Online Businesses and Probate Issues

If you own an online business, planning for its future is necessary. In today’s digital economy, entrepreneurs increasingly build wealth and careers through online stores, content platforms, digital services, and internet-based businesses. However, these ventures are intangible, account-based, and often tied to multiple online platforms, which can make transferring ownership at death difficult or even impossible without thoughtful estate planning. Traditional estate plans often overlook digital assets entirely, leaving heirs without access to valuable business tools and income streams.

One of the biggest challenges for online business owners is accessibility. When an owner dies without documenting account information, executors may have no way to log into key systems. Passwords, domain registrations, payment-processing accounts, and e-commerce dashboards may be effectively lost. Unlike physical property, these digital assets are not always obvious or easily found by someone unfamiliar with the business’s structure. Without access, crucial operations can grind to a halt.

Part of the reason for this difficulty is that many online platforms’ terms of service prohibit account transfers outright. Website builders, social media channels, marketplace accounts, and payment processors often license access to users rather than granting true ownership. When the licensed user dies, those access rights can terminate, leaving successors with nothing but an inactive account. Clear instructions in legal documents, along with advance planning, can help mitigate these restrictions.

To protect an online business, start by creating a comprehensive inventory of digital assets. This should include:

• Domain names and registration details.
• URLs and administrative accounts for websites.
• E-commerce platforms (such as Shopify, Etsy, and Amazon) and associated payment systems.
• Content platforms and social media channels.
• Customer databases, email lists, and subscription services.
• Cloud storage locations and software licenses.

For each asset, record the platform name, username, direct link, and purpose. While passwords should not be included directly in a will (since wills become public during probate), using a secure password manager and providing access instructions for your executor or trustee is critical.

Another important step is to choose the right legal structures for your business. Operating through an LLC or corporation, rather than as a sole proprietor, allows ownership interests to be transferred more smoothly upon death. LLC membership interests, corporate shares, or trust interests can be allotted to heirs without forcing them to start a new business from scratch.

Including digital business assets explicitly in your will or trust documents ensures that your wishes for ownership and management are legally recognized.

Estate planning for online businesses also needs to address continuity. Without active management, search engine rankings drop, customer engagement declines, and revenue can stop altogether. Strategies like buy-sell agreements with partners, key-person insurance, and detailed standard operating procedures can help your successors maintain stability and growth. 

Seek Legal Help 

Your online business could possibly die with you without the right protections in place. Proper estate planning can allow for continuity.

Get the help you need from Fort Lauderdale probate litigation lawyer Edward J. Jennings, P.A. We understand the ins and outs of the estate planning process in Florida. Schedule a consultation today by calling 954-764-4330 or filling out the online form.

Source:

legacyassuranceplan.com/articles/why-plan/online-business-owners-estate-planning-your-legacy