A digital power of attorney (digital POA) is a power-of-attorney document created, executed, or used to grant someone the authority to handle your digital accounts and online assets (email, social media, cloud storage, crypto wallets, online banking). It can be an electronic copy of a traditional POA or a document signed electronically to cover online matters.
Table of Contents
Why this matters now: most everyday financial and personal services live online — without explicit permission language, your chosen agent may struggle to access or manage those accounts.
(Practical note: a digital POA can be part of a broader durable POA for finances or a dedicated digital-assets addendum.)
Are electronic powers of attorney legally valid?
Short answer: often yes— but it depends on the jurisdiction and execution formalities.
- In the United States, federal law (the ESIGN Act) recognizes electronic records and signatures as having legal effect, so electronic execution generally can be valid for many documents. GovInfo
- State law also matters: the Uniform Electronic Transactions Act (UETA) (adopted in most states) sets rules for electronic signatures and records, which supports using e-signatures for legal documents in state law contexts. uaipit.com
However, some documents still require witnesses or notarization under state law. Notarization can be done remotely in many U.S. jurisdictions, but rules vary (see next section).
Notarization & remote online notarization (RON)
Remote online notarization — where a notary uses live audio-visual technology to notarize a signer in another location — has been authorized in many U.S. states, but the availability and required procedures vary by state. If your POA needs notarization (often recommended for recording real estate or banks’ acceptance), check whether remote notarization is allowed where you are and whether the receiving institution accepts RON. Ballard Spahr
What to include in a digital POA (brief checklist)
- Principal and agent names & contact details.
- Scope of authority (financial, real-property, digital accounts, health proxy if applicable). Be explicit about access to online accounts and passwords. Cohen and Wolf
- Durability clause (if you want it to remain effective after incapacity).
- Effective date and any conditions (immediate or springing on incapacity).
- Signature block (allow electronic signatures if preferred).
- Notarization/witness section, if required by law or desired for wider acceptance.
- Instructions for digital asset access (where to find passwords — consider a asecured password manager).
Step-by-step: how to create a legally-useful digital POA
- Decide the scope. Choose whether the POA will be general, limited, durable, or solely for digital assets.
- Pick a trustworthy agent. Choose someone with technical savvy and honesty.
- Draft the document. Use a state-specific POA template or an attorney. Online services provide guided templates you can customize. Legal Templates
- Include digital-access language. Add explicit authority to access, manage, and close online accounts and devices. Cohen and Wolf
- Sign with an approved e-signature method. Use reputable e-signature platforms that provide audit trails.
- Notarize if needed. If your state or the receiving institution requires notarization, use an in-person or approved remote online notary. Ballard Spahr
- Store securely & share instructions. Keep the document in a safe place (attorney, secure cloud, safe deposit box) and give the agent clear access instructions (preferably via a password manager or sealed instructions).
- Inform institutions. Notify banks, brokers, and major platforms about the agent and provide the POA when requested. Some institutions require their forms.
- Review periodically. Update after major life events, account changes, or jurisdiction moves.
Short sample: digital POA clause (example only)
Digital Account Access. Principal authorizes Agent to access, manage, control, close, or transfer any and all digital accounts, online profiles, email accounts, cloud storage, cryptocurrency wallets, and other electronic services maintained in Principal’s name. Agent may request, receive, and provide usernames, passwords, security tokens, multi-factor authentication codes, and any other information or credentials necessary to exercise such access.
(This is a sample clause. Local legal formalities and additional language may be required.)
FAQs
Q: Is a digital POA the same as a regular POA?
A: It can be — a digital POA is usually a POA that specifically covers online/digital access or is executed electronically. The legal effect depends on how it’s executed and the local law. GovInfouaipit.com
Q: Will banks accept an electronic POA?
A: Many financial institutions accept electronically executed POAs if they meet signature/notarization requirements, but policies differ — confirm with each institution.
Q: How should I share passwords safely?
A: Use a reputable password manager and share emergency access with the agent, or store a sealed instructions document with your attorney or executor.