What Is a Digital Will and How Does It Work?

A digital will is a legally binding estate planning document created, signed, and stored electronically. According to estate planning experts, digital wills combine the legal authority of traditional wills with modern technology, allowing you to designate beneficiaries, name guardians, and manage both physical and digital assets—all from your computer or smartphone.

Research indicates that digital wills must meet your state’s legal requirements to be valid. As estate attorney Michael Fiffik from Fiffik Law Group told CNBC Select, “Services online are a good match for anybody who doesn’t have a will at all. It’s always better to have your own plan for your family.”

The Legal Validity of Electronic Wills in 2025

The legal landscape for electronic wills has evolved dramatically. According to Trust & Will’s analysis, as of July 2023, there are 14 U.S. states, plus the District of Columbia and the U.S. Virgin Islands, that allow testators to create electronic wills. New York became one of the latest states to pass Electronic Wills legislation in December 2025.

Data reveals that more than half of states have not yet addressed the use of electronically signed wills. However, experts predict this will change rapidly. States with electronic will legislation include:

• Arizona
• Colorado
• Florida
• Indiana
• Nevada
• North Dakota
• Utah
• Washington
• New York (enacted 2025)

Why Digital Estate Planning Matters More Than Ever

Financial anxiety is at an all-time high in 2025. According to the Trust & Will report, 49% of Americans are more concerned about their financial future than they were last year, and 78% say inflation has made achieving their life goals harder. This economic uncertainty makes estate planning even more critical.

Research from Vanilla’s 2025 State of Estate Planning Report shows that 90% of respondents are concerned about the impact of taxes on the assets they plan to pass on to heirs. Yet despite these high levels of concern, less than 42% have taken proactive steps to minimize taxes through planning with an advisor.

“Leaving property or mutual funds behind in a will is pretty cut and dried, but with more and more assets placed in cryptocurrency, a large share of inherited assets are in danger of forfeiture.”
— Azriel Baer, Partner at Farrell Fritz

Cryptocurrency and Digital Assets: The $1 Million Problem

Industry analysis reveals that roughly 1 in 7 people are leaving unclaimed property on the table, according to the National Association of Unclaimed Property Administrators. With surveys estimating that 14% to 17% of U.S. adults have owned cryptocurrency, losing access to these funds is a growing concern.

According to CNBC reporting, estate attorney Azriel Baer has worked on cases where tens of millions of dollars in cryptocurrency were lost to heirs because they didn’t know the decedent’s private keys—the digital passwords that grant access to cryptocurrency funds.

The Five Critical Mistakes Crypto Owners Make

Choosing the Best Online Will Service: 2025 Comparison

According to CNBC Select’s comprehensive analysis, the online will-making industry has matured significantly. Research shows that nearly 75% of respondents would be more likely to use an online estate planning platform, and 80% are comfortable with advisors using AI or digital tools to draft estate plans, provided there is professional oversight.

Industry data shows these services cost 70-85% less than traditional attorney fees, which typically range from $200-$400 per hour. For simple estates, online services provide an affordable and legally valid alternative.

The Role of a Digital Executor in Modern Estate Planning

According to research from estate planning authorities, a digital executor is someone named in a will to manage a person’s digital property after death. With 14-17% of Americans owning cryptocurrency and most adults maintaining dozens of online accounts, experts strongly recommend appointing a dedicated digital executor.

Digital Executor Responsibilities Include:

• Accessing and managing online banking and investment accounts
• Securing cryptocurrency wallets and transferring assets to beneficiaries
• Managing social media accounts (memorializing or deleting as specified)
• Accessing cloud storage and digital photo archives
• Closing email accounts and online subscriptions
• Protecting digital assets from unauthorized access and potential misuse
• Distributing or deleting digital files according to the decedent’s wishes

Data from the Trust & Will 2025 report shows that nearly 1 in 4 Millennials and Gen Z respondents prefer trusted friends or professionals over relatives as executors, reflecting evolving views on family, trust, and responsibility.

Security and Privacy Considerations for Online Wills

Research indicates that 80% of Americans are comfortable with digital tools for estate planning provided there is professional oversight. Industry leaders implement bank-level encryption and multiple security layers to protect sensitive information.

Security Best Practices According to Experts:

AI and Estate Planning: The 2025 Revolution

According to the Trust & Will 2025 Estate Planning Report, AI’s role in estate planning is gaining significant momentum. Data reveals that 20% of Americans already trust AI-generated legal advice more than human attorneys, and 34% trust it the same. Wealthier and younger Americans are leading the charge in adopting AI-driven tools for financial and legacy planning.

Industry expert Daniel P. Michaelsen, Vice President of Strategic Relationships for EncorEstate Plans and a licensed California Estate Planning Attorney, predicts: “AI’s accuracy at answering estate-planning questions will only improve. But gray areas require attorney involvement, and advisors need to understand that they may want what is best, but they must continue to build relationships with attorneys to navigate these gray areas.”

