To include digital assets in your New York estate plan correctly, you must do three things together: inventory every digital asset you own, grant your fiduciaries explicit legal authority to access them, and weave that authority through each of your core documents — your will, your trust(s), your durable power of attorney, and your health care proxy. Digital assets are not an afterthought you bolt on later. They are property, and in New York they require the same deliberate, coordinated planning as your home, your bank accounts, or your retirement funds. As specialists, we build this in from the first draft, because a digital-asset clause added after the fact — or omitted entirely — is one of the most common and most expensive estate-planning mistakes we see. This guide explains how to do it right the first time.
What Counts as a Digital Asset
A “digital asset” is far broader than most people assume. In a comprehensive New York estate plan, we account for all of the following:
- Cryptocurrency and digital wallets — Bitcoin, Ethereum, NFTs, and the private keys that control them.
- Financial and commerce accounts — online banking, brokerage, PayPal, Venmo, and loyalty or rewards programs with cash value.
- Email and cloud storage — Gmail, Outlook, iCloud, Google Drive, Dropbox — often the master key to resetting every other account.
- Social media and content — Facebook, Instagram, LinkedIn, YouTube channels, and monetized content that generates income.
- Business and intellectual property — domain names, websites, e-commerce stores, software licenses, and digital royalties.
- Personal records — photos, videos, and documents stored only in the cloud, irreplaceable to your family.
The critical distinction: you rarely own the account itself — you own a contractual license to use it. That is precisely why access requires explicit legal authorization, not just a list of passwords.
Why Passwords Alone Fail
Many New Yorkers believe that leaving a list of usernames and passwords solves the problem. It does not. Logging into a deceased person’s account using their credentials can violate the platform’s terms of service and federal computer-access laws. Worse, two-factor authentication, biometric locks, and account-recovery procedures will defeat a password list within months.
What your fiduciaries actually need is legal authority to direct the account custodian — granted in your binding estate documents. New York adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which lets you authorize your executor, trustee, agent, or health care agent to access your digital assets — but only if your documents say so. Silence in your will or power of attorney can leave your family locked out by default. This is the heart of doing it correctly the first time.
How Digital Assets Fit Into Each Core Document
A comprehensive New York estate plan coordinates four instruments. Digital-asset authority must appear in each one, because each governs a different moment in your life. Learn how they work together in our estate planning overview.
| Document | Governing Law | When It Controls | Digital-Asset Role |
|---|---|---|---|
| Last Will & Testament | EPTL §3-2.1 | After death (through probate) | Directs your executor to access, distribute, or close accounts |
| Revocable / Irrevocable Trust | EPTL Article 7 | During life and after death | Holds and manages titled digital assets without probate |
| Durable Power of Attorney | GOL §5-1513 | During incapacity, while living | Lets your agent manage accounts if you cannot |
| Health Care Proxy | Public Health Law Article 29-C | Medical incapacity | Authorizes your agent to access health-related portals and records |
The Will
Under EPTL §3-2.1, a valid New York will requires two attesting witnesses, your signature at the end of the document, and publication (declaring it to be your will). Your will should expressly empower your executor to access, manage, and distribute your digital assets. If you die without a will, intestacy under EPTL Article 4 governs — meaning the state, not you, decides who inherits, and no one is specifically authorized to handle your digital life. See our wills page for the full requirements.
The Trust
Under EPTL Article 7, a revocable living trust lets you re-title digital assets — domains, an online business, even certain wallets — into the trust so they pass to your beneficiaries without probate (note: a revocable trust offers no estate-tax savings). An irrevocable trust is the tool for tax reduction, asset protection, and Medicaid planning, subject to the five-year look-back; a Supplemental Needs Trust under EPTL 7-1.12 preserves a disabled beneficiary’s public benefits. Explore structures on our trusts page.
The Durable Power of Attorney
Your durable power of attorney under GOL §5-1513 — using New York’s 2021 statutory short form — is what protects you while you are alive but incapacitated. It is durable by default, meaning it survives your incapacity. Without explicit digital-asset language, your agent may be unable to pay an online bill, renew a domain, or secure a wallet during a medical crisis. Details are on our power of attorney page.
The Health Care Proxy
Distinct from the financial POA, your health care proxy under Public Health Law Article 29-C appoints an agent for medical decisions. With today’s patient portals and digital medical records, this document increasingly governs digital access to health information.
Don’t Forget the Estate-Tax Dimension
Some digital assets — particularly cryptocurrency, monetized channels, and valuable domains — can carry significant value, and that value counts toward your New York taxable estate. For 2026, the basic exclusion is $7,350,000 for deaths on or after January 1, 2026 through December 31, 2026. Be aware of the cliff: an estate exceeding 105% of the exclusion — $7,717,500 — loses the entire exemption and is taxed from the first dollar, at progressive rates of 3% to 16%. New York imposes no gift tax, but gifts made within three years of death are added back to your taxable estate. A volatile crypto portfolio can push an estate over the cliff unexpectedly — our NY estate tax guide explains the planning moves that keep you under it.
Frequently Asked Questions
Is cryptocurrency part of my taxable estate in New York?
Yes. Cryptocurrency is property and is valued at the date of death as part of your New York taxable estate, counting toward the $7,350,000 (2026) exclusion and the $7,717,500 cliff.
Can I just leave my heirs a list of passwords?
No. A password list is not legal authority and may violate platform terms and federal access laws. Your executor, trustee, and agent need express authorization in your will, trust, and power of attorney to access accounts lawfully.
What happens to my digital assets if I die without a will?
Intestacy under EPTL Article 4 controls distribution, and no one holds clear authority to manage or recover your accounts. The result is often permanent loss of crypto, photos, and online property.
Does my financial power of attorney cover medical portals?
Not necessarily. The financial POA (GOL §5-1513) and the health care proxy (Public Health Law Article 29-C) are separate documents governing separate decisions. Coordinated planning ensures both grant the digital access each context requires.
Plan It Correctly the First Time
Digital assets reward precision and punish improvisation. A clause in the wrong document, an outdated power of attorney, or a will that never mentions your online life can cost your family their inheritance and their memories. As New York estate-planning specialists, Morgan Legal Group builds digital-asset authority into every will, trust, power of attorney, and health care proxy we draft — coordinated, statute-compliant, and done right from the start. Review our statewide guide to see how we serve clients across New York.
Schedule a consultation with Russel Morgan, Esq. today: https://calendly.com/russel-morgan/30min
Further reading from Morgan Legal Group: why estate planning is so important.