1. What Are Digital Assets?

2. What Does Alberta Law Say?

3. How the Process Works

4. Cryptocurrency and Other High-Value Digital Assets

5. Common Mistakes

6. Costs and Considerations

7. When Should You Speak With an Estate Lawyer?

8. How Bridgestone Law Can Help

Introduction

Not long ago, most people's estates consisted of tangible assets such as homes, vehicles, bank accounts, jewelry, and personal belongings. Today, many of our lives exist online. We bank electronically, store family photographs in the cloud, manage investments through online platforms, communicate through email and social media, subscribe to digital services, and, in some cases, own valuable digital property such as cryptocurrency or online businesses.

These digital assets can be just as important as physical property, but they are often overlooked when preparing a will. Families are frequently left trying to access password-protected accounts without knowing what exists, where it is located, or whether the executor has legal authority to manage it.

In Alberta, digital assets generally form part of your estate if they are owned by you and do not automatically pass to another person through a contractual arrangement or beneficiary designation. However, accessing and administering those assets is often more complicated than dealing with traditional property. Each online platform has its own terms of service, privacy policies, and procedures for dealing with the death of an account holder.

Including digital assets in your estate plan can make the administration of your estate significantly easier while helping to preserve valuable financial assets and irreplaceable personal memories.

What Are Digital Assets?

Digital assets are electronic records, accounts, or property that exist in digital form and may have financial, practical, or sentimental value.

Examples include:

• email accounts;

• online banking and investment accounts;

• cryptocurrency and digital wallets;

• social media accounts;

• cloud storage;

• digital photographs and videos;

• websites and domain names;

• online businesses;

• digital reward points;

• subscription services;

• online payment accounts;

• intellectual property stored electronically; and

• electronic business records.

Some digital assets have significant financial value, while others have primarily sentimental importance.

What Does Alberta Law Say?

There is currently no single Alberta statute that comprehensively governs every type of digital asset after death.

Instead, the administration of digital assets generally involves a combination of:

• the Wills and Succession Act;

• the Estate Administration Act;

• privacy legislation;

• contract law;

• the individual terms of service governing each online platform; and

• where applicable, federal legislation relating to privacy and electronic communications.

An executor's authority generally extends to administering estate assets, including digital property that forms part of the estate. However, that authority does not necessarily give immediate access to password-protected accounts. Service providers often have their own requirements before providing access, transferring ownership, memorializing an account, or permanently deleting it.

Because each platform has different rules, digital estate administration often requires careful planning and documentation.

How the Process Works

Step 1: Identify the Digital Assets

One of the executor's first responsibilities is determining what digital assets exist.

This may include reviewing:

• personal computers;

• mobile phones;

• tablets;

• external hard drives;

• email records;

• financial statements;

• subscription services;

• password managers;

• online business records; and

• estate planning documents that identify digital accounts.

Creating an inventory of your digital assets during your lifetime can save your executor many hours of work and reduce the risk that important accounts will be overlooked.

Step 2: Determine What Has Financial Value

Not every digital asset has monetary value.

Some assets, such as family photographs or personal email accounts, are emotionally important but may not generate income.

Others may represent significant estate assets, including:

• cryptocurrency;

• online investment platforms;

• monetized websites;

• online businesses;

• digital intellectual property;

• domain names;

• online storefronts; or

• revenue-generating social media accounts.

The executor should determine which assets require immediate attention to preserve their value.

Step 3: Review the Terms of Service

Each online service has its own rules governing what happens after an account holder dies.

Depending on the platform, the executor may be required to provide:

• a death certificate;

• probate documents;

• proof of appointment as executor;

• identification;

• court documents; or

• additional supporting information.

Some platforms allow accounts to be transferred or memorialized, while others may permanently close or delete the account after receiving appropriate documentation.

Step 4: Protect Sensitive Information

Executors should ensure that digital assets are protected throughout the administration.

This may involve:

• securing devices;

• changing passwords where authorized;

• preventing identity theft;

• cancelling unnecessary subscriptions;

• preserving important electronic records; and

• maintaining appropriate privacy for the deceased's personal information.

Proper digital security is an increasingly important part of modern estate administration.

Cryptocurrency and Other High-Value Digital Assets

Some digital assets require special attention because they may represent a significant portion of an estate's value.

Cryptocurrency

Cryptocurrency is one of the most challenging digital assets for executors.

Unlike a traditional bank account, cryptocurrency is often controlled entirely by private keys, recovery phrases, or hardware wallets. If these credentials cannot be located after death, the cryptocurrency may be permanently inaccessible.

