Digital Assets in Probate: Cryptocurrency, Online Accounts & More

The Modern Estate Challenge Nobody Talks About

When someone passes away, most families know to look for bank statements, investment accounts, and property deeds. But what happens when the deceased’s most valuable assets exist entirely online? A Bitcoin wallet with six figures. A PayPal account holding business payments. Years of digital photos stored in the cloud. These digital assets, once considered niche or novelty, are now fundamental components of estate planning and probate administration.

The reality is stark: millions of people die each year with significant digital wealth they never documented, passwords they never shared, and accounts nobody in their family even knew existed. Unlike a house or a car, digital assets leave no physical trace. Without proper planning and access, executors can spend months or years trying to locate and recover these accounts, if they can access them at all.

North Carolina has recognized this modern challenge. The state adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), providing a legal framework for executors and administrators to access and manage digital property. But knowing the law exists and knowing how to practically apply it are two different things.

Understanding Digital Assets in Probate

Digital assets are any items of value that exist only in electronic form. They include far more than most people realize:

Cryptocurrency & Blockchain Assets

• Bitcoin, Ethereum, and other cryptocurrencies
• Non-fungible tokens (NFTs)
• Crypto exchange accounts (Coinbase, Kraken, etc.)
• Digital wallets and hardware wallets

Financial & Payment Accounts

• Online banking (Ally, Charles Schwab, online-only banks)
• PayPal and Venmo balances
• Digital payment apps (Stripe, Square, cash apps)
• Investment accounts with online-only brokers
• Peer-to-peer lending platforms

Personal & Communication Accounts

• Email accounts (Gmail, Outlook, Yahoo)
• Social media profiles (Facebook, Instagram, LinkedIn, Twitter/X)
• Text message and messaging apps (WhatsApp, Signal)
• Cloud storage (Google Drive, Dropbox, iCloud)
• Photo and video libraries

Content & Intellectual Property

• Domain names and websites
• Digital photos and video libraries
• Music, ebooks, and digital publications
• Blogs and content platforms
• Online business listings

Subscription & Access Rights

• Streaming services (Netflix, Spotify, etc.)
• Software licenses
• Membership accounts
• Gaming accounts and digital game libraries
• Loyalty and rewards programs

The challenge? Many of these accounts provide no indication of their existence unless you actively log in. A widow might never discover her late husband’s cryptocurrency portfolio if his hardware wallet sits in a desk drawer. An executor might never find the PayPal business account that generated steady revenue, thinking the income simply stopped.

North Carolina’s RUFADAA: What Executors Need to Know

North Carolina’s adoption of the Revised Uniform Fiduciary Access to Digital Assets Act creates a legal pathway for executors, administrators, and trustees to access digital assets after death. However, RUFADAA’s application is nuanced and varies depending on the type of account.

How RUFADAA Works

Under RUFADAA, executors have several avenues to access digital assets:

1. With the Decedent’s Account Holder Authorization - If the deceased left instructions in their will or other documents specifically granting access, executors can provide these documents to service providers.

2. With a Court Order - Executors can petition the North Carolina probate court for an order granting access to digital assets. Courts typically grant these when access is necessary to carry out estate administration.

3. With a Deceased User’s Password - If the deceased shared passwords (through a password manager, physical document, etc.), executors can use these to access accounts directly.

4. Service Provider Authorization - Many companies have their own policies allowing fiduciaries access if they provide probate documents and proof of authority. These policies vary significantly by company.

The Law’s Limitations

RUFADAA doesn’t override terms-of-service agreements with major tech companies. Facebook, Google, and Apple maintain their own policies about account access that may differ from North Carolina law. When conflicts arise, the company’s terms of service often prevail, meaning executors may need to navigate corporate policies rather than rely solely on state law.

Additionally, RUFADAA distinguishes between electronic communications (emails, messages) and digital assets (accounts with financial or personal value). Some accounts may be easier to access than others. Service providers also have the right to refuse access without a court order if their terms of service don’t permit it.

