To include digital assets in your New York estate plan, you name who can access them and grant that person legal authority through the core documents you already use — your will, a trust, and especially your durable power of attorney — while leaving clear instructions and an inventory so your loved ones can actually find and manage everything online. Digital assets are not a separate kind of legal document; they are property and access rights that your existing plan must specifically address. If you skip this step, your family may inherit a house and a bank account but be locked out of your email, photos, cryptocurrency, and business logins. This guide explains, in plain English, what counts as a digital asset, why New York law makes planning essential, and how Morgan Legal Group coordinates your documents so nothing valuable disappears into the cloud.
What Counts as a “Digital Asset”?
A digital asset is anything you own or control that exists in electronic form, plus the online accounts used to access it. For most New Yorkers, that includes far more than they realize.
- Financial and currency: cryptocurrency (Bitcoin, Ethereum), online brokerage and banking logins, PayPal, Venmo, and digital payment apps.
- Sentimental and personal: photos and videos stored on iCloud or Google Photos, email accounts, and social media profiles (Facebook, Instagram, LinkedIn).
- Income-producing: websites and domain names, monetized YouTube or blog channels, online stores, and customer databases.
- Loyalty and credit: airline miles, hotel points, and rewards programs that may have real cash value.
- Subscriptions and records: cloud storage, password managers, and recurring services that must be cancelled or transferred.
Two things make these assets uniquely tricky: they are often protected by passwords and encryption, and access is governed by the terms-of-service agreements you clicked “I agree” to — agreements that frequently prohibit account sharing and do not automatically transfer on death.
Why New York Estate Planning Makes This Urgent
A complete New York estate plan is not one document but a coordinated set: a will, one or more trusts, a durable power of attorney, and a health care proxy, all working together. Each plays a distinct role with your digital life.
| Document | NY Authority | Role with Digital Assets |
|---|---|---|
| Last Will and Testament | EPTL §3-2.1 | Directs who inherits digital property after death; can name a “digital executor” to manage accounts |
| Revocable / Irrevocable Trust | EPTL Article 7 | Holds and passes digital assets privately, avoiding probate (revocable) or providing asset protection (irrevocable) |
| Durable Power of Attorney | GOL §5-1513 | Lets an agent manage accounts while you are alive but incapacitated |
| Health Care Proxy | Public Health Law Article 29-C | Appoints a medical agent — separate from financial authority |
Your will must comply with EPTL §3-2.1: it must be signed by you at the end of the document, witnessed by two attesting witnesses, and published (you declare it to be your will). A will that meets these formalities can name a digital executor and direct who receives your online property. If you die without a valid will, intestacy under EPTL Article 4 controls — the state’s default rules decide who inherits, and no one is specifically empowered to handle your digital footprint.
The durable power of attorney is the most overlooked tool here. Under GOL §5-1513, New York’s power of attorney is durable by default, meaning it survives your incapacity. Using the 2021 statutory short form, your agent can step in to pay bills, manage subscriptions, and access financial accounts if you are hospitalized or cognitively impaired — long before a will ever matters. Without it, a family member may need to go to court just to log in and stop a fraudulent charge.
A trust under EPTL Article 7 adds privacy and continuity. A revocable living trust lets your successor trustee manage digital assets without probate, keeping the inventory out of the public court record (note: a revocable trust offers no estate-tax savings). An irrevocable trust can hold valuable digital property for tax reduction, asset protection, or Medicaid planning subject to the 5-year look-back.
Building Your Digital Asset Plan: A Practical Checklist
Coordinating documents is only half the job. The other half is making access possible. Here is the approach we walk clients through:
- Create a digital inventory. List every account, platform, and asset — but never put passwords directly in your will. A will becomes a public document during probate. Store credentials in a secure password manager or a sealed memorandum referenced by your documents.
- Name a digital executor in your will. Choose someone tech-comfortable and trustworthy to carry out your wishes for online accounts.
- Grant explicit digital authority in your power of attorney. General language is often not enough — platforms and New York’s adopted access rules look for clear, specific authorization to access electronic communications and account contents.
- Use platform legacy tools. Set up Apple’s Legacy Contact, Google’s Inactive Account Manager, and Facebook’s legacy contact. These provider settings work alongside — not instead of — your legal documents.
- Address cryptocurrency carefully. Crypto with no recovery key is unrecoverable. Document how your fiduciary can locate keys and hardware wallets without exposing them while you are alive.
- Coordinate, don’t fragment. Make sure your will, trust, and power of attorney say consistent things so no one disputes who has authority.
How Digital Assets Affect New York Estate Tax
Digital property has real value, and New York counts it. For deaths on or after January 1, 2026 through December 31, 2026, the New York basic exclusion amount is $7,350,000. New York imposes a notorious “cliff” at 105% of the exclusion — $7,717,500. An estate valued over the cliff loses the entire exemption and is taxed from the first dollar, at progressive rates from 3% to 16%.
Cryptocurrency, valuable domains, and monetized online businesses can push an estate over that edge. New York has no gift tax, so lifetime gifting can reduce a taxable estate — but gifts made within 3 years of death are added back to the taxable estate. Planning ahead, especially with irrevocable trusts, can keep a digitally wealthy estate below the cliff. See our NY estate tax guide for a deeper breakdown.
Frequently Asked Questions
Should I list my passwords in my will?
No. A will can become a public record during probate. List the existence of accounts and name a digital executor, but keep actual credentials in a secure password manager or sealed memorandum referenced by your plan.
Can my power of attorney agent access my online accounts while I’m alive?
Yes, if your document grants explicit digital authority. Under GOL §5-1513 your power of attorney is durable by default, so your agent can manage accounts if you become incapacitated — but the authorization should specifically address electronic communications and account access.
What happens to my digital assets if I die without a will in New York?
Intestacy under EPTL Article 4 governs. The state’s default rules decide who inherits, and no one is specifically empowered to manage your online accounts, which can leave assets stranded behind passwords.
Does cryptocurrency count toward New York estate tax?
Yes. Crypto is property and is included in your taxable estate. With the 2026 exclusion at $7,350,000 and a cliff at $7,717,500, a sizable crypto holding can affect — or even eliminate — your exemption.
Protect Everything You’ve Built, Online and Off
Your digital life holds money, memories, and livelihoods. A New York estate plan that coordinates your will, trusts, and power of attorney — and squarely addresses your digital assets — ensures your loved ones can access and inherit what matters. For a full overview of how these pieces fit together, see our estate planning overview.
Russel Morgan, Esq. and the team at Morgan Legal Group help New Yorkers statewide build plans that keep nothing locked away. Schedule your 30-minute consultation with Russel Morgan »
Further reading from Morgan Legal Group: estate planning in New York.