What Are Digital Assets?

As more of our lives shift online, estate planning has expanded to include a relatively new but increasingly important category of property, digital assets. These assets can carry financial, sentimental, or practical value but are often left out of traditional estate plans. In a digital age that oversight can have serious consequences.

In Ontario, digital assets are becoming a key consideration in estate planning, especially as the law has not yet caught up with the complexities of online ownership and access.

Understanding Digital Assets

Digital assets refer to any electronically stored content, account, or information that a person owns or controls. In Ontario, there is no single statute that defines digital assets, but they are increasingly treated as part of a person’s estate. Some digital assets have obvious financial value like cryptocurrency wallets, which store digital currencies secured by encryption (such as Bitcoin). Others carry personal or practical significance, such as email accounts, online banking accounts, or digital photo libraries.

Digital assets may also include social media profiles, websites, e-commerce accounts, loyalty points, airline rewards, or cloud storage accounts. While some online subscriptions or streaming platforms may have little to no transferable value, they do form part of a person's digital footprint and may require cancellation or management after death.

Whether stored locally on a device or accessed through the cloud, digital assets are deeply embedded in our lives and can become relevant to estate planning in a variety of ways.

Why Digital Assets Matter in Ontario Estate Planning

Digital assets introduce unique challenges into the estate planning process. Most digital assets are protected by passwords, encryption, or service agreements that restrict access. There is currently no Ontario law that automatically grants executors or power of attorneys the right to access digital accounts. Without clear authorization, your executor or Power of Attorney may face barriers when trying to locate or manage these assets. If these assets are inaccessible, the loss can be significant.

Unmonitored digital accounts also present security risks. Identity theft and fraud are not uncommon, and dormant profiles or email addresses can be exploited if not properly closed or protected.

Even when no financial or emotional value is involved, digital assets still affect estate administration because executors may need to access digital records to gather financial information, cancel accounts, or comply with reporting requirements.

The Role of Canadian Privacy Laws

Planning for digital assets also means understanding how federal privacy laws may affect your estate. In Canada, the Personal Information Protection and Electronic Documents Act regulates how private sector organizations handle personal data. Even with a Will or Power of Attorney, online service providers may refuse to share data unless there is explicit authorization and clear legal language.

This is especially important in Ontario, where privacy legislation intersects with provincial estate law but does not resolve the question of digital access on its own. For this reason, your estate planning documents should be carefully drafted to address these limitations and provide your executor and Power of Attorney with the authority they need.

Including Digital Assets in Your Estate Plan

To help your executor manage your digital assets effectively, consider taking the following steps.

• Create a digital asset inventory 

  Make a list of your digital property and accounts such as email, online banking platforms, loyalty programs, and cloud storage. Be sure to securely store your access information such as passwords and two-factor authentication details. Avoid placing sensitive login details directly in your Will, as it becomes public once probated.

• Authorize access in your legal documents 

  Your Will and Power of Attorney documents should explicitly give your executor and power of attorney the authority to access, manage, and dispose of your digital assets. Without this, service providers may refuse access under their terms of service or due to privacy concerns. Depending on the complexity of your digital life, you may wish to name a trusted individual specifically in your Will to handle your digital property.

• Review account-level options 

  Some platforms allow users to pre-authorize access or appoint a legacy contact. While not a replacement for legal planning, these settings can complement your estate plan.

Digital assets are part of the legacy you leave behind. By identifying these assets and clearly authorizing someone to manage them, you can reduce stress for your loved ones and help avoid costly or emotional loss. As technology continues to evolve, planning for digital assets is no longer optional, it’s essential.

At E is for Estates, we help individuals and families plan for the full picture, including digital assets. We are here to help ensure your estate plan includes your digital life. Reach out today to get started.

This article is intended for informational purposes only. For personalized advice tailored to your specific circumstance, please reach out to the E is for Estates team.

Erin L. Watson, B.A., JD

Lawyer & Notary Public

E is for Estates