How Michigan’s Digital Asset Law Could Affect Your Estate Plan

In today’s digital world, personal assets extend beyond paper files and family heirlooms. Your email, cloud storage accounts, social media profiles, online banking and cryptocurrency holdings are now a part of your estate. As a result, you need your estate plan to provide for digital access to these assets after your death, so that you don’t leave a significant portion of your estate out of reach.

Neglecting to plan for digital assets can cause significant problems. Executors may be locked out of vital accounts, and cryptocurrency can be lost forever if no one knows the private keys. Families may argue about social media memorialization, and overlooked accounts may lead to missed bills or assets. These pitfalls underscore the need for careful digital asset organization and documentation.

Michigan adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) in 2016. The law gives fiduciaries (such as executors, trustees and agents under power of attorney) limited, lawful ways to manage a decedent’s digital assets. However, this access isn’t automatic. The law respects user privacy and service provider agreements, requiring express permission before most digital information can be disclosed. It is crucial for digital asset provisions to be included in every Michigan estate plan.

RUFADAA covers a broad range of digital assets: from email and cloud storage to social media profiles (like Facebook and Instagram) and online photo albums (such as Google Photos). Financial accounts — including online banking, investments and bill pay systems — also fall under these rules. So do assets like cryptocurrency wallets, loyalty points, domain names and digital subscriptions. 

Under Michigan’s framework, fiduciaries can gain access to digital assets in three main ways: 

• Wills, trusts and powers of attorney should contain clear digital asset authorization provisions. Without these, your fiduciaries might receive only limited access or none at all. 

• Platforms such as Google, Apple and Facebook offer legacy or inactive account management tools, allowing users to designate access for trusted individuals. These settings take precedence over what’s written in a will or trust, so you should review and update them regularly. 

• In the absence of express permission, a court order may be necessary. This is an expensive and time-consuming process that often results in delays.

You should update your estate plan to reflect your full digital presence and to take advantage of legal protections. Create a detailed inventory of your accounts and devices, using each platform’s legacy feature where available and including explicit digital asset authority in your estate documents. Store sensitive information, like passwords, securely but separately from your will. Most importantly, seek advice from a qualified Michigan estate planning attorney to ensure full compliance with RUFADAA. 

Otlewski & Maloney, P.C. in Rochester Hills provides Michigan residents with effective assistance in all aspects of estate planning. Call us at 248-759-5641 or contact us online to set up an appointment.