Most Texans have a clear picture of what “estate planning” looks like: deciding who gets the house in Houston, how the savings account is divided, and who takes care of the family car.
But as we move further, a massive portion of your wealth and legacy no longer exists in physical form. It lives on servers, in the cloud, and on blockchain networks.
The question modern families face is this: If you were incapacitated or passed away tomorrow, would your family know how to access your digital life? Or would those assets, like sentimental photos, revenue-generating websites, and cryptocurrency portfolios, be lost in a digital black hole?
At Duffley Law, we believe that a truly comprehensive estate plan must protect everything you value, not just the things you can touch. This guide defines exactly what constitutes a digital asset under Texas law and categorizes them so you can evaluate the true scope of your digital footprint.
What Actually Counts as a Digital Asset?
In the context of Texas estate planning, a “digital asset” is broadly defined as an electronic record in which an individual has a right or interest. This definition, governed by the Texas Revised Uniform Fiduciary Access to Digital Assets Act (TRUFADAA), is intentionally broad to encompass the rapidly evolving tech environment.
However, “electronic record” is a legal term. For practical planning, it helps to categorize these assets into three distinct buckets: Financial, Personal, and Intellectual Property.
1. Financial Digital Assets
These are assets with direct monetary value. As of 2025, approximately 21% of U.S. adults own some form of cryptocurrency, yet a staggering number fail to integrate these holdings into their estate plans.
- Cryptocurrencies & Stablecoins: Bitcoin, Ethereum, and other tokens held in hot wallets (online exchanges like Coinbase) or cold storage (hardware wallets like Ledger).
- Non-Fungible Tokens (NFTs): Digital art, collectibles, or membership tokens that hold significant market value.
- Online Payment Accounts: Balances sitting in PayPal, Venmo, CashApp, or diverse fintech apps.
- Loyalty Rewards: Airline miles, hotel points, and credit card cash-back balances, which can often be transferred if planned for correctly.
- Betting & Gaming Accounts: Balances in online sports betting platforms or video game skins/currencies with real-world exchange value.
Because these assets are often secured by high-level encryption or private keys, they are the most at risk of being permanently lost without a specific access strategy.
2. Personal and Sentimental Assets
While these may not have a dollar figure attached to them, their emotional value is often priceless. For many families, losing access to a deceased loved one’s photo archive is more devastating than losing a bank account.
- Social Media Accounts: Facebook, Instagram, LinkedIn, X (formerly Twitter), and TikTok.
- Cloud Storage: Google Photos, iCloud, Dropbox, and OneDrive where family memories are stored.
- Email Accounts: Gmail, Outlook, and Yahoo. These are critical because they often serve as the “password reset” hub for every other account you own.
- Communication Histories: WhatsApp chats, text message backups, and voice notes.
3. Intellectual Property and Business Assets
For business owners and creatives, digital assets are often the engine of their livelihood. If you run a business, there can be intricacies regarding how these digital tools are transferred or wound down.
- Domain Names: The ownership rights to website URLs (e.g., yourbusiness.com).
- Digital Content: Blogs, eBooks, online courses, and monetized YouTube channels.
- Client Lists & CRM Data: Databases stored in the cloud (Salesforce, HubSpot) that represent the goodwill of a business.
- Affiliate Accounts: Revenue streams generated from referral links.
Why a Standard Texas Will Isn’t Enough
Many people assume that a standard will covering “all my tangible and intangible property” automatically grants their executor the right to hack into their laptop or access their email. This is a dangerous misconception.
In Texas, your digital estate is governed by a clash between two powerful forces: State Probate Law and Federal Privacy Laws (specifically the Stored Communications Act) combined with Service Provider Terms of Service (TOS).
The Role of TRUFADAA
Texas adopted the Revised Uniform Fiduciary Access to Digital Assets Act (TRUFADAA) to solve this problem. Before this law, if your executor tried to log into your email using your password, they could technically be violating federal anti-hacking laws or the provider’s Terms of Service.
TRUFADAA creates a legal hierarchy for access:
- Online Tools: An internal setting within the service (like Google’s Inactive Account Manager or Facebook’s Legacy Contact) trumps everything else.
- Legal Documents: If you haven’t used an online tool, specific language in your Will, Trust, or Power of Attorney governs access.
- Terms of Service: If you have neither of the above, the generic (and usually restrictive) Terms of Service of the platform apply.
If your estate plan does not explicitly reference TRUFADAA and grant specific authority to your executor to access “content of electronic communications,” companies like Google and Apple are legally required to deny access to protect your privacy, even if you are deceased.
The Hidden Dangers of Doing Nothing
When you fail to categorize and plan for digital assets, you are risking permanent loss and legal gridlock.
- The “Crypto Black Hole”: Unlike a bank account, there is no “forgot password” button for a non-custodial crypto wallet. If your heirs do not have the seed phrase (a 12-24 word recovery key), those funds are mathematically inaccessible forever. Billions of dollars in Bitcoin are currently lost due to this oversight.
- Identity Theft: Deceased individuals are prime targets for identity thieves. If social media and email accounts are left active and unmonitored, they can be hijacked to scam friends or open fraudulent lines of credit.
- Family Disputes: Without clear instructions on who controls the “digital narrative” (who gets to post the final status update, who gets to archive the photos), emotional conflicts often arise during an already difficult time.
- Probate Delays: Discovering digital assets mid-probate can stall the administration of the estate, leading to higher costs and delays.
Your Digital Asset Inventory Checklist
To position your estate for a smooth transition, you must move from abstract worry to concrete action. We recommend creating a “Digital Asset Inventory.” This document should exist separately from your public Will (since Wills become public record, and you do not want passwords in the public record).
Here is a breakdown to get you started:
Hardware Inventory
- Smartphones & Tablets: Device model and PIN code.
- Computers: Login passwords and encryption keys (e.g., BitLocker, FileVault).
- External Hard Drives: Physical location and password protection.
Online Accounts Inventory
- Financial: Name of institution, URL, username (do not write the password here; use a password manager reference).
- Social: Platform name and handle.
- Utilities: Auto-pay accounts for electricity, internet, and subscription services (Netflix, Spotify).
Access Credentials (The “Keys”)
- Password Manager: The master password to your LastPass, 1Password, or Bitwarden account. This is often the “Skeleton Key” to your entire digital life.
- 2FA Backup Codes: If you use Two-Factor Authentication, where are the backup codes stored? If your phone is locked, your executor may need these codes to bypass SMS verification.
Planning for Cryptocurrency in 2025
Cryptocurrency requires a distinct strategy because it operates outside the traditional banking system.
If you hold assets on a centralized exchange (like Coinbase), the process is similar to a bank account. Your executor can present death certificates and Letters Testamentary to claim the funds.
However, if you hold assets in a private wallet (Self-Custody), possession of the private key is ownership.
- Do not put your seed phrase in your Will.
- Do write your seed phrase on a physical medium (paper or metal plate) and store it in a secure location (safe, safety deposit box).
- Do leave instructions on how to use the seed phrase. Your executor may not know how to restore a wallet.
Securing Your Digital Legacy
The definition of “wealth” has changed, and your estate plan needs to catch up. If it’s protecting the value of a crypto portfolio or making sure your grandchildren can see your digital photo albums, clarity is key.
At Duffley Law, we handle modern estate planning that covers the full spectrum of your assets.
Don’t leave your digital life locked away. Contact us today to build a comprehensive plan that protects what matters most.