In today’s world, almost every person leaves behind two estates when they pass away:
A physical estate: real property, financial accounts, personal belongings/possessions.
A digital estate: files, accounts, and identities all living and stored online
For many Alberta families, the digital estate is the part of one’s estate that causes the most confusion, because it is often invisible, undocumented, and protected behind strict privacy laws or unrecoverable passwords. Personal Representatives and Trustees (formerly called Executors) are left struggling to determine what exists, what has financial or personal value, and what steps they must take to access, preserve or discontinue such accounts
This guide explains what happens to digital assets when someone dies in Alberta, how a Personal Representative and Trustee can gain lawful access, how families should organize in advance, and how AzPerLegal Services Inc., a paralegal and civil court agency firm providing paralegal services in Calgary, can provide essential support in documenting and managing this increasingly complex and ever evolving part of estate administration.
Understanding Digital Assets | More Than Social Media & Email
Most people dramatically underestimate the size of their digital footprint. Your digital estate includes anything stored online or on electronic devices holding financial, personal, or operational value. In many cases, these assets contain information a Personal Representative and Trustee must access to properly collect financial records, identify potential issues, or preserve sentimental family data.
Digital assets range from everyday accounts – such as email or cloud storage – to highly valuable property like cryptocurrency or revenue-generating online businesses.
Common types of digital assets include:
- Email accounts (Gmail, Yahoo, Outlook, Hotmail)
- Social media (Facebook, Instagram, LinkedIn, TikTok)
- Online banking and investment platforms
- PayPal, Stripe, Wealthsimple, or online trading platforms
- Cloud storage (Google Drive, Dropbox, OneDrive, iCloud)
- Cryptocurrency wallets, seed phrases, and non-fungible tokens (NFTs)
- NFT – a distinct, irreplaceable digital identifier that certifies ownership and authenticity of a specific item.
- Seed Phrase – this is also known as a recovery phrase or mnemonic phrase, and is a randomly generated sequence of 12 to 24 words securing access to a digital “wallet”, such as for Bitcoin, or to restore a “wallet” in the event of loss or changing of one’s device.
- Any online storefronts (Shopify, Etsy, eBay, Amazon, etc.)
- In-app or online auto-renewing memberships and subscription services (Netflix, Apple, Discovery+, Adobe, etc.)
- Domain names, hosting accounts, and website servers
- Loyalty rewards programs (Air Miles, Calgary Co-op, Save-on, etc.)
- Password vaults and authentication apps or software
- Digital photos and important personal documents stored online
These kinds of digital assets often hold 3 types of value:
1. Financial value
Cryptocurrency, online stores, investment accounts, revenue from digital content – anything with monetary value.
2. Personal value
Family photos, videos, journals, correspondence, creative work, etc.
3. Legal/administrative value
Important tax information, legal documentation, passport information, student loan information, bank statements, personal or company invoices, client files, contracts, business records, etc.
When digital assets are locked behind passwords or inaccessible due to privacy restrictions, estate administration becomes significantly more complicated for the Personal Representative and Trustee and family members of the deceased individual.
This is why digital assets estate planning for Alberta residents is absolutely essential in today’s digitally dependent world.
Why Digital Assets Complicate Estate Administration
Digital assets present challenges in ways physical belongings/possessions and real property do not.
1. Passwords and 2 Factor Authentication make access difficult
Most people do not share passwords with anyone – not even spouses. Two-factor authentication (text codes, authentication apps) make it often impossible for a Personal Representative and Trustee to navigate.
2. Many platforms will not release information after death
Companies like Apple, Google, Meta, and financial institutions have strict privacy policies meant to prevent unauthorized access, however, while helpful for active accounts, this can become a significant challenge for Personal Representatives and Trustees to navigate.
3. Digital assets can disappear permanently
Cryptocurrency can be lost if a private key is missing. Cloud accounts may be deleted after inactivity periods. Digital businesses may collapse if no one can log in. This is a challenge many are facing in today’s online world, and it must be addressed proactively.
4. Families often do not know what exists
Personal Representatives and Trustees may be unaware of hidden investment accounts, cryptocurrency holdings, online revenue streams, outstanding digital subscriptions, or business transactions made through platforms like PayPal or Stripe.
5. Ongoing charges may continue
The estate may be charged for subscriptions, domain renewals, online storage, advertising accounts, or e-commerce platform fees. If these accounts are allowed to remain open, the estate may be liable for payment until the accounts are accessed or closed.
