Federal Employees and Digital Estate Planning: Don’t Leave Your Online Accounts Behind
In today’s digital age, nearly every aspect of our lives is tied to technology. From TSP and federal benefits accounts to personal banking, investments, and even family photo libraries stored online, our digital footprint has become a central part of both our daily lives and the legacy we leave behind. Yet, despite the growing importance of these assets, many individuals overlook one critical aspect of planning for the future: digital estate planning.
Traditionally, estate planning focused on tangible documents (wills, account records, and important papers kept in safes or files) with clear instructions for heirs. But as more of our personal and financial lives have shifted online, the task of managing and transferring digital assets has become increasingly complex. These assets span everything from email and social media accounts to online banking, loyalty programs, and digital media libraries. While providing usernames and passwords may seem sufficient, legal and security barriers, along with platform privacy policies, often complicate access after a person’s passing.
Despite widespread concern about digital security, 55% of high-net-worth individuals express worry about their digital assets, nearly half admit they have never even heard of digital estate planning. This gap in awareness leaves families vulnerable to identity theft, privacy violations, and the permanent loss of valuable or sentimental digital property. Considering that the average person may hold up to 100 online accounts, the need to address digital assets in estate planning has never been more urgent.
For federal employees, integrating digital estate planning into your broader retirement and legacy strategy ensures that both your federal benefits and personal online accounts are secure, accessible, and protected for the next generation.
Challenges in Accessing Digital Assets
While the importance of digital estate planning is clear, accessing digital assets after a person’s death or incapacity is far from simple. Unlike traditional property, which is governed by long-established inheritance laws, digital assets are often locked behind technical, legal, and privacy barriers. For federal employees, this can include both personal accounts and federal benefit portals such as TSP, Social Security, or OPM retirement systems. Family members and fiduciaries commonly face four primary obstacles:
- Passwords and Authentication Barriers
Many digital accounts, including federal benefits accounts, are protected by strong passwords, two-factor authentication, and security questions. Without the correct credentials, even close family members may be unable to access essential information such as TSP balances, FEHB claims, or retirement benefit statements. - Data Encryption
Digital files are often encrypted, making them unreadable without the proper passcodes. This applies to individual devices, cloud storage, or even single files. Modern smartphones, for instance, use encryption technology so advanced that access without the owner’s passcode is virtually impossible, even for experts. - Criminal Laws
State and federal laws prohibit unauthorized access to another person’s digital accounts or devices. While these laws protect consumers from fraud and identity theft, they can unintentionally block spouses, children, or fiduciaries from accessing vital federal benefit accounts or personal financial information. Unless proper authorization is provided through estate planning documents, heirs may be legally barred from retrieving digital assets. - Data Privacy Regulations
Federal privacy laws restrict service providers from disclosing the contents of a deceased person’s electronic communications without lawful consent. As a result, providers such as email or social media platforms may deny access to heirs, even if the accounts contain important personal or financial information. Legal disputes to gain access can be lengthy, costly, and uncertain.
Current Digital Asset Law: Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA)
The Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), was introduced in 2015. The act allows users to specify access through provisions in estate planning documents or through service providers’ tools. As of July 2025, 47 states have adopted RUFADAA and similar asset laws, making it the prevailing legal standard for digital asset management in the United States.
RUFADAA establishes a hierarchy for determining fiduciary access to digital assets:
- Through the service provider’s online tool - For example, Google’s Inactive Account Manager or Facebook’s Legacy Contact allows users to designate who may access, manage, or delete accounts if they become inactive.
- Through the user’s consent during their lifetime - Explicit provisions in a will, trust, or power of attorney that authorize fiduciary access.
- Through a court order -When neither an online tool nor estate documents exist, fiduciaries may need judicial authorization.
The Current State of Digital Asset Law
Today, access to digital assets remains heavily influenced by service provider policies. TOSAs often override traditional property and estate laws by dictating whether accounts can be accessed, transferred, or even deleted. For instance, many social media platforms prohibit heirs from assuming ownership of a deceased user’s account, meaning personal photos, messages, and posts may be permanently lost.
For federal employees, this challenge extends beyond social media. Accounts tied to federal benefits, such as the TSP, OPM retirement services, or FEHB portals, also fall under strict security rules and privacy protections. Without proper planning, surviving spouses or family members may face significant delays or barriers when trying to access important benefit information.
Given these complexities, individuals must take a proactive approach by:
- Reviewing service providers’ policies and online tools.
- Explicitly granting fiduciary access through legally recognized estate documents.
- Recognizing that, unlike physical property, digital assets are subject to a mix of state laws, federal privacy protections, and private platform rules.
Without these steps, families may lose access not only to sentimental items but also to financially significant digital assets, including retirement accounts and federal benefits crucial to a survivor’s financial security.
Protecting Your Digital Legacy
If your estate plan was created more than a decade ago, chances are it does not include provisions for digital assets. While this language is now standard in most modern estate plans, older documents often default to the platform’s TOSA. Today, there is no reason not to include digital asset provisions in your will, power of attorney, and/or revocable trust. By failing to plan, you may unintentionally burden your fiduciary with lengthy legal processes, when simple planning could have avoided these obstacles.
By using and reviewing the seven steps below, you can ensure your digital assets are accounted for in your estate plan:
- Define the Scope - Identify all types of digital assets, from federal benefits accounts and retirement systems to personal financial platforms, emails, and photos.
- Create a Digital Inventory - List platforms (e.g., TSP, Social Security online, FEHB portals, personal investment accounts), note usernames, and record where passwords are securely stored. Include instructions for what should happen to each account after your passing.
- Appoint a Digital Executor - Select a tech-savvy individual to carry out your wishes, including closing accounts, transferring data, or memorializing social profiles.
- Update Legal Documents - Ensure wills, trusts, and powers of attorney explicitly authorize fiduciary access to digital assets, in compliance with RUFADAA.
- Use Platform Tools - Activate tools like Google’s Inactive Account Manager, Facebook’s Legacy Contact, and Apple’s Legacy Contact.
- Secure Storage - Store the inventory safely in an encrypted password manager, digital vault, or with your attorney. Ensure your executor knows how to access it.
- Regular Updates - Review your plan annually to reflect new accounts, updated passwords, or changes in laws and platform policies.
The Bottom Line
For federal employees, digital estate planning is more than just protecting personal accounts, it’s also about ensuring survivors can access benefits critical to their financial security. Without proper planning, your spouse or heirs could face locked TSP accounts, delays in OPM retirement benefits, or the loss of meaningful personal and financial records.
By updating your estate documents, creating a digital inventory, appointing a digital executor, and leveraging secure tools, you can safeguard both your federal benefits and your personal digital life ensuring a smooth transition for your loved ones.
Austin Costello is a certified financial planner with Capital Financial Planners. If you have questions about how retirement impacts your Medicare payments, register for a complimentary checkup. For topics covered in even greater depth, see our YouTube page.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.
This information is not intended to be a substitute for individualized legal advice. Please consult your legal advisor regarding your specific situation.
Capital Financial Planners and LPL Financial do not offer legal advice or services.
