How Probate Handles Digital Assets and Online Accounts
Much of modern life now happens online. Bank statements arrive by email, family photos sit in cloud storage, and many people hold property that exists only in digital form. When someone passes away in San Bernardino, the people handling the estate often find that these accounts are harder to reach than a filing cabinet or a safe deposit box. Passwords may be unknown, service providers may have strict privacy policies, and some digital property may carry real financial value. Understanding how probate in San Bernardino treats digital assets can help families prepare for these challenges. This article explains what counts as a digital asset, how California law controls access to online accounts, and what personal representatives can do to locate and manage this property.
What Counts as a Digital Asset?
The term digital asset covers a wide range of property and records that are stored electronically. Some of these items have clear monetary value, while others matter mainly to the family. Both types may need attention during probate.
Assets With Financial Value
Some digital assets can be worth a significant amount of money. Examples include cryptocurrency, online payment account balances, domain names, income-producing websites, and digital content that generates royalties. Assets like these are generally treated as part of the estate and may need to be identified, valued, and reported in the probate inventory. In some cases, their value can change quickly, which may affect how the personal representative decides to manage them while the case is open.
Assets With Personal or Sentimental Value
Other digital property has little market value but deep personal meaning. Photos, videos, emails, social media profiles, and personal writing often fall into this category. Families may want to preserve these items, close certain accounts, or memorialize a profile. Some purchased items, such as digital music or electronic books, may be licensed rather than owned, and the terms of service may limit whether they can be transferred to anyone after death.
How California Law Controls Access to Online Accounts
Access to a deceased person’s online accounts is not unlimited, even for a court-appointed personal representative. California has adopted a framework that balances the needs of fiduciaries against the privacy of the account holder and the people they communicated with.
The Revised Uniform Fiduciary Access to Digital Assets Act
California’s version of the Revised Uniform Fiduciary Access to Digital Assets Act, a model law drafted by the Uniform Law Commission, took effect on January 1, 2017, and appears in the California Probate Code beginning at section 870. The full text is available through California Legislative Information. The law explains when a custodian, meaning the company that holds the account, may disclose digital assets to a personal representative, trustee, or other fiduciary, and what documentation the custodian may request before doing so.
The Order of Priority for Account Instructions
The law follows a general order of priority when deciding whose instructions control. The table below summarizes how that order typically works.
| Priority | Source of Instruction | How It Generally Works |
|---|---|---|
| First | An online tool offered by the provider | Directions the user gave through a provider’s own designation tool generally control over conflicting instructions elsewhere. |
| Second | A will, trust, or power of attorney | If no online tool was used, written directions in estate planning documents may authorize or restrict disclosure. |
| Third | The provider’s terms of service | If the user left no direction, the account agreement generally governs what may be shared. |
Content Versus Catalog Information
The law also draws a line between the content of electronic communications and the catalog of those communications. Content refers to the actual substance of messages, such as the body of an email. The catalog refers to information like the names of senders and recipients and the dates messages were sent. Disclosure of content generally requires the user’s consent or a court order, while catalogue information may be easier for a personal representative to obtain.
Practical Challenges During Probate
Even with a legal framework in place, handling digital assets often involves practical obstacles. Personal representatives may need patience and careful documentation to work through them.
Locating Accounts the Decedent Never Mentioned
Many people never write down a complete list of their online accounts. A personal representative may need to review email inboxes, bank and credit card statements, mail, and devices to find evidence of subscriptions, payment accounts, and stored files. Recurring charges on a credit card statement are often a useful clue. Canceling unnecessary subscriptions may also help prevent the estate from continuing to pay for services no one is using.
Cryptocurrency and Private Keys
Cryptocurrency presents unique difficulties. Some holdings are kept on exchange platforms, which may respond to a properly documented request from a fiduciary. Other holdings are kept in private wallets that can only be accessed with a private key or recovery phrase. If that information cannot be found, the assets may be permanently inaccessible, regardless of what a court orders.
Security and Privacy Concerns
Logging into a deceased person’s accounts with a saved password may seem like a simple solution, but it can raise legal concerns and may violate the provider’s terms of service. Working through the provider’s formal request process, with copies of the death certificate and the letters issued by the court, is generally the more reliable approach.
Steps That May Make the Process Easier
Planning ahead is one of the most effective ways to reduce confusion around digital assets. A few practical steps may make a meaningful difference for the people who will manage the estate.
Creating a Digital Asset Inventory
A written inventory of online accounts, devices, and digital holdings can give a personal representative a clear starting point. The inventory can describe where each asset is located and how it may be accessed. Because passwords change frequently, many people store them securely in a separate place and update the list periodically rather than writing them into a will, which may become a public record during probate.
Including Digital Asset Instructions in Estate Planning Documents
Wills, trusts, and powers of attorney can include language that specifically authorizes a fiduciary to access digital assets and, if desired, the content of electronic communications. Clear instructions may reduce disputes and make it easier for providers to respond to requests. Account holders can also review the online tools some providers offer, since those designations may take priority over other documents.
Planning Ahead for a Digital Estate
Digital assets are now a normal part of most estates, and they deserve the same attention as a home or a bank account. California law gives personal representatives a path to access many online accounts, but the process often depends on what the account holder did, or did not do, before passing away. Careful record keeping and clear written instructions may reduce delays and confusion for loved ones. At Alden Probate, our team helps families understand how these rules apply to their situation and what steps may be available. If you are managing an estate that includes online accounts or digital property, our San Bernardino probate attorneys are available to talk through your questions and discuss possible next steps.
