The world of estate planning is evolving faster than ever—and it’s not just tax laws or family dynamics driving the change. A new category of assets has emerged that is rewriting the rules: digital assets.
From cryptocurrency to online businesses, social media accounts, NFTs, and cloud-stored data, our clients are living more of their lives online. And with AI-driven tools now integrated into daily business and personal life, the stakes for estate planning are higher than ever. Advisors who can navigate this new frontier will protect their clients from risk while adding meaningful value to their planning conversations.
Why Digital Assets Matter More Than Ever
Traditionally, an estate plan focused on real estate, bank accounts, investments, and personal property. But today:
- Wealth is increasingly digital. A client could hold six figures in cryptocurrency, yet if no one knows where the keys are stored, that wealth could vanish.
- Online businesses and content have value. E-commerce stores, YouTube channels, Substack newsletters, and monetized Instagram accounts can be part of a client’s estate.
- Access is everything. Without a clear plan, even locating and legally accessing digital accounts can become a nightmare for heirs or trustees.
Advisors can guide clients to identify what digital assets they own, how they are stored, and what steps need to be taken to protect and transfer them in a secure, legally compliant way.
The Cryptocurrency Conundrum
Cryptocurrency presents unique challenges in estate planning:
- Loss of Keys = Loss of Wealth
Unlike a traditional bank account, there is no “reset password” option for a lost wallet key. Without access credentials, cryptocurrency is unrecoverable. - Tax and Reporting Considerations
Crypto can trigger capital gains, gift tax reporting, and potential audit scrutiny. Proper documentation and planning are critical. - Custodial vs. Non-Custodial
Advisors should help clients clarify where their assets are held. Coins in a custodial exchange (like Coinbase) may be easier to manage than assets in cold storage, but each comes with its own risks.
Advisor Action: Encourage clients to maintain a secure inventory of wallet locations, keys, and instructions—ideally in a way that integrates with their trust or estate plan.
AI and Digital Life: The New Estate Challenge
Artificial intelligence is shaping how clients create, store, and interact with their digital life:
- AI-Created Intellectual Property
Clients using AI tools to create music, writing, artwork, or designs may be generating intellectual property that could hold long-term value. - AI-Driven Businesses and Automations
Entire businesses now rely on AI-driven workflows, subscriptions, and tools. If a trustee or successor can’t access or operate these systems, the business may collapse overnight. - Deepfakes and Cybersecurity Risks
Executors and trustees may also need guidance on protecting a decedent’s digital identity in a world where AI makes impersonation easier than ever.
For advisors, this means expanding the conversation beyond traditional documents. Estate planning now requires coordination with tech, cybersecurity, and IP professionals to ensure a client’s “digital life” survives them—or is shut down securely.
Advisor’s Role in the New Frontier
The good news: you don’t need to be a blockchain developer or AI engineer to help. What your clients need is a proactive guide.
Here are four ways advisors can take the lead:
- Inventory the Invisible
Ask clients about cryptocurrency, NFTs, AI-generated assets, and online revenue streams as part of your regular review. - Collaborate With Legal and Tech Teams
Estate planning attorneys and cybersecurity specialists can build the legal and technical framework for secure digital asset planning. - Encourage Secure Documentation
Digital assets must be documented—privately but accessibly—so trustees can manage or transfer them without delay. - Stay Informed
Laws and platforms are changing rapidly. A quick check-in with an estate planning attorney familiar with digital and AI assets can keep your advice current.
Why It Matters Now
The most heartbreaking estate issues today aren’t about family feuds or taxes—they’re about lost digital wealth that no one can access. Advisors who bring these conversations to the table demonstrate foresight and protect their clients in a way that traditional planning no longer can.
The estate plans of the future are here. They’re digital. They’re complex. And with your guidance, your clients can navigate this new frontier with confidence.
