The Rise of Digital Businesses and Their Estate Planning Challenges

Digital businesses are booming. From content creators to e-commerce sellers to crypto investors, more people are building successful ventures online. Some work from home, others travel full time, but what they all share is a need to protect what they’ve built.

When we talk about estate planning, many people think of homes, bank accounts, and retirement plans. Digital assets often get overlooked. That can cause confusion or even financial loss for loved ones down the line. As estate planning attorneys here in California, we’re seeing more clients ask how to plan for their digital business, something we believe is just as important as traditional assets.

In this blog, we’ll look at what counts as a digital business asset, the challenges that come with planning for them, and how we can help.

What Counts as a Digital Business Asset?

If your business lives online, you likely have more digital assets than you realize. These assets may not be physical, but they still hold real value, sometimes more than brick-and-mortar property.

Digital business assets can include:

• Website domain names

• Online storefronts (like Etsy, Amazon, or Shopify accounts)

• Monetized content channels (YouTube, blogs, podcasts)

• Social media accounts used for business

• Cryptocurrency or NFTs tied to your business

• Payment platforms like PayPal or Stripe

• Subscriber lists, email marketing data, or customer databases

• Online courses or digital downloads

Each of these can be difficult to access or transfer without proper planning. And in some cases, they might disappear if no one can step in quickly.

Common Estate Planning Challenges for Digital Entrepreneurs

Planning for digital assets comes with a few extra layers. While traditional businesses usually have physical offices and bank accounts, digital ventures often run on cloud-based systems, third-party platforms, and secured logins.

Here are a few of the hurdles you might face:

• Access problems – Strong passwords, two-factor authentication, and encrypted files make your accounts secure, but also harder for others to manage if you’re gone.

• Unclear ownership – Many digital business owners operate as sole proprietors or informal partnerships, creating confusion about who owns what.

• Valuation issues – It's hard to put a price on a growing YouTube channel or a social media following. Yet these can generate ongoing income and need to be treated as assets.

• Transfer limitations – Some accounts, like personal Facebook or Gmail accounts, aren’t transferable under the platform’s terms.

• Content and licensing restrictions – Copyrighted work or licensed content may not automatically transfer through your will or trust.

• Tax implications – Depending on how your digital business is structured, there could be income, capital gains, or estate tax considerations.

Without a clear plan in place, your loved ones may face delays, platform lockouts, or even lose access to income-producing assets entirely.

Planning Strategies to Protect Your Digital Business

Fortunately, there are practical steps you can take to protect your digital business. It starts with organization and a customized estate plan that reflects how your business operates.

Here’s what we typically recommend:

• Create a full inventory of your digital business assets. Include account names, what they’re used for, and their approximate value.

• Secure login details using a password manager, encrypted file, or digital vault. Make sure someone you trust knows how to access it.

• Name a digital executor in your will or trust—someone who understands the online world and can carry out your wishes.

• Use a revocable living trust to hold digital business assets and provide a smoother transfer without probate delays.

• Write out instructions for how the business should be continued or closed, and whether accounts should be transferred or shut down.

• Review regularly. The online world changes quickly—what worked two years ago may not be enough today.

You don’t have to tackle all of this alone. We work with digital entrepreneurs to build plans that protect the value of their business and reduce stress for loved ones.

How We Help Digital Business Owners in California

At Heritage Legal, PC, we understand the shift toward online income and digital entrepreneurship. We’ve helped California clients plan for a wide range of digital assets, from crypto wallets to YouTube revenue streams.

Our estate planning process is personal and practical. We listen, learn how your business works, and craft a plan that protects what matters most to you. Whether you're a sole proprietor or you run a growing team online, we’ll help you think through access, succession, and tax planning so you can feel confident about the future.

We’re also here to review and update existing plans to make sure they cover the digital side of your estate.

Build a Plan That Keeps Pace with Your Business