Real-World Examples of Common Mistakes in Digital Asset Wills

Why real examples of common mistakes in digital asset wills matter in 2024–2025

Estate planners have been warning about digital assets for over a decade, but the problem has exploded in the last few years. Between 2020 and 2024:

• Global crypto ownership grew to an estimated 560 million users worldwide, according to industry surveys.
• Social media platforms turned into real businesses, with influencers and content creators earning full-time incomes from YouTube, TikTok, and Instagram.
• Cloud storage replaced filing cabinets, meaning key tax records, contracts, and intellectual property now live behind passwords.

Yet most wills are still written as if none of that exists.

That’s why examples of common mistakes in digital asset wills are so useful. They show exactly how things break: where law, technology, and human behavior collide. When you see how a single missing password can wipe out a six-figure crypto portfolio, you stop treating digital assets as an afterthought.

Below, you’ll see concrete, updated examples from the kinds of cases estate lawyers are actually dealing with today.

Example of a digital asset will mistake: naming assets but not giving access

One of the best examples of common mistakes in digital asset wills is what I’d call the “locked treasure chest” problem. The will lists the digital assets, but the executor has no practical way to open them.

Imagine this scenario:

A software engineer leaves a will that says, “I give my cryptocurrency holdings to my daughter.” The will is clear on who gets what, but it never mentions:

• Where the crypto is held (which exchanges or wallets)
• How to access the wallets
• Whether there’s a hardware wallet, seed phrase, or backup

The daughter knows her parent owned crypto but finds only a Ledger hardware wallet in a desk drawer and a vague mention of “BTC and ETH” in the will. No PIN. No seed phrase. No password manager access.

Legally, the daughter owns the crypto. Practically, she owns nothing.

This is one of the most painful examples of common mistakes in digital asset wills because it’s completely avoidable. The fix is usually a separate, regularly updated access document (kept in a safe or with an attorney) that:

• Identifies the platforms (e.g., Coinbase, Binance.US, Kraken)
• Explains where passwords/seed phrases are stored
• Gives the executor legal authority to access those accounts under state law

Many U.S. states have adopted some version of the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which sets rules for giving fiduciaries access to digital assets. You can read more about that framework at the Uniform Law Commission.

Examples include vague language that conflicts with platform terms of service

Another common example of digital asset will mistakes: the will says one thing, but the platform’s terms of service say something completely different.

Take a streaming content creator with:

• A monetized YouTube channel
• A Twitch account with subscribers
• A Patreon membership community

Their will says, “I leave all my online accounts and rights to my spouse.” Sounds straightforward, but here’s the catch: many platforms treat accounts as non-transferable licenses, not property you can simply give away.

So when the spouse contacts the platform, support responds with something like:

“We’re sorry for your loss. Under our terms of service, accounts are personal and non-transferable. We can close the account upon proof of death, but we cannot transfer it.”

Now you have:

• A will that promises continued income from digital channels
• Platform contracts that block transfer
• Confused heirs and an executor stuck in the middle

These real examples of common mistakes in digital asset wills highlight why generic phrases like “all my digital assets” are risky. A better approach:

• Identify which digital assets are true property (e.g., crypto, domain names, downloadable files, copyright in your videos) versus licenses/accounts governed by contract.
• Use the platform’s own legacy tools where available (for example, Google’s Inactive Account Manager or Apple’s Digital Legacy program) to designate who can access or manage accounts.
• Coordinate your will language with those tools so they don’t conflict.

The Federal Trade Commission has published consumer guidance on digital assets and privacy that’s worth reading: FTC Consumer Advice. It won’t draft your will, but it will sharpen your understanding of how platforms think about accounts.

Real examples of common mistakes in digital asset wills involving password managers

Password managers are fantastic during life and a nightmare after death—if no one plans for them.

Consider this example:

A cybersecurity consultant does everything “right” from a security standpoint. They use a password manager with:

• A randomly generated master password
• Biometric login on their phone
• No written backup of the master password

Their will says, “My executor shall have access to all of my online accounts and digital assets.” But it never mentions the password manager, the master password, or how to bypass biometric locks.

After death, the executor has:

• A phone that requires Face ID
• A laptop that logs in with a fingerprint
• A password manager that needs the master password, which nobody knows

Every bank login, email account, and crypto exchange password is locked inside that manager. This is one of the best examples of common mistakes in digital asset wills because it illustrates the collision between security and estate planning.

A more realistic plan might include:

• Storing the master password in a sealed envelope in a safe deposit box
• Giving the executor legal authority in the will to access the password manager
• Keeping a printed or offline record of recovery codes for multi-factor authentication

The National Institute of Standards and Technology (NIST) has guidance on digital identity and authentication that’s useful background reading: NIST Digital Identity Guidelines.

Example of ignoring crypto and NFTs in a digital asset will

Crypto and NFTs are where the stakes get high very quickly.

Take a real-world style scenario that estate lawyers now see regularly:

A tech-savvy investor holds six figures in:

• Bitcoin and Ethereum on multiple exchanges
• NFTs in a self-custody wallet
• DeFi positions earning yield

Their will, written in 2015, says nothing about digital assets. It just has the usual language: “I leave the residue of my estate to my spouse.”

Here’s what happens in practice:

• The surviving spouse and executor find no mention of crypto in the will.
• Bank and brokerage statements show nothing unusual.
• Unless the decedent left clear notes or the spouse already knew about the crypto, the assets may never be discovered.

This is one of the starkest examples of common mistakes in digital asset wills: the assets simply disappear from the estate inventory. No one reports them. No one pays taxes on gains. No one benefits from them.

