Estate Planning for Digital Assets: Protecting Your Online Wealth

In 2026, the definition of an “estate” has expanded far beyond physical property, real estate, and paper records, with estate planning for digital assets becoming all the more necessary. For today’s affluent families, a substantial portion of their wealth—and their legacy—is stored entirely online. Cryptocurrency portfolios, revenue-producing websites, valuable domain names, cloud-based business systems, and AI-generated intellectual property now form the backbone of modern estates. Yet these digital assets are often secured behind complex layers of encryption, two-factor authentication, and restrictive Terms of Service agreements that a traditional Will cannot access or override.

At Lexern Law Group, we are seeing a significant rise in “digital lock-out” scenarios across Illinois and Wisconsin—situations where heirs are legally entitled to an asset but are technologically incapable of retrieving it. This growing challenge is why estate planning for digital assets has become a critical, non-negotiable component of modern wealth and legacy protection.

The Estate Planning for Digital Assets Challenge

Traditional estate laws were built for a world of filing cabinets, not cloud servers. Today, your online accounts are governed by user agreements that typically terminate at death and often restrict access—even for legally appointed fiduciaries. Without comprehensive estate planning for digital assets, your digital footprint can be deleted, frozen, or lost forever.

Estate planning for digital assets ensures:

• Your heirs have legal authority and technical access

• Your fiduciaries avoid violations of federal cybercrime laws

• Your digital legacy—personal and financial—is fully protected

1. Identifying Your “Digital Wealth”

A strategic inventory is the foundation of effective estate planning for digital assets. For high-net-worth individuals, digital property may include:

Financial Digital Assets

• Cryptocurrency wallets and private keys

• DeFi platforms and staking accounts

• Online-only brokerage and trading accounts

• Digital payment systems with stored value

Intellectual and Creative Property

• Digital art and NFTs

• AI-generated business assets

• Online publications, blogs, and digital royalty streams

• Software, code repositories, and subscription-based services you own

Business and Operational Assets

• Domain names with significant market value

• Website hosting accounts and admin dashboards

• Cloud-based CRM or ERP systems

• Professional networking, advertising, and e-commerce accounts

Understanding the full scope of your digital holdings is the first step in ensuring they are preserved, accessed, and transferred according to your wishes.

2. The Role of a Digital Executor

Traditional executors often lack the technical skills or authority needed to manage digital assets. That’s why modern estate planning for digital assets includes naming a Digital Executor—a fiduciary specifically empowered to access, manage, transfer, or close digital accounts.

Illinois and Wisconsin both follow the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which allows access only when:

• The Digital Executor is explicitly named

• Your estate plan clearly authorizes digital asset management

• You’ve provided proper consent in your Will, trust, or power of attorney

Without these legal authorizations, even your executor may be blocked from accessing assets you intended them to handle.

3. Implementing a Secure Digital Vault

In 2026, writing passwords on paper is no longer sufficient—or safe. High-net-worth families increasingly rely on encrypted Digital Vaults to store:

• Passwords and authentication keys

• Private keys and seed phrases

• Recovery instructions

• Account inventories and ownership documentation

The most advanced vaults offer emergency access protocols that allow fiduciaries to retrieve critical information only when legally appropriate. This ensures your privacy during life and seamless asset transition after death—an essential piece of estate planning for digital assets.

4. Planning for “Digital Incapacity”

Estate planning for digital assets must also address temporary incapacity, not just death. If you become unable to manage your online business, investment platforms, or automated financial systems, who has authority to step in?

Your Durable Power of Attorney must include explicit digital asset provisions. These clauses protect your chosen agent from violating federal anti-hacking laws and ensure your digital life continues to operate without disruption.

Effective planning helps prevent:

• Loss of business revenue

• Locked accounts

• Missed renewal deadlines for domains or subscriptions

• Automated systems executing without oversight

Secure Your Legacy for the Digital Age

Your digital footprint is an essential part of the legacy you leave behind. Without proper planning, years of accumulated digital wealth can disappear into inaccessible accounts or be permanently deleted by service providers. Estate planning for digital assets is now a foundational element of modern wealth protection—and one that every high-net-worth family must address.

Based in Illinois and Wisconsin, Lexern Law Group provides sophisticated, forward-thinking legal counsel to protect both your tangible estate and your growing universe of digital property. Our team can help you identify, organize, and safeguard your digital assets to ensure your family inherits the full value of what you’ve built.

Secure your digital legacy—before it’s too late.