Digital Assets & Estate Planning in 2025

Since their arrival on the financial scene over a decade ago, digital assets have moved from niche holdings to mainstream components of modern wealth portfolios. From cryptocurrency to app-based investment accounts, these assets are now a significant part of many clients’ financial lives. Their value, accessibility, and regulatory treatment are evolving quickly, creating both opportunities and challenges for investors and legal, trust, and estate advisors alike.

For estate, legal, and trust professionals, staying informed is no longer optional. The technical requirements for transferring digital assets, the patchwork of regulations governing them, and the risks of permanent loss if access credentials are mishandled all mean these assets require deliberate, informed planning.

Millennials and Gen Z are at the center of this shift. They hold the largest share of digital assets, and both generations are advancing further into their earning years. For Millennials, that means integrating growing digital portfolios into more complex financial and estate plans. For Gen Z, it often means safeguarding high-volatility, app-driven investments acquired early in their financial journeys.

Generational Shifts in Asset Trends

Millennials: Tech-Forward, Cautious, and Crypto-Heavy

Today, 62% of Millennials allocate at least one-third of their wealth to cryptocurrencies—a striking increase from just a few years ago. A recent U.S. executive order is expected to accelerate this trend by expanding access to alternative investments, including cryptocurrency, in retirement plans governed by ERISA. Released in August 2025, the order calls on regulators to modernize 401(k) and other defined contribution plan options, allowing plan fiduciaries to include digital assets alongside private equity and real estate when deemed prudent. While the order does not endorse crypto outright, it directs the Department of Labor and the SEC to issue clarifying guidance and potential safe harbors—steps that could make digital assets a more common fixture in retirement portfolios.

Gen Z: Digital-Native, Fast-Moving, and Socially Influenced

Gen Z’s engagement with crypto is even more pronounced. In the U.S., 42% currently own or have owned cryptocurrency, and 65% plan to increase the amount of crypto in their portfolios. In the U.S., crypto is the most common investment among Gen Z, surpassing individual stocks and mutual funds.

Unlike Millennials, who often approach crypto as an alternative to traditional investments, Gen Z are generally comfortable integrating it as a primary vehicle for wealth building. Many invest through apps and mobile platforms, and financial advice is frequently sourced from social media influencers rather than traditional advisors. Meme coins and trend-driven tokens are especially popular, often purchased as a perceived shortcut to significant gains, but carrying heightened volatility and risk.

The Expanding Scope of Digital Assets in Estate Planning

Digital assets are no longer limited to cryptocurrency. They now encompass a range of holdings and intellectual property that exist entirely online:

• Crypto holdings (Bitcoin, Ethereum, altcoins, stablecoins)
• Online investment accounts and app-based portfolios
• Digital wallets and payment app balances
• Social media accounts and monetized content
• AI-generated works and virtual identities

For attorneys and estate planners, the key challenge is ensuring the lawful and secure transfer of these assets. Unlike traditional holdings, many digital assets require more than simply naming a beneficiary in a will; they also necessitate additional steps to ensure their proper management. Without the appropriate private keys, passwords, or access credentials, these assets may be permanently inaccessible, regardless of any legal entitlement. In the event a decedent dies intestate, the process of dispersing assets to their lawful heirs becomes even more complex if they hold crypto assets.

The Unique Challenges of Blockchain Inheritances

Crypto assets operate on decentralized networks, eliminating the need for central authorities to recover lost credentials. If private keys or recovery phrases are misplaced or not disclosed in a legally sound way, the assets are effectively gone.

This poses several planning challenges:

• Lack of central oversight: No bank or transfer agent can release funds without proper access credentials.
• Jurisdictional complexity: State, provincial, and national laws governing digital asset transfers vary significantly.
• Security concerns: Storing access details in unsecured locations can expose assets to theft or hacking.

The result is that even well-intentioned estate plans can fail if they do not address the technical realities of transferring digital assets. For both Millennials and Gen Z, addressing this critical risk early is essential.

Practical Strategies for Clients with Digital Assets

Legal professionals should guide clients through specific steps to integrate digital holdings into their estate plans:

1. Comprehensive Asset Inventory: Create a clear record of all digital assets, including wallet addresses, exchange accounts, NFTs, and other online holdings.
2. Secure Access Management: Document and securely store private keys, passwords, and recovery phrases. This can involve offline (“cold”) storage, secure password managers, or attorney-managed escrow arrangements.
3. Regular Estate Plan Updates: Because digital assets are subject to rapid fluctuations in value and form, estate plans should be reviewed regularly, particularly after significant transactions, changes in marital status, or the birth of a child or grandchild.
4. Beneficiary Education: Ideally, heirs should understand what digital assets they will inherit, how to access them, and the potential tax implications associated with them. For younger beneficiaries, this may also involve education on security and responsible management.
5. State/Provincial Regulation Awareness: Stay up to date on applicable laws, such as the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) in the U.S., and any local variations in crypto inheritance rules.

What’s at Risk When We Overlook Digital Assets

For Millennials, digital asset planning is about protecting accumulated wealth, often built through years of strategic diversification. For Gen Z, it is about safeguarding assets acquired early and often concentrated in high-volatility investments.

Both groups risk losing significant value without proactive planning. An intestacy or incomplete estate plan that overlooks digital assets can lead to permanent loss, prolonged legal disputes, and financial hardship for beneficiaries.

With the average Millennial and Gen Z investor holding a sizable portion of wealth in assets that did not exist a decade ago, the role of legal professionals is expanding. Advising on digital asset inclusion is no longer a niche service; it has become a standard part of comprehensive estate planning.

Looking Ahead: The Next Phase of Digital Legacy Planning

Estate planning for digital assets will only become more complex. The next wave of considerations may include:

• Integration of AI-generated works into intellectual property estates.
• Tokenized real estate and securities that blend digital and traditional asset classes.
• Cross-border asset transfers in decentralized finance (DeFi) environments.
• Posthumous management of digital identities across virtual and metaverse platforms.

For legal and trust professionals, the takeaway is clear: staying informed about emerging asset types, custody solutions, and evolving legislation is essential to providing relevant, future-proof advice for your middle-aged and younger digital-native clients.

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