If your phone disappeared today, could your spouse log in to pay bills, access family photos, or manage your online banking? For many families, the answer is no. That is exactly why digital asset planning has moved from a niche topic to a core part of estate planning. In our practice, we see the fallout when loved ones are locked out of the accounts that hold money, memories, and critical information, right when they are already dealing with a medical crisis or an unexpected loss.
Digital assets include far more than cryptocurrency. They cover email, cloud storage, online subscriptions, loyalty points, social media, business dashboards, and even the devices that control your smart home. When these items are not planned for, families can lose access permanently or spend months trying to rebuild a digital trail.
At Mike Massey Law, we help Texans turn practical instructions into legally effective documents, so families are not left guessing. If you are working with estate planning attorneys in Austin, digital assets should be on the checklist right alongside your will, powers of attorney, and any trust planning.
Digital asset planning basics for Texas families
Digital asset planning is the process of identifying what you own online, deciding who should control it, and giving that person the legal authority and practical information to act. It helps to think in three layers.
First is ownership, meaning what belongs to you. That could be a PayPal balance, a domain name, a photo library, a rideshare driver account, or points tied to an airline profile.
Second is access, meaning the ability to log in and use the account. Access is often controlled by passwords, two-factor authentication, biometric locks, and device encryption.
Third is authority, meaning the legal right to handle the asset. Even with a password, a platform may refuse to cooperate if your documents do not authorize your executor, trustee, or agent to manage digital assets.
In Texas, the language in your will, your revocable living trust, and your powers of attorney matters. A plan that addresses all three layers is the one that works when your family needs it.
Mistake 1: Leaving the keys to your life in one fragile place
One of the most common failures we see is relying on memory or a single sticky note style solution. People tell a spouse, I have it written down somewhere, or they assume a phone will unlock everything. Then a device updates, a password changes, or two-factor authentication starts sending codes to an old email address, and the whole chain breaks.
Another version of the same mistake is putting passwords directly inside a will. A will can become part of a public court record during probate. Even when a will is not widely available, it is still a document that may be copied and circulated among multiple people. That is not a secure place for login details, and it can create identity theft risk at the worst possible time.
How to avoid it
Use a secure password manager with emergency access features, and keep a simple written map that tells your fiduciary how to find what they need. That map can list the location of your password vault, the email used for two-factor authentication, and which device unlocks the vault. Update it anytime you change your primary phone or email. The goal is not to reveal every password in your estate documents. The goal is to make sure the right person can obtain them safely when the time comes.
Mistake 2: Not creating a workable digital asset inventory
Families rarely get stuck because they cannot guess a password. They get stuck because they do not know what exists. If nobody knows that an account exists, nobody can claim it, close it, or preserve it. That can mean unclaimed balances, ongoing subscription charges, lost business records, and confusion over recurring payments tied to a card on file.
A solid digital inventory does not need to be complicated. It needs to be complete enough that someone else can step in, triage what matters, and keep the lights on for your household. Think of it as a map, not a diary. It should identify accounts, devices, and what each item is used for.
What your inventory should cover
Include your primary email addresses, financial apps, cloud storage, social media, subscriptions, digital wallets, and any accounts connected to a side business. List the devices that unlock those accounts, including phones, laptops, and tablets. Note where two-factor codes go and who has the authority to receive them. Also identify which accounts are mission critical, such as banking, utilities, and insurance portals. A monthly reminder on your calendar can make updates painless and helps keep the inventory current.
Mistake 3: Failing to coordinate beneficiaries, pay-on-death settings, and your estate plan
Some digital and financial platforms let you name beneficiaries or set transfer instructions. Others have their own legacy tools that control what happens after death. If your account settings point in one direction and your estate plan points in another, families can end up in conflict, and the platform will usually follow its own rules first.
This shows up with investment apps, payment platforms, and certain crypto custodians. It also shows up with social media accounts where a legacy contact has limited powers that do not match what the family expects. Even digital storefronts can cause trouble if a spouse expects to keep an online business running but does not have the right access or transfer rights.
The solution is coordination. If a child is listed as the transfer recipient for a valuable digital asset, but your will or trust plan says something different, that gap can trigger resentment and accusations of unfairness.
How to avoid disputes
We align account designations with the broader plan. For families using revocable living trusts, we also look at how online accounts should be titled or controlled so your successor trustee can act quickly. That coordination is where living trusts attorneys in Austin add value, because the goal is not just to create a trust. It is to make sure your digital assets follow the same roadmap as the rest of your estate plan.
