What a digital estate inventory includes
Key takeaway
A digital estate inventory should identify accounts and assets, their providers or storage locations, ownership or license status, custody and recovery arrangements, disclosure directions, authority documents, and relevant business, valuation and tax records.
Use the following as an organizational checklist for a planning conversation.
Information to gather
- Accounts and assets. Identify each account or asset and its provider or wallet location.
- Ownership or license status. Record whether the entry concerns ownership or a license.
- Custody and recovery. Identify the custody arrangement and available recovery arrangements.
- Disclosure directions. Identify online directions concerning disclosure or nondisclosure.
- Authority documents. Locate relevant wills, trusts, powers of attorney and other authority documents.
- Supporting records. Identify relevant business, valuation and tax records.
Cryptocurrency custody and recovery
SEC staff educational guidance distinguishes custody arrangements: with self custody, the holder manages private keys, while third party custodians manage and control access to those keys. The guidance has no legal force.
A seed phrase can restore a wallet after loss of the wallet or private key, or damage or corruption of its hardware or software. Lost or stolen keys or recovery phrases may prevent access.
SEC staff advises against sharing private keys or seed phrases. As a practical security precaution, keep these secrets separate from inventory copies accessible to others.
Apple Legacy Contact information
For Apple's provider process, identify the Legacy Contact access key. Apple suggests keeping a printed copy with estate planning documents.
The contact needs both the access key and death documentation to request access after the account holder's death. The key is also needed to complete Legacy Contact Apple Account setup and access data.
The contact must be over 13 to request access, with age varying by country or region. Documentation requirements also vary, with Japan requiring a family certificate indicating death instead of a death certificate.
Excluded data includes purchased movies, music, books and subscriptions, plus iCloud Keychain payment information, passwords and passkeys.
Google Inactive Account Manager information
Google's provider process lets you configure a period of inactivity, select up to 10 data recipients, and choose all or specific data types. You can choose different data for different people, but some information cannot be shared.
The trigger is inactivity, which can occur for reasons other than death. Google uses the trusted contact's phone number to verify download access.
Contacts receive notification only after the selected inactivity period, rather than during setup.
Digital asset transaction records
Federal tax recordkeeping law requires people liable for tax or its collection to keep records prescribed by the Secretary. IRS guidance tells people with digital asset transactions to document purchases, receipts, sales, exchanges and other dispositions.
For digital assets received as income or as payments in the ordinary course of a trade or business, identify records of fair market value measured in U.S. dollars.
Two related terms
Digital asset. In Minnesota, for example, under its digital asset access law, a digital asset is an electronic record in which an individual has a right or interest. Underlying assets or liabilities are excluded unless themselves electronic records, and other states differ.
Private key. SEC staff guidance describes a private key as a randomly generated alphanumeric passcode that authorizes cryptocurrency transactions.
A business perspective on digital accounts
A talk participant describes communication services used by a team, offering a concrete example of business accounts to consider when assembling an inventory.
"we also, use Zoom Phone, which is a VIP phone, like a digital phone service that allows us to share phone calls, transfer phone calls, and easily go from a phone call to an actual zoom meeting."
Common questions
Can provider arrangements change?
Yes. Google lets you edit choices or turn off your plan through the Inactive Account Manager page, and Apple provides a process for removing Legacy Contacts.
Is a planning checklist the same as a probate inventory?
No. This planning checklist is an organizational aid, while probate inventory requirements depend on applicable law.
In Minnesota, for example, a personal representative must prepare and file or mail an inventory of property owned at death by the later of six months after appointment or nine months after death. Other states differ.
It must list property in reasonable detail, its fair market value at death, and the type and amount of any encumbrance. The duty excludes special administrators and successors whose predecessors already discharged it.
Copies must be mailed or delivered to the surviving spouse, all residuary distributees, and interested persons or creditors who request them. The representative need not personally receive a copy as spouse or residuary distributee.
What if property was omitted from a probate inventory?
In Minnesota, for example, a personal representative must make a supplementary inventory or appraisement upon discovering omitted property or an erroneous or misleading inventory value or description. Other states differ.
The supplement must show the new item's market value at death or the revised market value or description, plus appraisers or other supporting data, if any.
Copies or information must be furnished to persons interested in the new information. The supplement must be filed with the court if the original inventory was filed.