Florida Estate Planning for Digital Assets: Protecting Cryptocurrency, Accounts, and Online Property After Death

Digital Assets and Your Florida Estate Plan: What Happens to Online Property After Death? 

In today’s world, many valuable assets live entirely online—from cryptocurrency wallets to social media profiles and cloud-stored photos. Yet digital assets are often overlooked in estate planning discussions, which typically focus on physical property or financial accounts. Crafting a comprehensive Florida estate plan means accounting for all forms of property, including online accounts and digital assets.

What Are Digital Assets?

“Digital assets” generally include anything that exists in an electronic format. Examples could involve:

• Cryptocurrency holdings (e.g., Bitcoin, Ethereum)
  
  

• Online banking or investment accounts
  
  

• Social media profiles (Facebook, Instagram, LinkedIn)
  
  

• Email accounts (Gmail, Yahoo, Outlook)
  
  

• Digital media purchases (eBooks, music, movies)
  
  

• Online loyalty rewards or points from retailers or airlines
  
  

• Website domains or digital business assets
  
  

Each platform or provider typically has unique terms of service, privacy rules, and access restrictions, which can create challenges when someone passes away.

Why Digital Assets Matter in Your Estate Plan

1. Financial Value

   
   

• Cryptocurrency, domain names, and certain online accounts may hold significant monetary worth. Failing to include them in your plan could leave these assets inaccessible or unclaimed.
  
  

2. Emotional or Sentimental Value

   
   

• Digital photos, personal email correspondences, or social media accounts may carry intangible importance for loved ones. Preserving or archiving this data may be just as crucial as distributing physical heirlooms.
  
  

3. Legal and Privacy Concerns

   
   

• Under privacy laws and platform policies, your relatives or personal representative may not automatically gain access to your digital assets. Explicit instructions are needed to ensure they can access or manage these accounts.
  
  

Planning Steps for Digital Assets

1. Inventory Your Online Footprint

   
   

• Make a list of every platform, account, or subscription service you use. Include usernames, two-factor authentication settings, and general data about the account’s content or value.
  
  

2. Incorporate Instructions in Your Will or Trust

   
   

• Clearly designate how each digital asset should be handled. Some Florida residents utilize a revocable living trust to manage assets, including digital ones, in the event of incapacity or upon passing.
  
  

3. Authorize Access

   
   

• Florida has adopted versions of the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), giving personal representatives some access to digital accounts. Still, you often need explicit language to allow them to retrieve, manage, or close accounts.
  
  

4. Consider Password Management

   
   

• Safely store credentials in a password manager or an offline document. Provide instructions for how your fiduciary can access it if required.
  
  

5. Stay Updated

   
   

• Digital footprints constantly evolve. Revisit your list of digital assets regularly, especially after opening new accounts or investing in new technologies.
  
  

Potential Challenges

• Terms of Service: Many online platforms limit account access to the original user. If your instructions conflict with a provider’s policy, it can create complications.
  
  

• Security Risks: Storing passwords in an insecure manner or distributing them without care can lead to fraud or identity theft.
  
  

• Tax Implications: Cryptocurrency gains or losses may have specific tax implications if sold or transferred by your personal representative.
  
  

Conclusion

A robust Florida estate plan is no longer limited to bank statements and real estate deeds. Digital assets deserve the same attention to ensure seamless management or transfer. By inventorying your online presence, including specific authorizations, and storing credentials securely, you can protect both the monetary and sentimental value of your online world. When uncertain about laws or best practices, consulting a qualified attorney helps you navigate this evolving landscape while respecting Florida statutes on data privacy and fiduciary authority.

Disclaimer: This content is provided for informational purposes and does not constitute legal advice. No attorney-client relationship is formed by reading or responding to this material. For personalized guidance, consult a licensed Florida attorney. No aspect of this content has been approved by the Supreme Court of Florida.

Avoid These Common Will Mistakes Under Florida Law

Top 5 Mistakes Floridians Make When Writing a Will (and How to Avoid Them)

A Last Will and Testament is a cornerstone of estate planning, yet many Floridians overlook crucial details when creating one. Whether drafting a simple will or a more comprehensive plan, inevitable missteps can invalidate your intentions or spark disputes among heirs. At Smith Cors Law, we’ve seen how these avoidable errors cause stress and expense for families. Below, we highlight the top 5 mistakes people make and share guidance on building a valid, well-considered will that aligns with Florida law.

1. Failing to Meet Florida’s Execution Requirements

Mistake: Some people assume a handwritten note or typed document with only their signature is legally binding. But Florida statutes are strict about formalities.

Florida Law Mandates:

• The will must be in writing.

• The testator (person making the will) must sign at the end of the document.

• Two competent witnesses must also sign in the testator’s presence and in the presence of each other.

• A self-proving affidavit, while not required, streamlines probate by eliminating the need for witnesses to appear in court.

How to Avoid:
Use the proper witnessing procedure. If possible, execute the will in the presence of a notary and two witnesses, then add a self-proving affidavit. This ensures your will’s validity and reduces delays.