Mistake 4: Naming the right people, but not giving them clear authority over digital assets
Many people name an executor in a will and a successor trustee in a trust. The problem is that a platform may still refuse to release information unless the document includes specific authorization for digital assets. In practical terms, that means your loved one may be blocked from accessing email, cloud storage, or even key billing accounts, despite being the official fiduciary.
Email is usually the master key. If your family cannot access your primary email, they may not be able to reset passwords, receive two-factor codes, or locate account statements. Without authority, a platform can deny access, delay for months, or provide only limited account data, which can slow down estate administration and increase costs.
How to avoid court delays and dead ends
A strong plan includes the right digital asset language in your will, trust, and powers of attorney, plus a clear nomination of who should handle online tasks. We also recommend using platform tools where available, such as Apple Digital Legacy, Google Inactive Account Manager, and legacy settings on major social platforms. Those tools are helpful, but they do not replace legal authority. They work most smoothly when they are coordinated with your documents and your inventory, and when your fiduciary knows where to find the access map.
Mistake 5: Treating cryptocurrency like a normal online account
Cryptocurrency is not just another login. It is often controlled by private keys, seed phrases, and wallet structures that cannot be recovered by customer support. If the keys are lost, the asset can be lost permanently. That is why a plan for crypto needs more than a username and password.
Another pitfall is the assumption that a hardware wallet in a desk drawer is enough. If nobody knows how to access it, what network it is on, or where the backup phrase is stored, that device becomes a mystery item, not a usable inheritance. And if two people both have partial information, it can spark mistrust about whether someone is hiding assets.
How to avoid permanent loss
Plan the access path without exposing the keys. That can mean storing seed phrases in a secure physical location, using a reputable custody solution with clear successor steps, and documenting wallet types and networks in your inventory. It can also mean writing down instructions for how to confirm balances and how to transfer assets safely, without putting sensitive details into documents that might be shared broadly.
Mistake 6: Ignoring the accounts that quietly cost money or hold irreplaceable memories
Digital asset planning is not only about financial accounts. It is also about subscriptions, autopay services, and memory vaults like photo libraries. When nobody has access, a family may keep paying for services they do not want, or they may lose photos and messages that cannot be replaced.
This mistake is common when someone becomes incapacitated. A spouse may have authority to manage finances, yet still cannot get into the app that controls a recurring charge. In other cases, families argue over social media accounts, not because there is money involved, but because the account feels like part of a loved one’s identity and story.
How to avoid family conflict
Decide in advance what should happen to memory-based accounts. Should they be memorialized, archived, or deleted? Assign that task to a specific person and give them the information and authority to carry it out. A clear plan reduces the chance of a probate dispute later, because it replaces assumptions with instructions and gives everyone a steady point of reference.
A simple digital asset planning action plan you can do this week
You do not need a technology background to make progress. Here is a practical sequence we recommend:
- List your top ten accounts, starting with primary email, banking apps, and cloud storage.
- Identify where two-factor codes go and how a trusted person could receive them.
- Choose who should handle digital tasks if you pass away or become incapacitated.
- Coordinate those decisions with your will, powers of attorney, and any revocable living trust.
If you live near Houston, we can also help you build this into a broader plan during an estate planning consultation in Houston. The right meeting focuses on what your family would actually need, then translates that into documents that work with real platforms, real devices, and real life.
Turn digital chaos into a clear plan
Digital asset planning works most effectively when it is both practical and legally enforceable. When we meet with families, we are looking for clarity. We want your loved ones to know what exists, who is in charge, and how to carry out your wishes without a scramble.
If you already have a will or a trust, a digital asset update is often one of the highest impact improvements you can make. If you do not have those documents yet, building digital planning in from the start keeps your plan consistent and reduces the risk of disputes later.
We also know life does not always give warning. When a serious car crash or commercial vehicle collision turns a normal week into a crisis, families suddenly need access to phones, accounts, and records. Alongside our estate planning work, we help Texans after car and 18-wheeler accidents, and we share practical resources, including our 18-wheeler book, to help families understand next steps.
If you want to add digital asset planning to your estate plan, talk with our trust attorney in Austin or connect with our wills attorneys in Houston to map out a process that fits your family and your accounts.
To get started, contact our team here: Contact Mike Massey Law.
