Financial Accounts, Cryptocurrency & Digital Property After Death

What Are Digital Financial Assets?

Digital financial assets include property, accounts, and financial interests that exist electronically or are managed through online platforms.

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These may include:

• Online banking and investment accounts: Financial accounts accessed through websites or mobile applications.

• Digital payment services: Accounts maintained through services such as PayPal, Venmo, and other payment platforms.

• Cryptocurrency: Bitcoin, Ethereum, and other blockchain-based assets.

• Digital collectibles and tokens: Certain non-fungible tokens (NFTs) and other transferable digital holdings.

• Domain names and digital property: Registered domains, websites, and other electronically maintained property rights.

• Online business interests: Revenue-generating digital accounts, websites, and related intellectual property.

Although these assets may be managed electronically, their ownership, transferability, and legal treatment can vary significantly.

A properly coordinated estate plan should consider the nature of each asset and the procedures necessary for its administration.

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What Happens to Online Financial Accounts After Death?

Online banking and investment accounts generally remain subject to the same ownership, beneficiary designation, and estate administration principles that apply to their underlying financial assets.

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The fact that an account is accessed through an application or website does not necessarily change who is entitled to the funds.

 

However, online-only records and account security procedures may create practical difficulties for surviving family members.

 

An executor may need documentation establishing legal authority before a financial institution will disclose information or permit estate-related transactions.

 

Beneficiary designations, joint ownership arrangements, and applicable account agreements may also determine how particular assets pass after death.

 

Identifying accounts and reviewing beneficiary arrangements before death can help reduce complications during estate administration.

 

How Is Cryptocurrency Handled in an Estate?

Cryptocurrency presents distinct estate planning considerations because ownership and practical access may depend on blockchain records, digital wallets, private keys, and third-party exchanges.

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Unlike traditional bank accounts, certain cryptocurrency holdings may not be recoverable through a financial institution if the information necessary to control them is lost.

 

What Happens to Bitcoin or Other Cryptocurrency When Someone Dies?

Cryptocurrency can be an asset of a deceased person's estate and may pass according to applicable beneficiary arrangements, estate planning documents, or inheritance law.

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However, legal entitlement to cryptocurrency does not necessarily provide the technical ability to access or transfer it.

 

For assets held in a self-custody wallet, losing the necessary private keys or recovery information may make the cryptocurrency permanently inaccessible.

 

Cryptocurrency maintained through an exchange may instead be subject to that provider's account recovery, verification, and estate administration procedures.

 

Should Cryptocurrency Be Addressed Separately in an Estate Plan?

Individuals with meaningful cryptocurrency holdings should consider whether their estate planning arrangements adequately address identification, fiduciary authority, secure access, and eventual distribution.

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Private keys and recovery phrases require particular care because unauthorized disclosure can expose assets to theft.

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These issues may warrant additional planning beyond the provisions commonly found in traditional wills and trusts.

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Can an Executor Access Digital Financial Property?

New York law provides a framework for fiduciary access to certain digital assets.

 

Under EPTL § 13-A-3.2, an executor or other personal representative may obtain disclosure of certain digital assets and account records from a custodian when the statutory requirements are satisfied, unless disclosure has been prohibited or a court directs otherwise.

 

These requirements may include a written request, death certificate, proof of fiduciary appointment, and additional account-identifying information.

 

However, the law does not automatically transfer ownership of property or grant unrestricted access to every financial platform.

Under EPTL § 13-A-2.3, fiduciaries do not receive greater rights than those held by the individual they represent merely because of the digital asset access statute.

 

Accordingly, digital financial planning should distinguish between legal ownership, authority to obtain information, and the practical ability to control or transfer an asset.

 

How Can You Protect Digital Assets Through Estate Planning?

Planning for digital financial property involves several important considerations:

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1. Identify Digital Accounts and Holdings

Maintain an organized and secure inventory of online financial accounts, cryptocurrency holdings, digital wallets, and other valuable digital property.

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2. Review Ownership and Beneficiary Arrangements

Determine whether assets are held individually, jointly, through an entity, or subject to beneficiary designations or contractual transfer provisions.

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3. Consider Fiduciary Authority

Review whether estate planning documents appropriately address digital asset disclosure and the responsibilities of executors, trustees, and agents acting under powers of attorney.

 

4. Establish Secure Access Arrangements

Consider how authorized fiduciaries will locate necessary account information without exposing passwords, cryptocurrency recovery phrases, or other sensitive credentials.

 

5. Coordinate With Your Broader Estate Plan

Digital financial assets should be considered alongside wills, trusts, beneficiary designations, tax planning, and business succession arrangements.

 

 

Plan Ahead With Eldon Trust & Estate

Digital assets can represent significant financial value, but they may also present challenges that traditional estate planning documents do not fully anticipate.

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At Eldon Trust & Estate, we help individuals and families consider how online financial accounts, cryptocurrency, and other digital property fit into their broader estate planning objectives.

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Thoughtful planning can help clarify fiduciary authority, identify important holdings, and reduce the risk that valuable digital property is overlooked during estate administration.

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Schedule an Estate Planning Consultation

 

For additional information, visit our Digital Asset & Legacy Planning page.

 

 

Sources & Legal References

New York Estates, Powers and Trusts Law, Article 13-A — Administration of Digital Assets

https://www.nysenate.gov/legislation/laws/EPT/A13-A

EPTL § 13-A-2.2 — User Direction for Disclosure of Digital Assets

https://www.nysenate.gov/legislation/laws/EPT/13-A-2.2

EPTL § 13-A-2.3 — Terms-of-Service Agreement

https://www.nysenate.gov/legislation/laws/EPT/13-A-2.3

EPTL § 13-A-3.2 — Disclosure of Other Digital Assets of Deceased User

https://www.nysenate.gov/legislation/laws/EPT/13-A-3.2

EPTL § 13-A-4.1 — Fiduciary Duty and Authority

https://www.nysenate.gov/legislation/laws/EPT/13-A-4.1

Internal Revenue Service — Digital Assets

https://www.irs.gov/filing/digital-assets

Internal Revenue Service — Frequently Asked Questions on Digital Asset Transactions

https://www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-on-digital-asset-transactions

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This information is provided for general educational purposes and does not constitute legal or tax advice. Digital asset ownership, transferability, accessibility, and taxation depend on applicable law, account agreements, asset characteristics, and individual circumstances. References provided are up-to-date with time of publication and should be verified prior to use.

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