What Happens to Digital Assets When You Die in Florida?

In today's digital world, a significant portion of your wealth, communications, and personal history exists online. When you pass away, your family may face serious challenges accessing these digital assets—or may not even know they exist. Florida has enacted legislation to address this issue, but effective digital estate planning requires more than just knowing the law.

What Are Digital Assets?

Digital assets encompass a broad range of online accounts and electronic records, including:

• Financial accounts: Online banking, investment platforms, payment services like PayPal and Venmo
• Cryptocurrency: Bitcoin, Ethereum, and other digital currencies stored in wallets or on exchanges
• Email accounts: Gmail, Outlook, Yahoo, and other providers
• Social media: Facebook, Instagram, X (formerly Twitter), LinkedIn, TikTok
• Cloud storage: Google Drive, Dropbox, iCloud, OneDrive
• Digital media: Purchased music, movies, e-books, and software licenses
• Business assets: Domain names, websites, online storefronts, intellectual property
• Loyalty programs: Airline miles, hotel points, credit card rewards
• Subscription services: Streaming platforms, software subscriptions, membership sites

  The value of these assets can be substantial. A cryptocurrency portfolio alone can represent a significant portion of an estate, and without proper planning, it may be permanently lost.

  Florida's Fiduciary Access to Digital Assets Act

  Florida adopted the Revised Uniform Fiduciary Access to Digital Assets Act (Florida Statute 740), which provides a legal framework for fiduciaries—personal representatives, trustees, guardians, and agents under a power of attorney—to access a deceased person's digital assets.

  The law establishes a three-tier priority system for determining whether a fiduciary can access digital assets:

  1. Online Tool Directions: If the account provider offers an online tool for designating what happens to the account after death (such as Google's Inactive Account Manager or Facebook's Legacy Contact), the user's directions through that tool take top priority.

  2. Estate Planning Documents: If no online tool direction exists, the user's will, trust, or power of attorney can grant a fiduciary access to digital assets. This requires specific language authorizing digital asset access.

  3. Terms of Service: If neither of the above applies, the provider's terms of service agreement controls access. Many providers' terms of service restrict or prohibit access by third parties, which can effectively lock your family out.

  The key takeaway is that your estate planning documents must specifically address digital assets to give your fiduciary the authority to access them.

  Special Challenges with Cryptocurrency

  Cryptocurrency presents unique estate planning challenges because it is decentralized and typically secured by private keys or seed phrases. Unlike a bank account, there is no institution that can grant access to a cryptocurrency wallet if you lose the keys. If your private keys are lost or inaccessible at your death, the cryptocurrency is effectively gone forever.

  Planning strategies for cryptocurrency include:

  • Document your holdings: Maintain a current list of all cryptocurrency wallets, exchanges, and accounts
  • Secure your private keys: Store private keys and seed phrases in a secure location that your fiduciary can access, such as a safe deposit box or a secure hardware device
  • Provide instructions: Include detailed instructions for how to access and transfer your cryptocurrency
  • Consider a digital asset trust: A trust specifically designed to hold and manage cryptocurrency can provide structure and continuity

    Planning Strategies for All Digital Assets

    Create a Digital Asset Inventory: Maintain a comprehensive list of all your digital accounts, including the account name, website or platform, username, and the type of asset or information stored. Do not store passwords in your will or trust, as these become public records or may be shared broadly.

    Use a Password Manager: A password manager like 1Password, Bitwarden, or LastPass stores all of your credentials in one encrypted vault. Share the master password or recovery method with your trusted fiduciary through a secure channel.

    Update Your Estate Planning Documents: Ensure your will, trust, and power of attorney include specific provisions granting your fiduciary authority to access, manage, and distribute your digital assets. Generic language may not be sufficient under the Florida statute.

    Use Platform-Specific Tools: Take advantage of tools offered by major platforms:

  • Google: Inactive Account Manager lets you designate who can access your data
  • Facebook: Legacy Contact settings allow you to choose someone to manage your memorialized account
  • Apple: Digital Legacy program lets you designate legacy contacts for your Apple ID

    Provide a Letter of Instruction: A separate, non-binding letter of instruction can provide your fiduciary with practical guidance on how to handle your digital assets, including which accounts to close, which to preserve, and how to access secured information. Update this letter regularly.

    Why This Matters Now

    Digital assets are growing in both volume and value. Failing to plan for them can result in lost wealth, inaccessible records, identity theft, and ongoing charges on accounts your family does not know about. The time to address digital assets in your estate plan is now, while you have the ability to organize your information and grant the necessary legal authority.

    Contact our office to discuss incorporating digital asset planning into your comprehensive estate plan.