Finding Digital Assets: The Detective Work Begins

One of the biggest obstacles in handling digital assets is simply finding them. Unlike real property that appears in tax records, digital accounts can remain completely invisible without proactive searching.

Where to Begin the Search

Start with documents the deceased left behind:

• Bank statements and credit card bills (often show recurring charges from digital subscriptions)
• Tax returns (indicate income from online businesses or crypto transactions)
• Email account access (forwarded statements from PayPal, crypto exchanges, etc.)
• Backup contact info (phone numbers or backup emails registered to accounts)
• Devices (computers, tablets, phones may have auto-fill saved login information)

Check Common Platforms

Review email for account notifications from:

• Cryptocurrency exchanges (Coinbase, Kraken, Gemini, etc.)
• Digital payment services (PayPal, Stripe, Square, Venmo)
• Cloud storage providers (Google Drive, Dropbox, OneDrive, iCloud)
• Financial institutions (online banks and brokerages)
• Social media and tech platforms
• Domain registrars and web hosting services

The Browser History & Auto-Fill Advantage

If you have access to the deceased’s computer, browser history and auto-fill data can reveal frequently visited websites and services. Many browsers save login credentials, though these may be encrypted and inaccessible without the user’s password.

Financial Clues

Look at bank and credit card statements for recurring charges or transfers. Monthly subscriptions to streaming services, software, or digital asset exchanges often appear as line items. Withdrawals to crypto exchanges or transfers to PayPal accounts hint at digital holdings.

Accessing and Managing Cryptocurrency in Probate

Cryptocurrency presents unique challenges in probate administration. Unlike traditional bank accounts where a court order can compel access, cryptocurrency lives on decentralized blockchains where no central authority controls access.

The Core Challenge

Bitcoin and Ethereum are stored in digital wallets identified by long alphanumeric addresses. The owner’s private key, a unique cryptographic code, is required to access and transfer the cryptocurrency. If the private key is lost or unknown, the cryptocurrency becomes inaccessible, even with a probate court order.

Finding Cryptocurrency Holdings

Start by searching the deceased’s devices and documents for:

• Written or photographed private keys or seed phrases
• Screenshots of wallet addresses
• Passwords or passphrases to exchange accounts
• Hardware wallets (physical devices like Ledger or Trezor)
• Instructions or letters about cryptocurrency holdings
• Exchange account statements showing balances

Search email for notifications from crypto exchanges. Most exchanges send alerts for logins, withdrawals, and account changes.

Accessing Exchange-Based Crypto

Cryptocurrency held on exchanges (Coinbase, Kraken, Gemini) is more straightforward to access than self-custody crypto. If you can log into the exchange account with a password, you can see balances and initiate transfers. Service providers are increasingly accommodating fiduciary access with proper documentation:

• Provide the executor’s credentials and probate documents
• Some exchanges have specific fiduciary request processes
• File a court order if the exchange refuses voluntary access
• Be prepared to freeze accounts while identity and authority are verified

Self-Custody Cryptocurrency

Cryptocurrency stored in personal wallets (cold storage or hot wallets) requires the private key or seed phrase to access. Without it, the crypto remains frozen. If a hardware wallet is found but the PIN is unknown, professional recovery services may help, though they charge significant fees.

Tax and Reporting Obligations

Executors must report cryptocurrency holdings to the IRS on the final tax return. The fair market value at the date of death (or alternate valuation date) is included in the gross estate. If the executor later sells the cryptocurrency, gains or losses may be subject to income tax, this is a critical issue many executors overlook.

Social Media, Email, and Digital Identity

Digital accounts containing communications, photos, and personal information require different handling than financial accounts.