What Alberta Law Says About Digital Assets
Alberta does not have a standalone “digital assets” legislation.
Instead, digital property is governed by the same legal framework governing estates:
- Wills and Succession Act (Alberta)
- Estate Administration Act (Alberta)
- Personal Information Protection and Electronic Documents Act (PIPEDA) – federal privacy law governing access to personal electronic records.
Although Alberta law does recognize digital assets as part of an estate, service providers such as Google, Apple, Meta, cryptocurrency exchanges, banks, and cloud storage companies ultimately maintain access to their respective accounts until a Personal Representative and Trustee can gain access.
Personal Representatives and Trustees have authority to manage property, digital or otherwise, belonging to the deceased; however, they must follow each platform’s terms of service, thereby creating the possibility of a significant delay in gaining access.
Important Legal Aspects:
1. Digital assets can be part of an estate
Personal Representatives and Trustees are given the authority to manage the digital property of the deceased, and typically, a Last Will and Testament will include a specific clause providing the Personal Representative and Trustee the specific authority to do so.
2. A Last Will and Testament does not provide login authority
Usernames or passwords are never included in a Last Will and Testament. Upon probate, the Last Will and Testament is filed with the Court in the Application for a Grant of Probate and becomes public record. These should be kept in a separate document to be provided to the Personal Representative and the Trustee, and used only by the Personal Representative and Trustee upon the death of the individual.
3. Access depends on the service provider’s policies
Some digital account providers allow for memorialization (i.e. Facebook). Some allow account deletion only. Some allow data release with proof of death and authority (like Google, in some cases), while cryptocurrency accounts cannot be recovered without keys – no exceptions.
4. Proper planning allows for practical access
Without instructions or password access, even legally authorized Personal Representatives and Trustees may be blocked from retrieving digital property.
How Personal Representatives and Trustees Gain Access to Digital Assets in Alberta
Personal Representatives and Trustees typically require three layers of documentation to manage digital assets effectively:
1. Proof of legal authority
Personal Representatives and Trustees can present the Last Will and Testament at the outset, a Grant of Probate, or a Grant of Administration (if the deceased did not make a Last Will and Testament). The Last Will and Testament provides proof of authority of the Personal Representative and Trustee, while a Grant of Probate or Grant of Administration are Court documents validating the appointment of the Personal Representative and Trustee and his/her authority to administer the estate, thereby allowing for access to digital assets.
2. A digital asset inventory
This identifies what accounts exist, which accounts contain money, which require immediate action to be taken, and where specific access information is stored. Without an updated inventory, Personal Representatives and Trustees are often left guessing, leaving the potential for many digital accounts to remain undiscovered.
3. Written instructions from the Deceased
Personal Representatives and Trustees require clear direction when handling digital assets, such as:
- “Download my photo archives and share with my children.”
- “Transfer my domain names to my business partner.”
- “Close all social media accounts after notifying contacts.”
- “Access my Google Drive for business records needed for tax filings.”
These instructions should never form part of a Last Will and Testament – again, they should be set out separately (i.e. by written memorandum, a secured password vault, an estate planning binder or in an encrypted file with access details) and provided to the Personal Representative and Trustee with the Last Will and Testament or upon the death of the individual.
What Families Should Prepare Now to Protect Their Digital Estate Later
Effective and intentional digital estate planning requires more than a simple password list. It requires documentation that provides your Personal Representative and Trustee with everything needed to allow for the effective and seamless handling of all your digital assets.
1. Create a comprehensive digital asset inventory
This includes any and all account names, the approximate value of each account, instructions for continued use or closure, and the location of access credentials (but not the credentials themselves).
2. Document management instructions
Personal Representatives and Trustees need to know which accounts contain monetary value, which should be closed permanently, which need to remain active for business purposes, and which contain family memories to be preserved and granted to the family.
With specific respect to those accounts with monetary value, these need to be included in any application for a Grant of Probate or Grant of Administration and will eventually be distributed pursuant to the instructions set out in the Last Will and Testament (in the case of a Grant of Probate) or pursuant to the Wills and Succession Act (in the case of a Grant of Administration).