Common examples include:

• Bitcoin;

• Ethereum;

• Solana;

• XRP;

• Litecoin; and

• other digital currencies.

For this reason, anyone who owns cryptocurrency should ensure their executor knows that it exists and where instructions for accessing it can be found. However, passwords, recovery phrases, and private keys should be stored securely and should not be written directly into a will, as a probated will may become part of the public court record.

Online Businesses

Many Albertans operate businesses entirely or primarily online.

These may include:

• e-commerce stores;

• subscription businesses;

• YouTube channels;

• blogs;

• digital courses;

• software businesses;

• advertising websites; or

• online consulting services.

An executor may need to preserve these businesses immediately after death to maintain their value. This could involve ensuring websites remain operational, maintaining customer communications, collecting outstanding revenue, or arranging for the sale or transfer of the business.

Domain Names and Intellectual Property

Some digital assets have value because they generate income or support a business.

Examples include:

• internet domain names;

• copyrighted digital content;

• trademarks;

• software;

• photographs;

• videos;

• music libraries; and

• digital publications.

These assets should be identified and valued during the estate administration process just like any other business asset.

Practical Examples

Example One: Forgotten Cryptocurrency

Michael invested in cryptocurrency several years before his death but never told his family where his recovery phrase was stored.

Although the executor discovers references to cryptocurrency transactions, the digital wallet cannot be accessed.

Without the necessary recovery information, the estate is unable to recover those assets.

This situation highlights why documenting the existence of digital assets is just as important as documenting traditional investments.

Example Two: Family Photographs Stored Online

Helen stores thousands of family photographs and videos in cloud storage.

Her will authorizes her executor to administer her digital assets, and she leaves behind a secure inventory identifying the service provider and where her login credentials can be found.

The executor is able to preserve the photographs and provide copies to family members before closing the account.

Example Three: An Online Business

David operates a successful online retail business that generates income every day.

Following his death, the executor immediately works with the business's accountant, website provider, and lawyer to ensure customer orders continue to be processed while the business is valued and ultimately sold.

Prompt action helps preserve the value of the business for the beneficiaries.

Common Mistakes

Forgetting Digital Assets Entirely

Many people prepare detailed estate plans for their physical assets but never consider their online accounts.

As digital property continues to increase in value, overlooking these assets can significantly complicate estate administration.

Storing Passwords in the Will

Although your executor needs access to important accounts, passwords and recovery phrases should generally not be included in the will itself.

A will submitted for probate may become part of the public court record.

Instead, maintain a separate, secure record that can be updated as passwords change.

Failing to Keep a Digital Asset Inventory

Executors cannot administer assets they do not know exist.

Preparing a regularly updated inventory of your online accounts, digital property, and important devices can save considerable time and prevent valuable assets from being overlooked.

Ignoring Cryptocurrency Security

Unlike many financial institutions, cryptocurrency providers often cannot recover lost private keys or recovery phrases.

Proper security and secure succession planning are essential.

Forgetting Automatic Payments

Many online services continue charging monthly or annual subscription fees after death.

Executors should identify and cancel unnecessary subscriptions to prevent ongoing expenses from reducing the value of the estate.

Costs and Considerations

The cost of administering digital assets depends on the size and complexity of the digital estate.

Potential expenses may include:

• legal fees;

• accounting fees;

• cryptocurrency valuations;

• cybersecurity assistance;

• business valuations;

• website maintenance;

• domain renewal fees;

• data recovery services;

• cloud storage fees; and

• professional IT assistance.

For estates with significant digital holdings or online businesses, obtaining professional advice early in the administration can help preserve value and reduce unnecessary delays.

When Should You Speak With an Estate Lawyer?

Professional legal advice may be particularly valuable if:

• you own cryptocurrency or other digital investments;

• you operate an online business;

• you earn income through digital platforms;

• you have valuable intellectual property;

• you own multiple websites or domain names;

• your executor is uncertain how to access digital assets;

• online accounts contain significant financial information;

• digital assets are located outside Canada; or

• your estate plan has never addressed digital property.

An estate lawyer can help ensure your will and estate plan properly address modern digital assets while coordinating with accountants and other professionals where necessary.

How Bridgestone Law Can Help

Digital assets have become an increasingly important part of modern estate planning. From cryptocurrency and online businesses to family photographs stored in the cloud, these assets deserve the same careful planning as your home, investments, and personal property.

Bridgestone Law assists individuals and families throughout Calgary and Alberta with wills, estate planning, probate, and estate administration. We can help you identify digital assets, incorporate them into your estate plan, prepare legally effective wills, and guide executors through the administration of increasingly complex digital estates.