2. Forgetting to Update After Major Life Events

Mistake: Life changes—marriages, divorces, births, deaths—yet many people don’t revisit their wills, leading to outdated or unintended distributions.

Potential Consequences:

• A new spouse might claim an elective share if they’re not mentioned.

• Children from a subsequent marriage may be overlooked.

• Divorce can void specific provisions naming an ex-spouse, creating confusion or gaps in the will.

How to Avoid:

• Periodic Reviews: Check your will every three to five years.

• Post-Event Updates: Any marriage, divorce, birth, or significant financial change triggers an immediate review.

3. Overlooking Digital Assets and Beneficiary Designations

Mistake: Relying solely on the will to handle everything, including assets that pass outside probate.

Types of Assets That May Bypass a Will:

• Life Insurance: Pays directly to named beneficiaries.

• Retirement Accounts: IRAs, 401(k)s, or pensions distribute to the individuals listed on beneficiary forms.

• Payable-on-Death (POD) or Transfer-on-Death (TOD) Accounts: Pass directly to the named party.

Digital Assets (email, social media, cryptocurrency) also require separate directives to ensure a personal representative can access them.

How to Avoid:

• Review Beneficiary Forms: Make sure they match your current wishes.

• Create a Digital Asset Plan: Provide instructions for managing accounts and passwords securely.

4. Not Accounting for Florida Homestead Restrictions

Mistake: Attempting to devise homestead property in ways that conflict with Florida’s constitutional protections for a surviving spouse or minor children.

Homestead Rules:

• You typically cannot leave the primary residence to anyone other than your spouse if you have minor children, unless the spouse joins in the deed or there’s a valid marital agreement.

• Surviving spouses have statutorily defined rights (e.g., a life estate) in the homestead property.

How to Avoid:

• Homestead Planning: Consult an attorney to structure your will or trust so it doesn’t violate restrictions.

• Marital Agreements: If needed, have your spouse waive or modify homestead rights in a properly executed prenuptial or postnuptial agreement.

5. Writing a DIY Will Without Professional Guidance

Mistake: Relying on online templates or outdated kits that may not reflect current Florida statutes or your unique circumstances.

Common Issues:

• Incorrect witnessing or notarization.

• Vague language leading to will contests.

• Failure to align with other estate planning documents, like trusts or beneficiary forms.

How to Avoid:

• Legal Review: Even if you draft a preliminary outline, have a Florida-licensed attorney verify compliance with state laws.

• Personalization: A one-size-fits-all template rarely addresses special needs, blended families, or complicated assets.

Additional Pitfalls and Tips

1. Naming Unsuitable Personal Representatives
   
   

• Florida law requires that a personal representative (PR) be a Florida resident or closely related to the decedent. Name a responsible PR who meets these qualifications.

2. Poor Communication
   
   

• Surprises in estate plans can lead to disputes. Consider discussing your intentions with beneficiaries to set clear expectations.

3. Not Having Contingent Beneficiaries
   
   

• If a named beneficiary predeceases you and no alternate is listed, that portion may pass under intestate laws.

4. Failing to Address Debts
   
   

• Clarify which assets or funds should be used for debts and taxes to avoid burdening unintended beneficiaries.

How Smith Cors Law Can Help

At Smith Cors Law, we do more than just draft wills. We provide comprehensive estate planning services, ensuring every element—from your homestead property to your digital assets—is accounted for. Our process typically involves:

1. Initial Consultation: We learn about your family, finances, and concerns.

2. Document Preparation: This may include a will, trusts, powers of attorney, healthcare directives, and more.

3. Periodic Reviews: We encourage clients to revisit their plans regularly or after significant life changes.

4. Coordination with Other Professionals: Where necessary, we work with financial advisors or CPAs to align your legal documents with broader economic goals.

Frequently Asked Questions

Q1: What happens if I die without a will in Florida?
Answer: Your estate is distributed under Florida’s intestacy laws, which prioritize spouses and children. If none exist, distant relatives may inherit. This could run counter to what you would have wanted.

Q2: Is a handwritten will valid in Florida?
Answer: Florida does not recognize holographic wills that are solely in the testator’s handwriting and not properly witnessed. If a handwritten will meets the state’s witness requirements, it may be valid, but it’s risky.

Q3: Can I disinherit a child or spouse?
Answer: Generally, yes for a child, but Florida’s elective share and homestead protections limit disinheriting a spouse unless there’s a valid agreement or other statutory exception.

Conclusion

Drafting a will in Florida is both an act of foresight and love, ensuring your property and loved ones are protected after you’re gone. Yet overlooking key requirements or skipping legal guidance can undo your best intentions. By avoiding these five common mistakes, reviewing your estate plan periodically, and taking advantage of professional legal counsel, you can craft a will that respects Florida’s legal framework and secures your legacy.

If you’re ready to create or revise a will, contact Smith Cors Law. We’ll ensure your estate plan aligns with your objectives while adhering to every nuance of Florida law.

Disclaimer: This post is intended solely for informational use and does not replace personalized legal advice. No attorney-client relationship is formed by reading or responding to this post. Please consult a licensed Florida attorney for guidance specific to your situation. No aspect of this content has been approved by the Supreme Court of Florida.