Email Accounts

Email often serves as the key to accessing other accounts. A deceased person’s email can be used to reset passwords on countless other services. Gaining access is therefore critical. The executor can request access from Google, Microsoft, Yahoo, and other providers with:

• Original or certified death certificate
• Probate court order or evidence of appointment as executor
• The deceased’s email address
• Government-issued ID

Social Media Memorial Options

Facebook, Instagram, and other platforms allow different approaches:

1. Memorialization - Convert the account to a memorial page viewable by friends, with “In Memory of” designation
2. Deletion - Permanently delete the account
3. Legacy Contacts - Designate someone to manage the account after death

To request action, provide the platform with a death certificate and proof of authority. Different platforms have different procedures, so check each company’s policy directly.

Managing Digital Photos and Cloud Storage

Google Photos, iCloud, Dropbox, and OneDrive often hold irreplaceable family photos. Gain access through the provider’s fiduciary request process using death certificates and probate documents. Consider whether to:

• Download and archive photos for the family
• Transfer the account or download accounts to a family member
• Delete the account if there are no items of value

Backing Up Digital Communications

Email, text messages, and social media messages can be downloaded and archived. Some families want to preserve these communications as part of the deceased’s legacy, while others prefer to delete them for privacy. Document any decisions and preserve records for the estate file.

Managing Digital Assets: A Systematic Approach

Navigating digital assets in probate requires careful organization and proper documentation. Here’s how to approach this:

Create a comprehensive inventory: Document all digital assets separately from traditional assets. For each account, note cryptocurrency holdings and wallet information, digital payment accounts and approximate balances, email and social media accounts, cloud storage services, domain names, and online business accounts.

Use a digital asset checklist: Create a systematic list to ensure nothing gets overlooked:

• Search email for account notifications and statements
• Check major cryptocurrency exchanges (Coinbase, Kraken, Gemini)
• Review PayPal, Venmo, and other payment services
• Locate cloud storage accounts and review contents
• Document social media platform accounts
• Check online banking and investment accounts
• List domain registrars and websites
• Document subscription services and streaming accounts
• Secure any passwords or recovery credentials stored by the deceased

Understand RUFADAA requirements: North Carolina’s Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) provides legal pathways for access, but each service provider has different requirements. Contact providers directly to understand their specific fiduciary access procedures and required documentation.

For cryptocurrency specifically: If the deceased held cryptocurrency through an exchange (Coinbase, Kraken), the process is straightforward, submit fiduciary access requests with probate documents. For self-custody cryptocurrency in hardware wallets, you’ll need the private key or seed phrase. If unavailable, professional recovery services exist but charge significant fees.

Step-by-Step Digital Asset Recovery

1. Gather documentation: Obtain certified copies of the death certificate and your appointment as executor. These are required by service providers and courts.

2. Search systematically: Review the deceased’s devices, documents, and email. Create a comprehensive list of all digital accounts identified.

3. Attempt direct access: If you have passwords or can reset them through email recovery, log in and document account balances.

4. Request service provider access: For accounts where you can’t access directly, submit formal fiduciary access requests to the service provider with required documentation.

5. File court orders if needed: If a service provider refuses access and it’s necessary for estate administration, work with a probate attorney to petition the court.

6. Liquidate or transfer assets: Decide whether to transfer accounts to beneficiaries, liquidate assets, archive digital content, or delete/memorialize accounts.

7. Document all actions: Maintain detailed records of every step, communication, and decision for the estate file and final accounting.

Conclusion: Getting Ahead of Digital Assets

Digital assets aren’t a fringe concern anymore. They’re a standard feature of modern estates, ranging from modest to substantial in value. Executors who ignore them risk beneficiaries losing valuable assets, missing income opportunities, and leaving the estate incomplete.

North Carolina’s adoption of RUFADAA provides a legal framework, but executing that framework requires systematic planning and attention to detail. By using comprehensive asset inventories, organized checklists, and proper documentation, executors can efficiently navigate the digital asset landscape. The result is a complete estate administration that honors the deceased’s wishes and preserves all assets, digital and otherwise, for the beneficiaries they intended to provide for.