Estate planning in Illinois has always involved a wide range of assets, from real estate to retirement accounts. But in recent years, the growing presence of digital property has added new layers families must consider.
Digital assets, once an afterthought, now play a central role in how individuals store value, communicate, and manage personal information. Because of this shift, families should take deliberate steps to include digital property in their estate planning efforts.
Defining Digital Assets and Their Value
Digital assets refer to any content, information, or rights stored or managed online. These include:
Social media accounts
Email accounts
Online banking profiles
Digital wallets and cryptocurrency
Cloud storage with personal or business files
Streaming and gaming accounts
Domain names and websites
Even if some of these items lack monetary value, they can hold significant personal or sentimental meaning. Others, like cryptocurrency or monetized blogs, may carry real financial worth. Either way, overlooking them can create confusion or disputes later.
As Illinois families prioritize transparency in estate planning, identifying and documenting digital holdings is a critical first step.
Legal Recognition of Digital Assets in Illinois
Illinois law has responded to the growth of digital property by adopting the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA). This legislation gives estate administrators limited authority to access digital content if certain conditions are met.
RUFADAA allows individuals to designate access to digital assets using:
Online tools provided by service platforms (e.g., Google’s Inactive Account Manager)
A will, trust, or power of attorney document
Clear written consent
However, service agreements often limit access unless the account holder made specific choices before death. That’s why proactive planning is essential. Families shouldn't assume that naming someone in a will automatically grants them digital access.
Steps to Take When Planning for Digital Assets
Preparing for the transfer or closure of digital property requires more than listing a few accounts. Each platform may have its own restrictions, and digital security measures often make unauthorized access difficult. With that in mind, Illinois families should take the following steps.
1. Create an Inventory
Start by compiling a detailed list of all digital assets. Include account names, associated email addresses, and descriptions of what each account holds or controls. Also, note any subscription services or accounts tied to automatic payments.
2. Store Access Information Securely
Although security remains a top concern, access must be possible for those handling the estate. Options include:
Using a password manager that allows emergency access
Keeping credentials in a safe deposit box with instructions
Writing access information into a secure addendum, not directly in a will
Whatever method is chosen, it should balance privacy during life with access after death.
3. Appoint a Digital Executor
Some states, including Illinois, allow individuals to name a digital executor. This person focuses solely on managing digital property. While this role may or may not be legally binding depending on the situation, naming someone can still offer clarity and direction.
4. Include Digital Assets in Estate Planning Documents
Wills and trusts should clearly state intentions regarding digital assets. If possible, reference the digital executor and direct fiduciaries to a separate list that includes account information. Because digital property changes frequently, that list should be kept up to date.
Including digital property in estate planning documents helps minimize confusion and disputes during administration.
Special Considerations for Cryptocurrencies
Cryptocurrency is one of the most sensitive and potentially valuable digital assets. Bitcoin, Ethereum, and similar currencies exist only in digital form, secured by private keys. Without those keys, assets are unrecoverable.
That means families must take extra care when planning for these items. Storing keys in a secure but accessible location, informing fiduciaries of their existence, and clarifying ownership are all necessary steps. Given the volatility and privacy concerns tied to cryptocurrency, estate planning strategies must address them directly.
Illinois families should also keep tax considerations in mind. Transferring or selling digital currency may create capital gains. Any estate that holds cryptocurrency should prepare for those implications.
Digital Business Interests and Online Income
Many people now earn money online through e-commerce, advertising, or digital content creation. These income streams often rely on platform accounts, third-party services, or content libraries. If those accounts aren't transferred or maintained, revenue may stop abruptly.
When estate planning includes digital business interests, documents should explain how the business functions, what accounts support it, and who should manage its continuity. That’s especially important for small businesses with online storefronts or intellectual property hosted digitally.
Protecting these income sources may require granting access to advertising platforms, inventory software, customer lists, or digital contracts.
Privacy and Legacy Considerations
Not all digital assets are financial. Personal messages, family videos, and social media posts often carry emotional value. Families may want to preserve these materials or control how they're shared.
Planning ahead helps clarify who should have access to private content. For example, some people may want their email accounts deleted, while others may want their family to retain photos and personal notes stored in cloud drives. Without instructions, platforms may make decisions by default or deny access completely.
Legacy preferences should be clearly stated. That could include:
Whether to maintain or close social media accounts
Whether to save or delete stored files
Whether to transfer ownership of photos, videos, or blogs
These decisions are personal, but including them in estate planning can help reduce uncertainty and stress.
How Illinois Law Firms Can Support Digital Planning
Given the changing nature of digital property, estate planning in Illinois should involve careful documentation and review. Law firms play a key role by helping clients:
Understand what qualifies as a digital asset
Identify conflicts between service agreements and planning goals
Draft appropriate language for wills, trusts, and powers of attorney
Address digital access issues with service providers
While not all platforms honor requests in the same way, Illinois law supports individuals who take clear steps to share or restrict access. Law firms can also advise on updates, especially when clients add new accounts or switch storage methods.
Updating Digital Asset Plans Regularly
Because digital property changes more often than traditional accounts, families should revisit their digital asset plans at least annually. That means updating inventories, changing access instructions, and revising estate planning documents when needed.
Major life changes—such as divorce, remarriage, or starting a business—can also affect digital ownership. Regular reviews reduce the risk of forgotten accounts or inaccessible information. When digital plans stay current, estate administration tends to go more smoothly.
Common Challenges in Digital Asset Management
Even with careful planning, families may encounter challenges. Some common issues include:
Locked devices with no backup access
Outdated passwords that no one can reset
Cloud subscriptions tied to credit cards that close upon death
Service providers refusing to release information
These problems illustrate why digital planning must be thorough. Families shouldn't wait until something goes wrong to consider these issues. Instead, consistent preparation offers the best chance of preserving digital assets and honoring final wishes.
Trusts in Managing Digital Assets
In some situations, placing digital property into a revocable living trust can help with management. A trust can include language about digital property, giving the trustee authority to manage, access, or transfer online accounts.
For individuals with valuable or complicated digital portfolios, a trust may offer greater control than a traditional will. It can also avoid probate delays and provide continuity for digital business operations.
Families in Illinois may want to discuss trust-based options when digital assets represent significant value or risk.
Digital assets are no longer optional topics in estate planning. As more daily life moves online, families in Illinois must account for digital property when organizing wills, trusts, and other planning documents.
Whether it's a photo library, a cryptocurrency account, or a monetized blog, digital property carries both personal and financial importance. When handled carefully, it can be transferred or preserved just like any other type of property.
Reach Out Today
With thoughtful planning, families in Chicago, Illinois, can reduce uncertainty, protect value, and make transitions less difficult. Digital property may not always be visible, but it's now an essential part of modern estate planning. Call Boodell & Domanskis, LLC today to get started with our estate planning services.
