As our lives become more digital, the question of what happens to our online accounts, cryptocurrencies, and data after we pass away has become critical. While traditional estate planning has focused on tangible assets and finances, governments and legal experts around the globe are now recognizing the need to regulate the transfer and management of digital legacies.
What Are Digital Assets and Why Do They Matter in Estate Planning?
Digital assets encompass much more than just financial cryptocurrency holdings. They include:
- Social media profiles (Facebook, Instagram, X, TikTok)
- Email accounts and cloud storage
- Online banking and payment services
- Digital media: photos, videos, e-books, music
- Loyalty points, airline miles
- Domain names and digital businesses
Digital assets are often protected by complex passwords, encryption, and governed by the service provider’s own terms—making inheritance and management after death legally and technically challenging.
Special legal consideration is required because:
- Many digital assets lack a paper trail.
- Access is restricted by security features or privacy law.
- Jurisdiction issues arise when assets are stored with providers in different countries.
- Service provider policies can contradict national law, sometimes overriding inheritance rights.
Israel’s Legislation on Digital Estate Rights: A New Approach
In October 2023, Israel took a pioneering step by enacting legislation specifically addressing digital estate rights. The law became effective in July 2025.
This law aims to ensure that digital assets are managed and transferred just like traditional assets, but with added focus on privacy, authentication, and secure access. Features of Israel’s law include:
- Comprehensive Definition: Digital assets are broadly defined to include all online accounts, digital currencies, photos, documents, and more.
- Digital Wills: Individuals can declare how their digital assets should be handled, nominate digital heirs or executors, and detail specific instructions in wills.
- Heir Access Rights: Legal mechanisms permit heirs to access accounts while addressing privacy and the rights of service providers.
- Strong Authentication & Security: Only verified heirs, through legal and technological checks, can access the deceased’s digital assets.
- Privacy vs. Inheritance: The law attempts to balance respect for the deceased’s privacy with the needs of heirs.
- Implementation Support: Clear guidelines for making legally binding digital wills and practical recommendations for individuals and professionals.
Current Challenges and Ongoing Practices
- Terms of Service Conflicts: Many providers bar heirs from gaining access—even in the presence of a will—unless explicitly permitted by platform features.
- Security Barriers: Two-factor authentication can prevent even authorized heirs from access.
- Cross-Border Confusion: Where assets are held by foreign providers (e.g. US-based tech giants), international law and company policy may restrict the application of local inheritance law.
Practical Steps for Managing Your Digital Legacy
- List Your Assets: Keep up-to-date inventory—logins, platforms, accounts, wallets.
- State Your Wishes: Include digital assets in your will. Where local law allows, appoint a digital executor and provide specific instructions.
- Utilize Platform Tools: Activate features like Facebook’s “Legacy Contact” or Google’s “Inactive Account Manager” to streamline posthumous access.
- Review Terms of Service: Familiarize yourself with key platforms’ posthumous account policies.
- Consult Professionals: As laws change and platforms update policies, work with legal experts knowledgeable in digital estate planning.
Conclusion
Digital assets are now an integral part of our legacy. Laws around the world—from Israel’s pioneering statute to evolving frameworks in the US, EU, and beyond—are racing to keep up with the complexities of online inheritance. As the rules shift, individuals have a unique opportunity—and responsibility—to plan for the fate of their digital property. Don’t wait to take inventory, document your wishes, and get expert advice to ensure that your digital legacy is properly secured for the next generation.