Solutions that lawyers now recommend more often in 2024–2025:

• Explicitly defining “digital assets” in the will or trust, including cryptocurrency, NFTs, tokens, and future similar technologies.
• Keeping an up-to-date, encrypted inventory of wallets, exchanges, and approximate balances.
• Working with an estate planning attorney who understands crypto taxation and reporting obligations.

The IRS has been increasingly vocal about cryptocurrency reporting; see the IRS guidance on virtual currency at IRS.gov.

Examples of common mistakes in digital asset wills for online businesses

If you run any kind of online business—Shopify store, Etsy shop, SaaS product, newsletter subscription—your digital footprint is often more valuable than your physical office.

Here’s a real-world type example:

A solo entrepreneur runs a seven-figure e‑commerce brand. Almost everything is digital:

• Website and domain registered through a personal account
• Customer list and email marketing in a SaaS platform
• Payment processors like Stripe and PayPal
• Ad accounts on Meta and Google

Their will says, “My business shall go to my business partner.” That’s it.

After death, the partner discovers:

• They’re not listed on any of the platform accounts.
• Payment processors will not talk to them without legal authority.
• Domains auto-renew on a personal credit card that soon gets shut off.

Within months, the site goes down, ad campaigns stop, and the business value collapses.

These kinds of examples of common mistakes in digital asset wills make one thing clear: transferring an online business is not just about ownership; it’s about control of the digital infrastructure.

Better planning might include:

• Moving key business accounts to an entity (LLC or corporation) rather than a personal login.
• Documenting admin logins and recovery processes for the executor or successor.
• Using a buy-sell agreement or operating agreement that coordinates with the will or trust.

Overlooking “low-dollar, high-impact” digital assets

Not every mistake is about huge money. Some of the most painful examples include small-dollar digital assets with big emotional or practical value:

• A deceased parent’s photo library locked in a cloud account
• A family genealogy project stored in a private database
• Email accounts containing critical business records or legal correspondence

A typical example of this digital asset will mistake:

A parent dies with 20 years of family photos in a cloud account. The will says nothing about digital assets. The cloud provider requires a court order and strict identity verification for access. The executor doesn’t realize the photos exist or assumes they can’t be recovered, so no legal steps are taken. Years later, the account is deleted for inactivity.

This is quieter than losing crypto, but for many families, it hurts more. It’s another reminder that examples of common mistakes in digital asset wills are not just about money; they’re about memories, history, and identity.

Examples include failing to name a digital executor or give clear authority

Many wills still name a single executor without mentioning digital assets at all. That’s a problem when your estate includes:

• Multiple social media accounts
• Crypto and investment apps
• Cloud storage with business and tax records
• Online subscription services and auto-billing

Here’s a typical example of how that goes wrong:

The executor is a trusted sibling in their 70s, not tech-savvy, and easily overwhelmed. The decedent also has a younger cousin who understands crypto, but they’re not mentioned in the will.

The older executor:

• Doesn’t know what to do with crypto wallets
• Ignores social media, leaving accounts open and vulnerable to hacking
• Misses recurring digital subscriptions that keep billing the estate

Meanwhile, the tech-savvy cousin can’t legally step in because they have no authority.

Modern estate plans increasingly add either:

• A digital executor (where allowed by state law) with specific authority over digital assets, or
• Clear language empowering the primary executor to hire specialists or delegate digital tasks.

Without that, you get yet another entry in the growing list of examples of common mistakes in digital asset wills: the right person exists, but the will never gives them power.

FAQ: examples of common mistakes in digital asset wills

Q: What are some real examples of common mistakes in digital asset wills?
Some of the most frequent real examples include: listing digital assets in the will but not providing any way to access them; ignoring crypto and NFTs entirely; using vague language that conflicts with platform terms of service; failing to plan for password managers and multi-factor authentication; and naming an executor who has no idea how to manage online businesses or digital accounts.

Q: Can you give an example of a simple digital asset will mistake that causes big problems?
A very simple example of a digital asset will mistake is when someone writes, “I leave my Bitcoin to my son,” but never shares where the Bitcoin is held or how to unlock the wallet. The son legally owns the Bitcoin but has no seed phrase, no exchange login, and no recovery codes. The value may be permanently lost even though the will was clear about intent.

Q: Do I need a separate digital will, or can I just add digital assets to my existing will?
In many jurisdictions you can integrate digital asset planning into your existing will or trust, but you should also maintain a separate, secure document that lists accounts, devices, and access methods. The legal document gives authority; the access document gives practical instructions. An estate planning attorney familiar with digital assets can help you coordinate the two.

Q: How often should I update my digital asset instructions?
More often than your traditional will. Passwords, platforms, and crypto holdings change constantly. Many lawyers now suggest reviewing your digital asset inventory at least once a year, and any time you open a new major account, acquire significant crypto or NFTs, or start a new online business.

Q: Where can I learn more about legal access to digital assets after death?
For U.S. readers, look at your state’s adoption of the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which you can find summarized by the Uniform Law Commission. You can also review consumer privacy and digital account guidance from the Federal Trade Commission and technical guidance on authentication from NIST. Always pair that research with advice from a qualified estate planning attorney in your jurisdiction.

The bottom line: the best examples of common mistakes in digital asset wills all share the same DNA—people assume their executor will “figure it out.” In a world of encrypted devices, non-transferable accounts, and fast-changing platforms, that assumption is risky. Getting specific, naming responsible people, and documenting access can turn those horror stories into simple, manageable transitions instead of digital chaos.