Step-by-Step: Creating Your Digital Will in 2025

Phase 1: Preparation

1. Take inventory of all assets – According to experts, create a comprehensive list including property deeds, vehicle titles, checking and savings accounts, investment accounts, cryptocurrency wallets, digital subscriptions, and sentimental items.
2. Document digital assets – Research shows most people forget to include digital assets. List all online accounts, social media profiles, cloud storage, email accounts, and cryptocurrency holdings with instructions for access.
3. Choose beneficiaries – Data indicates 65% of respondents rank trustworthiness as the most important factor when choosing someone to manage a trust. Consider each person’s ability to handle both financial and digital responsibilities.
4. Select your executor and digital executor – Industry analysis reveals that 45% believe a family member who understands the family’s values is best suited to manage a trust, while 25% prefer a professional fiduciary.

Phase 2: Creation

5. Choose an online service or attorney – Based on research, online services work well for straightforward estates, while complex situations involving blended families, significant crypto holdings, or business assets may require attorney involvement.
6. Complete the questionnaire – According to industry data, most online services guide you through a question-and-answer format that takes 20-45 minutes to complete.
7. Review and customize – Experts emphasize reading every section carefully. If you own cryptocurrency or significant digital assets, ensure specific language addresses digital property access.
8. Add specific digital instructions – Research indicates that clear documentation of passwords, private keys, and account access instructions is critical. Store this separately from your will in a secure location.

Phase 3: Execution

9. Sign with proper witnesses – Data shows most states require two adult witnesses who are not beneficiaries. Check your state’s requirements for electronic signatures versus physical signatures.
10. Notarization if required – According to legal experts, some states require notarization for wills to be self-proving, which can expedite probate.
11. Store and distribute copies – Industry best practices recommend keeping the original in a fireproof safe and providing copies to your executor, attorney (if applicable), and trusted family members.
12. Schedule annual reviews – Research from Patrick D. Owens emphasizes that waiting 10-20 years to update documents leaves you “behind.” Set calendar reminders for yearly reviews.

Estate Planning Trends and Predictions for 2026

According to Daniel P. Michaelsen’s analysis in Wealth Management magazine, ten major trends will reshape estate planning over the next two years:

Data indicates that major financial institutions and RIAs are building teams with the goal of having every client with an estate plan. According to Michaelsen, “If a firm has 50,000 clients across the country, how can it effectively get each client through the process if it has to work with hundreds of different law firms?”

Common Mistakes to Avoid When Creating a Digital Will

1. Forgetting to Include Digital Assets

According to CNBC reporting, many people neglect to account for cryptocurrency in their estate plans or fail to let heirs know how to access crypto holdings. Research indicates this oversight can result in holdings being tied up in court or lost forever.

2. Using Outdated Estate Planning Documents

Data from Patrick D. Owens shows it’s “very common for people not to update their estate planning documents for 10, 20 years or sometimes longer.” Documents lacking digital asset language may not provide legal authority for executors to access online accounts.

3. Choosing the Wrong Executor

Industry analysis reveals that “Uncle Bob may be a great person, but he may have more challenges transacting with an asset class he’s totally not familiar with,” according to attorney Azriel Baer. Consider appointing a tech-savvy digital executor specifically for online and crypto assets.

4. Failing to Track Cryptocurrency Cost Basis

According to estate attorney Azriel Baer, “It can be onerous to keep track of basis, but it’s important.” Without cost basis information, recipients can’t properly account for crypto sales, potentially resulting in tax complications.

5. Not Planning for Estate Taxes

Research from Vanilla’s 2025 report shows that 86% believe minimizing tax liability is important, yet less than 42% have taken proactive steps. Jonathan Forster notes that large crypto holdings “could be subject to significant taxes” including estate taxes above the $15 million federal exemption.

Conclusion: The Future of Estate Planning Is Digital

Estate planning in 2025 is undergoing a profound transformation. According to the Trust & Will 2025 Estate Planning Report, estate planning is no longer just about wills, wealth, and inheritance—it’s about legacy, financial security, and evolving societal values.

Research reveals that despite widespread recognition of estate planning’s importance, significant gaps in preparedness and access remain. Financial anxiety is rising, the traditional American Dream is being redefined, and people are looking for new ways to ensure their legacy—whether through AI, digital assets, or comprehensive online services.

Industry expert Daniel P. Michaelsen emphasizes: “What I care most about is families getting estate plans done and professionals working together to no longer accept the status quo of having a majority of the United States without any estate plan.”

The data is clear: online digital wills provide an accessible, affordable, and legally valid solution for millions of Americans. Whether you own cryptocurrency, manage significant digital assets, or simply want to protect your family’s future, creating a digital will in 2025 is easier and more important than ever.

“Estate planning is evolving, and the industry must evolve with it—meeting people where they are, adapting to their changing priorities, and ensuring that every American has the opportunity to leave behind something that matters.”
— Trust & Will 2025 Estate Planning Report

Take action today. With services starting at zero cost and comprehensive plans available for under $300, there’s no excuse to leave your family’s future to chance. As the experts consistently emphasize: having any estate plan is infinitely better than having none.