Digital assets are no longer minor side issues in estate planning. For many people, digital property such as cryptocurrency, websites, online businesses, podcasts, photos, and digital accounts can be just as valuable as traditional bank or investment accounts.
The problem is that when digital assets aren’t properly planned for or administered, they frequently become the source of estate disputes, beneficiary abuse, and litigation.
What Are Digital Assets?
A digital asset is generally anything that is created, stored, or accessed electronically and has actual or potential value.
Common digital assets include:
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Cryptocurrencies (Bitcoin, Ethereum, stablecoins, NFTs)
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Online business assets (websites, blogs, e-commerce stores)
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Podcast, video, music, and written content
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Loyalty program rewards and digital credits
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Photos, manuscripts, logos, and creative files
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Email, cloud storage, and social media content
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Intellectual property stored digitally
Digital accounts are the gateways to these assets and often require usernames, passwords, or two-factor authentication. Without proper authority, beneficiaries and fiduciaries may be locked out entirely.
Why Digital Assets Cause Problems in Estates
Unlike physical property, digital assets are easy to overlook and difficult to locate. If a loved one dies or becomes incapacitated without clearly documenting their digital property and access instructions, families are often left scrambling.
Common problems include:
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Assets no one knows exist
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Passwords no one can access
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Disputes over who controls online businesses or content
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Digital property being lost, stolen, or hacked
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Executors mishandling valuable digital assets
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Beneficiaries being denied assets they should receive
These issues are becoming more common—and more expensive to fix.
California Law and Digital Assets (RUFADAA)
California has adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA). This law allows an executor, personal representative, or trustee to access and manage a decedent’s digital assets—but only to the extent authorized by the will, trust, or applicable online tools.
Key points beneficiaries should understand:
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A will or trust can grant fiduciaries authority over digital assets
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Online tools (such as account settings with Google, Apple, or Facebook) may override estate documents
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Terms of service agreements can restrict transfer or ownership
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Without proper authorization, access may be denied
If estate planning documents are unclear—or ignored—digital assets can be mishandled or wrongfully withheld.
Not All Digital Assets Are Transferable
Some digital assets can be transferred freely. Others cannot.
For example:
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Website content or online businesses may be transferable
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Domain names are typically leased, not owned outright
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Some music, books, or software are licensed—not owned
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Cryptocurrency values can fluctuate wildly, complicating division
These issues make valuation and equitable distribution difficult, especially when multiple beneficiaries are involved.
Executor and Trustee Responsibilities
Executors and trustees have a legal duty to:
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Identify and safeguard digital assets
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Prevent theft, hacking, or loss
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Properly account for digital property
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Follow the will, trust, and applicable law
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Distribute assets correctly
If a fiduciary fails to protect digital assets—or loses them due to carelessness, poor security, or self-dealing—they can be held personally liable.
Digital Assets and Estate Litigation
Because digital asset law is still evolving, disputes frequently arise over:
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Ownership and access rights
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Failure to disclose or account for digital assets
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Improper valuation of volatile assets
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Breach of fiduciary duty
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Undue influence or fraud involving online property
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Lost assets due to hacking or ransomware
These cases often require court intervention to protect beneficiaries and enforce the decedent’s true intent.
How Albertson & Davidson LLP Helps Beneficiaries
When digital assets are mishandled, hidden, or wrongfully distributed, Albertson & Davidson LLP represents beneficiaries in trust and will litigation throughout California.
Our role may include:
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Identifying and securing digital assets
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Forcing disclosure and accounting
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Challenging improper administration
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Recovering misappropriated digital property
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Litigating trust and will contests involving digital assets
We focus on protecting beneficiaries and restoring inheritances when things go wrong.
Protecting Your Rights as a Beneficiary
If you believe valuable digital assets should be part of your inheritance—but are being mishandled, withheld, or ignored—you may have legal options.
Albertson & Davidson LLP handles trust and will disputes on a contingency fee basis, meaning no upfront legal fees in appropriate cases.
Call (855) 928-0542 or contact us online for a free consultation.
We stand, fight, win.