3. Choose a secure access method
Some suggestions include a password manager with “emergency access”, a written document including all digital accounts and passwords, or an encrypted USB drive, kept in a sealed envelope in a safe place (which should also include the Last Will and Testament), with instructions provided to the Personal Representative and Trustee as to the location of such sealed envelope (i.e. safety deposit box, in home safe, freezer (yes, if nothing else, taped to the top of the lid of the freezer!)).
4. Update digital estate information regularly
Online accounts change frequently, with forgotten password recovery, subscription changes or updates, so the best practice is to review your digital inventory every 12 months. With this proper organization and system in place, it will help protect your estate from unnecessary stress, delays, and potential loss of assets.
High-Risk Digital Assets That Require Special Planning
Some digital assets carry significant financial and legal consequences if not handled correctly.
Cryptocurrency
Cryptocurrency assets are not recoverable without private keys, proper seed phrases, hardware wallets and platform logins. No exchange or authority can restore lost keys; they must be the specific keys. This makes cryptocurrency one of the highest risk digital estate categories, hence the requirement for specific, accurate and detailed information.
Online businesses
Personal Representatives and Trustees must quickly access storefront dashboards, orders and shipments, client correspondence and lists, payment platform accounts, website hosting and domain registrations, advertising accounts, and all tax records.
Delays can result in lost income, chargebacks, frozen funds, damaged client relationships, and potential business collapse.
Digital intellectual property
This includes online course revenue, any royalties earned, licensing and registration, and digital product sales – these may be valuable assets requiring a formal transfer.
How Paralegals Help With Digital Estate Planning and Administration
This is where paralegal services in Calgary provide essential support. Digital estates require practical, hands-on administrative work – something paralegals are especially well equipped to handle.
At AzPerLegal, we assist clients with:
1. Identifying digital assets that clients may be unaware they own
In this day and age, where account creation is instantaneous, subscriptions renew automatically, and our digital footprint expands without us noticing, this can be a significant hurdle during estate administration.
Forgotten or inaccessible digital assets can lead to lost monetary value, trigger unauthorized charges, and create emotional distress for families who cannot retrieve important photos, documents, or business records easily.
2. Creating a detailed and organized digital asset inventory
We can assist with cataloguing all of your accounts clearly so your Personal Representative and Trustee knows exactly what exists, where to begin with consolidation, cancellation, or integration and takeover of the accounts, or whether and when to assign them to an appropriate individual when the time comes.
3. Documenting instructions properly
We ensure instructions are communicated clearly and practically. These are all accessible to the Personal Representative and Trustee and are stored safely throughout this process.
4. Supporting Personal Representatives and Trustees after death
Loss of a loved one is never easy, so we assist in navigating the legal process of estate administration and, in particular, the ever-expanding world of digital assets by researching service provider policies, providing information regarding closing or transferring accounts, retrieving essential files, and protecting financial assets.
5. Reducing family conflict and stress
Clear documentation prevents misunderstandings and ensures your wishes are followed precisely. This kind of support blends legal understanding with practical execution – providing the structure families need during an emotional and challenging time.
Why Digital Estate Planning Protects Your Family
A thoughtful digital estate plan offers significant benefits:
- Prevents loss of valuable financial assets.
- Protects family photos, memories, and documents.
- Ensures online businesses continue to operate until transferred to a new owner or wound down, either in accordance with the deceased’s wishes as set out in the Last Will and Testament or if no Last Will and Testament exists, in conjunction with family wishes or practical discussion.
- Saves your Personal Representative and Trustee hours of frustration and uncertainty as they navigate through the process of estate administration.
- Reduces legal costs and delays.
- Prevents unauthorized access or privacy breaches.
- Ensures your online identity, data, and wishes are respected.
A well-organized digital estate plan is one of the most helpful gifts you can leave your loved ones when you pass, so they can mourn on their own time without the stress of navigating the digital world.
Future Planning for Your Digital Assets
Digital assets do not manage themselves, and without planning, they can quickly become one of the most stressful parts of a Personal Representative and Trustee’s job. If you wish to ensure your online accounts, cryptocurrency, digital files, business systems, and cloud data are handled correctly, AzPerLegal can help.
Contact us today to schedule a consultation.
We provide assistance in digital assets estate planning in Alberta by providing the tools to organize, document and secure your digital assets so your Personal Representative and Trustee has everything they need, and your family is fully protected and stable.
Blog posts from AzPerLegal Services Inc. are for general information only. The content should not be considered legal advice. If you are in need of professional legal advice, please reach out to our Paralegal Services team, for referrals to a lawyer.
