What Happens to Your Digital Pay Accounts Upon Death?

Nik Fondren • August 24, 2023

Navigating the Afterlife of Digital Payments: Unraveling the Fate of Your Online Finances After Death

Once something is online, it never goes away. While most see the statement as a warning against posting harmful social media content, it also reminds us that our online presence will outlive us. 

In estate planning, Venmo, PayPal, and Apple Pay accounts should receive the same consideration given to bank and retirement accounts. Although it is possible to close an online financial account without an estate plan, the absence of such a plan will complicate things for family members left behind. A comprehensive digital estate plan should include guidance on these online accounts and their disposition.


Why Does Digital Estate Planning Matter?


Digital assets, including the funds in Zelle, Venmo, PayPal, and Apple Pay accounts, often hold significant value. If these accounts cannot be managed or accessed upon the holder’s passing, they may be lost. With digital estate planning services, account holders can leave a lasting financial legacy for their loved ones.


What Happens to a Decedent’s PayPal Account?


Founded at the end of the 1990s, PayPal wasn’t the first online payment company—but it was the first to be used widely. It’s one of today’s top payment apps, with approximately 75% of survey respondents being active account holders.

PayPal’s rules state that only an estate executor or authorized administrator can request the closure of a deceased person’s account after presenting the following documentation.

  • The primary account email address
  • The requestor’s contact information and a scanned copy of their government-issued ID
  • A scanned copy of the account owner’s death certificate
  • Legal documents identifying the executor of the deceased person’s estate

Once the information is provided by postal mail or email, PayPal will issue a check or provide access to the decedent’s bank account. When the balance is transferred, the account will be locked or closed.


Handling a Deceased Person’s Apple Pay Account


Apple Pay is somewhat new to the digital payment field, but it has been adopted widely since its 2013 inception. Apple Pay is more of a payment system than an app—it allows iPhone and Apple ID users to pay with Apple Cash, an Apple Card, credit, or debit. Apple gives executors three ways to access services and delete a decedent’s Apple ID and linked data. The most time-consuming way involves a court order verifying information such as:

  • The person’s Apple ID and name.
  • The name of the person requesting account access.
  • Proof that the deceased was the account user.
  • Proof that the requestor has legal authority to act on the decedent’s behalf.

An easier option is for an Apple ID holder to choose a legacy contact. Here, the account holder would give their access key to a trusted individual, who would provide that key and a copy of the person’s death certificate. Once they’ve gained access to the Apple account, the legacy contact can delete the information.

Apple provides a third option, which allows an executor with account access and legal documentation to delete a decedent’s account. Families must submit deletion requests on Apple’s Digital Legacy page.


Zelle Accounts


Every financial institution has unique policies outlining what happens to Zelle accounts when holders pass away. Generally, accounts are closed, and funds are disbursed according to state law or instructions in a will. Account holders and beneficiaries need to understand state law, review bank policies, and plan properly.


Closing a Decedent’s Venmo Account


Venmo was established in 2009 and purchased by PayPal in 2013. About 80 million account holders, most of whom are in the United States, make and receive payments via the Venmo app. Much like PayPal, the Venmo digital wallet can be connected to a person’s bank and credit card accounts.

Venmo’s help center offers guidance on closing a deceased person’s account, linking to an online form that requests the account holder’s Social Security number, address, name, and account number, along with basic information on the requestor.

To close a family member’s account, you’ll need to contact Venmo’s support team by phone or online. There are two options on the support page: one for account holders and one for outsiders. There, a requestor can upload the documents needed to close a decedent’s account.


Accounts With Positive Balances


If a Venmo, PayPal, or Apple Cash account’s balance is positive, funds are transferable to associated bank accounts and, with estate planning, to individual heirs. PayPal allows business account holders to transfer ownership. Venmo group accounts are also transferable, and Apple Card account holders can add co-owners.


Simplifying the Account Closure Process


While PayPal and Apple have largely automated the processes by which decedents’ accounts are closed, Venmo’s instructions are less clear. Digital estate plans that include logins make it easier to settle online accounts. Online password managers like LastPass and 1Password allow holders to share account info with trusted family members. Alternatively, such information can be saved on handwritten lists or in protected digital spreadsheets.

No matter how login information is shared, it must be updated regularly. Some accounts require additional information, such as a PIN or two-factor authentication, and this information must be listed to ensure full access. With proper planning and help from an estate planning attorney in Cullman, families can have safe, secure, and continuous access to online payment accounts. 


Handling Recurring Payments


Digital estate plans should outline whether payment accounts are linked to subscriptions and recurring bills so they can be canceled. During the estate settlement process, families must contact each payee to settle outstanding debts. 


Estate Planning and Digital Payment Accounts: They Go Hand in Hand


The best digital estate plans list all online accounts and devices, along with updated login information and account settlement instructions. If you want to keep others out of your accounts after your death, be sure your attorney has clear and concise guidelines.

Most states, Alabama included, have rules governing how agents, trustees, and executors can access online accounts when a person dies or becomes incapacitated. To control your digital legacy in ways that align with your beliefs and financial goals while following state law, contact our office and request a no-obligation consultation.



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