To include digital assets in your New York estate plan, you name a trusted person to access them and you grant that person clear legal authority through the core documents you already use for everything else: your will, your trust, and especially your durable power of attorney. Digital assets—email accounts, photos in the cloud, social media, online banking, cryptocurrency, domain names, and loyalty points—do not pass automatically to your loved ones the way a bank account or a house might. Without instructions and authority, your family may be locked out of irreplaceable memories or valuable property. The good news for first-timers: you do not need a separate “digital will.” You simply add a short, well-drafted layer to a comprehensive plan, and New York law already gives you the tools to do it.
This is an essentials guide. We will keep the basics clear, explain why each document matters, and reassure you that organizing this is far simpler than it sounds.
What Counts as a “Digital Asset”?
A digital asset is anything you own or control that exists in electronic form, plus the online accounts that hold it. For planning purposes, it helps to sort them into a few plain-English buckets.
| Category | Examples | Why It Matters |
|---|---|---|
| Sentimental | Photos, videos, family emails, social media | Often irreplaceable; emotional value to heirs |
| Financial | Online banking, brokerage, PayPal, cryptocurrency wallets | Real monetary value that must be located and transferred |
| Business | Domain names, websites, online stores, client lists | Income-producing; may need to keep operating |
| Access tools | Password managers, two-factor authentication, email | The “keys” that unlock everything else |
Two points trip up first-timers. First, you usually do not own an account—you own a license to use it, governed by the provider’s terms of service. That is exactly why legal authority and written instructions matter. Second, cryptocurrency is genuinely lost forever if no one can find the private keys, so it deserves special attention.
The Documents That Carry Your Digital Plan
A comprehensive New York estate plan coordinates four documents together: a will, one or more trusts, a durable power of attorney, and a health care proxy. Each plays a role with your digital life. (For the big picture, see our estate planning overview.)
Your Will
Your will directs who inherits your property after death, and in New York it must meet the formalities of EPTL §3-2.1: two attesting witnesses, the testator signing at the end, and publication (telling the witnesses it is your will). You can use your will to leave digital property to specific people and to authorize your executor to access and manage your online accounts. If you die without a will, New York’s intestacy rules under EPTL Article 4 decide who inherits—and your executor may have a harder time persuading providers to grant access. Learn more on our wills page.
Your Power of Attorney
This is the document most people overlook, and it is the one that protects you while you are alive but unable to act—after a stroke, an accident, or a long illness. Under GOL §5-1513, New York’s power of attorney is durable by default, and the 2021 statutory short form is the modern version most attorneys use. A well-drafted POA expressly gives your agent authority over digital assets so they can pay bills online, manage your accounts, and keep your business running. Without it, your family may face a court process just to log in. See our power of attorney page for the essentials.
Your Trust
A revocable living trust (governed by EPTL Article 7) lets your successor trustee manage assets without probate, which can include holding valuable digital property like domain portfolios or business accounts. Note that a revocable trust avoids probate but provides no estate-tax savings; an irrevocable trust is the tool used for tax reduction, asset protection, and Medicaid planning (with its 5-year look-back). Our trusts page explains which type fits your goals.
Your Health Care Proxy
A health care proxy, under New York Public Health Law Article 29-C, appoints an agent for medical decisions only. It is distinct from your financial POA and does not grant account access—but it belongs in every complete plan so that your loved ones are not making medical decisions in a vacuum during a crisis.
A Simple, Five-Step Essentials Plan
You can get organized this week with these steps:
- Make an inventory. List your important accounts and devices—email, banking, social media, crypto, photos, business logins. You do not need to list passwords in the document itself.
- Store credentials safely. Use a reputable password manager, and make sure your fiduciary will be able to access the master key (your attorney can advise on the safest method).
- Name the right people. Choose your executor, trustee, and POA agent—and confirm they are comfortable handling technology.
- Grant legal authority. Have your attorney add digital-asset language to your will, POA, and trust so providers and courts recognize your fiduciary’s power.
- Keep it current. Review every few years or after a major life event. Accounts, platforms, and passwords change.
Don’t Forget the New York Estate Tax
Some digital assets—cryptocurrency, a profitable online business, valuable domains—carry real value and count toward your taxable estate. For 2026, the New York basic exclusion amount is $7,350,000 for deaths on or after January 1, 2026 through December 31, 2026. New York also has a tax “cliff”: an estate that exceeds 105% of the exclusion ($7,717,500) loses the entire exemption and is taxed from the first dollar, with progressive rates of 3% to 16%. New York has no gift tax, but gifts made within three years of death are added back to the taxable estate. If your digital holdings push you near these thresholds, planning matters. See our NY estate tax guide and our New York statewide guide for how these rules apply across the state.
Frequently Asked Questions
Do I need a separate “digital will”?
No. New York does not require a standalone digital will. The clearest approach is to add digital-asset authority and instructions to your existing will, power of attorney, and trust so everything is coordinated.
Can my family just use my passwords after I’m gone?
Logging in with someone else’s credentials can violate provider terms of service and even federal computer laws. The safe route is granting your fiduciary proper legal authority through your estate documents.
What happens to my cryptocurrency if I don’t plan?
If no one can locate your private keys or recovery phrase, the crypto is generally lost permanently. Record how it is stored (securely, not in the document text) and authorize your fiduciary to access it.
Who handles my digital assets if I’m incapacitated, not deceased?
Your power of attorney agent. Under GOL §5-1513, a durable POA with digital-asset authority lets your agent manage accounts while you are alive but unable to act yourself.
Get Started With Confidence
Including digital assets in your estate plan is one of the most considerate things you can do for the people you love—and it is far simpler than most first-timers expect. With a clear inventory and the right language in your core documents, your memories, money, and online life are protected.
Ready to take the first step? Schedule a consultation with Russel Morgan, Esq. and the team at Morgan Legal Group to build a New York estate plan that includes your digital world. Book your 30-minute appointment here.
Further reading from Morgan Legal Group: estate planning in New York.