Know

The world we live in has evolved significantly over the past few decades. Once, the items considered part of a person’s estate were tangible—cash, real property, stocks, jewelry, vehicles, and other physical belongings. However, the rise of the digital age means that modern estates now often include a wealth of digital assets. 

From email accounts and social media profiles to cryptocurrency wallets and cloud storage containing cherished family photos, these digital possessions require just as much attention during probate as traditional assets. Yet, many executors may feel overwhelmed by the details involved in managing and distributing intangible assets, especially when access is restricted or ownership rights remain unclear. 

Fortunately, guidance from attorneys like Attorney Dana Jacobson of The Jacobson Law Firm, P.C. can bring clarity to an otherwise complicated process. With a reputation for breaking down legal concepts into accessible, digestible information, Attorney Dana Jacobson empowers executors and families to understand the unique challenges of probate for digital assets. He is dedicated to helping clients in San Antonio and the surrounding South-Central Texas region, and he strives to make legal assistance less daunting and more approachable.

What Are Digital Assets? 

Digital assets encompass a broad category of electronic records and accounts related to estate planning. These can include anything from social media profiles and email accounts to subscription services, online banking information, domain names, eBooks, and digital photographs. 

Cryptocurrency and non-fungible tokens (NFTs) also make up increasingly significant portions of modern estates. While these assets may not be tangible in the traditional sense, they often hold monetary or sentimental value that should not be overlooked during the probate process. 

Despite their importance, digital assets are frequently neglected in estate planning and probate discussions. Executors may find themselves grappling with password-protected accounts, unclear ownership rules, or terms of service agreements that limit their access. This highlights the importance of proper planning and understanding the laws surrounding digital inheritance. 

Challenges Executors Face with Digital Assets 

Managing digital assets comes with a unique set of challenges. First, accessing these assets or accounts often requires login credentials that only the deceased may have known. Without access, executors can spend significant time and effort trying to recover accounts, often dealing with complex verification processes. Additionally, some service providers place restrictions on passing digital accounts to heirs due to terms laid out in their user agreements. 

Another issue is the lack of centralized federal regulation regarding digital asset management during probate. Although the Uniform Fiduciary Access to Digital Assets Act (UFADAA) provides guidance in several states, the interpretation and implementation of these laws can still vary widely. For instance, executors in Texas must account for both state laws and specific platform policies while ensuring compliance with any relevant estate planning documents. 

Additionally, the sentimental nature of many digital assets—such as family photos or online journals—can create emotional dilemmas. Executors are often tasked with striking a balance between maintaining privacy, preserving memories, and honoring the wishes of the deceased. This responsibility can feel weighty and highlight the need for experienced legal support. 

The Role of Estate Planning in Simplifying the Process 

Proper estate planning is key to easing the burden of probating digital assets. Comprehensive trusts, wills, and advance directives can help streamline the process for executors. Ensuring an estate plan includes detailed instructions for digital accounts and assets can prevent unnecessary legal hurdles and protect the deceased’s digital legacy. 

Attorney Dana Jacobson emphasizes the need for clear communication during the estate planning phase. By taking proactive measures, individuals can grant executors the necessary legal authority to access or manage digital assets. These preparations often include compiling an inventory of accounts, providing login credentials, and designating a trusted individual to handle online presences. 

Attorney Dana Jacobson’s approach is rooted in educating his clients about their options. He aims to empower individuals to make informed decisions that protect their families in the long term. Whether assisting with advanced estate planning or resolving probate disputes, he demonstrates a steadfast commitment to his clients and community. 

Legal Tools for Addressing Digital Assets 

Texas law recognizes the increasing significance of digital assets in estate planning and probate. The Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), adopted by Texas, provides a foundation for executors to manage digital assets. Under this law, fiduciaries can access certain digital accounts and records based on the deceased’s explicit consent provided in estate planning documents. However, specific language must be used in the estate plan to ensure compliance with RUFADAA. 

Additionally, some online platforms allow users to designate a “legacy contact” or assign account access to trusted individuals in the event of their death. Social media sites like Google and Facebook offer these features, providing families with a streamlined way to manage a deceased loved one’s account. Executors should be aware of these options and explore them during the estate planning phase. 

Why You Should Seek Legal Guidance to Preserve Your Digital Legacy 

Attorney Dana Jacobson at The Jacobson Law Firm has four decades of experience serving San Antonio and the broader South Central Texas community. This experience makes him highly qualified to address evolving estate challenges. Mr. Jacobson combines his deep understanding of probate law with a compassionate approach that puts clients at ease. Whether navigating detailed legal statutes or navigating emotional family dynamics, Jacobson’s steadfast dedication equips his executors to handle their responsibilities with confidence. 

Digital assets represent an integral aspect of modern estates. Safeguarding these assets while respecting the deceased's wishes is a responsibility that attorneys like Attorney Dana Jacobson take seriously. By incorporating thorough estate planning strategies, educating families, and leveraging legal experience, he guides his clients compassionately through even the most complex probate proceedings.