Many people own more digital assets than they think, but very few have made plans for what will happen to those assets after they pass away.
Think about everything that exists only online. Bank accounts accessed through a website. Investment accounts with no paper statements. A PayPal or Venmo balance. A cryptocurrency wallet. Years of photos stored in the cloud. An email account containing decades of correspondence. Social media profiles. A blog or website that generates income. Subscription services billed automatically to a card that nobody else knows about.
Over the past two decades, digital assets have become a significant part of many people's financial and personal lives. However, most estate plans have not adapted to address these assets.
Without a digital asset plan, families often encounter locked accounts, inaccessible funds, lost memories, and legal obstacles. Some issues are inconvenient, while others are permanent. For example, a cryptocurrency wallet with an unknown password is not just inaccessible; it is lost permanently.
South Carolina provides a legal framework for some of these challenges. Understanding both its scope and its limitations is essential for effective digital asset planning.
What South Carolina Law Actually Says
South Carolina adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which is now codified in South Carolina law. This statute governs how fiduciaries — executors, trustees, agents under a power of attorney, and guardians — can access a deceased or incapacitated person's digital assets.
The framework allows individuals to authorize fiduciary access to digital assets through three prioritized methods: first, an online tool provided by the account custodian, such as Facebook's legacy contact or Google's Inactive Account Manager; second, a legally valid estate planning document addressing digital asset access; and third, the platform's terms of service, which typically deny access.
This hierarchy is important. A Facebook legacy contact designation takes precedence over a will. A will addressing digital assets overrides the platform's default terms. If neither exists, the platform's terms, which usually restrict access to the account holder, will apply.
By default, the statute allows fiduciaries to access a list of digital assets, but access to the content of emails and private messages requires explicit permission in an estate planning document or online tool. This distinction is crucial for families wishing to access a loved one's correspondence.
The Password Problem
The most immediate challenge for families is accessing accounts. Passwords, two-factor authentication, biometric locks, and security questions often prevent access to a deceased person's digital assets.
The instinct most people have is to write down their passwords somewhere and leave them with their estate documents. That is better than nothing, but it has real limitations. Passwords change. Accounts are added and forgotten. Two-factor authentication tied to a phone number or email address creates secondary barriers even when the password is known. And a handwritten list of passwords in a safe deposit box does not help a family member who needs access urgently.
A password manager offers a more practical solution. One master password grants access to all accounts and credentials. The master password and access instructions should be securely documented and shared with a trusted individual or estate planning attorney.
For those not using a password manager, a digital asset inventory listing accounts, approximate values, and access information is essential. This document must be updated regularly and stored securely to avoid security risks.
Cryptocurrency: The Stakes Are Higher
Cryptocurrency poses the greatest planning challenge among digital assets, as inadequate preparation can result in permanent and irreversible loss.
Unlike bank accounts, which can be accessed by executors with proper documentation, cryptocurrency exists solely on the blockchain and is accessible only through the private key. There is no customer service or legal process to recover a lost key. If the private key is lost or unknown, the cryptocurrency is permanently inaccessible.
The value of cryptocurrency holdings can be substantial. Individuals who purchased Bitcoin or Ethereum years ago may have significant assets that their families cannot access without proper information.
Effective cryptocurrency planning requires documenting the existence of holdings, identifying wallets or exchanges, and ensuring a trusted person has access to private keys or seed phrases. Hardware wallets must be physically located and their PINs or access methods documented. Exchange accounts require account details, login credentials, and coordination with the exchange.
Some individuals use multi-signature wallets, which require multiple keyholders to authorize transactions. This approach provides built-in succession planning and should receive the same attention as legal planning for significant cryptocurrency holdings.
Cryptocurrency holders should not assume their families will be able to access these assets without guidance. Failing to plan risks permanent loss of real value.
Social Media: Three Different Problems
After death, social media accounts present three distinct issues, each requiring a specific response.
Memorialization: Most major platforms allow accounts to be converted into memorial pages, which remain accessible to friends and family but cannot be modified. Facebook, for example, permits users to designate a legacy contact to manage the memorialized account. Planning should include understanding platform options and designating the appropriate person during the account holder's lifetime.
Deletion: Some individuals prefer their accounts be deleted after death. Most platforms will honor deletion requests from verified family members or executors, though processes vary and require documentation. If deletion is preferred, this should be documented and access information provided.
Content and legacy: Social media accounts may contain valuable photos and posts or private content the account holder wishes to delete. Estate plans should clearly state the account holder's preferences regarding this content.
Each platform, such as LinkedIn, Instagram, Twitter, and TikTok, has its own policies that may change over time. The best approach is to designate someone with both the authority and access information to manage each account according to the account holder's documented wishes.
Email and Digital Communications
Email is a significant digital asset and often one of the most legally complex to access.
South Carolina's digital assets statute requires clear authorization to access the content of electronic communications — meaning that without specific authorization in an estate planning document, a fiduciary may be able to see that an email account exists, but may not be able to read the emails in it. Federal law — specifically the Stored Communications Act — creates additional barriers to accessing electronic communications without consent.
Access to a deceased person's email is often essential for locating account information, important documents, and creditors, as well as for retrieving correspondence with personal or sentimental value.
The solution is to provide explicit permission in estate planning documents. A durable power of attorney and a will or trust should specifically authorize agents and executors to access electronic communications. Without this language, email providers may deny access even with a death certificate and court order.
Online Financial Accounts and Income-Generating Assets
In addition to cryptocurrency, many individuals have other online-only financial assets that families may be unaware of.
Examples include PayPal and Venmo balances, online savings accounts without paper statements, and app-based brokerage accounts. These assets can be lost if no one knows to search for them.
Income-generating digital assets, such as blogs, monetized YouTube channels, Etsy shops, Substack newsletters, and Amazon Associates accounts, are often overlooked. These assets may have ongoing obligations and income, requiring active management after death.
Executors cannot manage assets they do not know exist. Estate plans should address all digital assets, including those that generate income or have obligations, by including them in the digital asset inventory.
What a Complete Digital Asset Plan Looks Like
A comprehensive digital asset plan consists of several coordinated components.
A digital asset inventory is essential. It should list all accounts, their contents, approximate values, and access information. This document must be updated regularly and stored securely.
Estate planning documents should include specific language authorizing fiduciaries to access digital assets and electronic communications, ensuring compliance with South Carolina law.
Online tool designations, such as legacy contacts and inactive account managers, should be established on all available platforms, as these take priority over estate planning documents under South Carolina law.
Access information for critical accounts, including password manager credentials, cryptocurrency keys, and hardware wallet PINs, should be securely documented and accessible to a trusted individual.
It is essential to communicate the existence and location of the digital asset plan. Even the most comprehensive plan is ineffective if no one knows about it or how to access it.
A Practical Starting Point
If this process feels overwhelming, begin by addressing the most critical question: do you hold any cryptocurrency, and does someone else know how to access it?
Next, review all financial accounts, including online banking, investment accounts, and payment services, to ensure someone has access information or that accounts are properly set up to transfer to the estate.
Then address social media and email accounts, which may have lower financial value but significant emotional importance for surviving family members.
Finally, consult with an estate planning attorney to ensure your documents include the digital asset language required by South Carolina law to grant fiduciaries necessary access.
These steps do not need to be completed all at once, but addressing cryptocurrency access should be a priority.
If you need assistance, the attorneys at Collins Family & Elder Law Group can help.
