In a world where technology drives our daily lives, it is no surprise that
we have increasingly placed more value on our digital identities and
belongings, also known as digital assets. Digital assets encompass
everything from personal records, videos and social media content to
passwords, biometric data, and financial information such as bank accounts
and credit records.
But does the average American know how to account for and manage these
growing assets?
A recent
Bryn Mawr Trust survey
found that the majority of Americans have up to 250 digital accounts, with
37% having between one and ten accounts, 29% having between 11-100 accounts,
6% having between 101 and 250 accounts, and 8% responding that they have
more than 250 accounts.
Within these accounts, the average American values their digital assets at
approximately $191,516. Despite all the value placed on
digital assets, the survey revealed that most respondents could benefit from
additional education on the topic.
Awareness vs. Action
As our lives become increasingly digitized, understanding and protecting the
full range of our digital assets is more crucial than ever, yet many remain
unaware of their true value and the steps needed to safeguard them
effectively for the future. The survey found a substantial 79% of Americans
acknowledge the importance of safeguarding digital assets alongside their
financial ones.
However, this awareness doesn’t always lead to action, and this gap between
recognition and preparation highlights the critical need for effective
digital estate planning strategies.
The Knowledge Gap in Digital Estate Planning
We live in a digital world where much of our lives are connected to online
and digital platforms. Traditional storefronts have been replaced by online
storefronts, our payments are mostly digital, our family photo albums are
now online, and even how we communicate with others has become increasingly
digital.
However, there is a general lack of familiarity with digital asset planning
and the crucial role it plays in our personal and financial security.
Despite recognizing the importance, 39% of Americans admit they’ve never
heard of ‘digital estate planning’ and only 15% consider themselves very or
somewhat knowledgeable on the subject.
The survey also found that only 44% of Americans report discussing digital
assets with their financial advisors, despite placing a significant monetary
value on them. Bridging the existing knowledge gaps requires increased
dialogue and education among advisors and their clients. Consumers should
start thinking about their digital presence more strategically and approach
their financial advisor and estate planner with the right questions to
prepare accordingly.
Planning for Your Future
Digital estate planning remains unfamiliar to many Americans, despite its
significance in securing digital assets. The survey found that 79% of
Americans believe it is important to protect their digital assets, similar
to the 78% who feel the same about financial assets.
Oftentimes, digital assets may not be top of mind, but they are a
significant part of our lives and the legacy we leave behind. Many consumers
have accumulated thousands of digital files, some containing sensitive and
valuable information, over the course of their lives. Understanding how to
secure and transfer these important assets should be an integral part of
estate planning.
Despite the importance of these issues, only 32% of respondents shared that
they currently have an estate plan.
Digital estate planning remains a topic many are unfamiliar with, and one
that some financial advisors may overlook. It’s crucial to work with experts
who consider all aspects of our lives, including our digital presence, when
planning our legacies. To better prepare for digital estate planning,
individuals should take actionable steps, such as:
• Create a list of digital assets and discuss their valuation with a financial
advisor.• Ensure strong password management for all digital accounts and proper access
for your beneficiaries.• Incorporate digital assets into estate planning documents, including wills
and trusts.
As technology continues to advance, being proactive in managing your digital
estate is crucial to protecting your personal and financial legacy. By doing
so, you not only safeguard your digital assets but also secure peace of mind
for the future.
Download the full survey report here.
About the Author – Jamie Hopkins, Esq., LLM, CFP®,
ChFC®, CLU®, RICP®
Jamie Hopkins oversees the private wealth management group’s financial advice strategies
and growth initiatives, along with leading the institutional and personal
trust businesses. He joined the company in 2023.
Survey Methodology
The survey was conducted by research company Opinium. The sample includes a
nationally representative survey of 750 respondents, and a survey of 750
high-net-worth individuals. All respondents were over the age of 18. The
online survey was conducted from September 25-October 2, 2024. It has a
margin of error of +/- 4 percent.
WSFS Bank, Member FDIC. Wilmington Savings Fund Society, FSB d/b/a WSFS
Bank. Bryn Mawr Trust is a division of WSFS Bank. Bryn Mawr Capital
Management, LLC. is an SEC registered investment adviser and a subsidiary of
WSFS Financial Corporation. Registration as an investment adviser does not
imply a certain level of skill or training.
INVESTMENTS: NOT A DEPOSIT. NOT FDIC – INSURED. NOT INSURED BY ANY
FEDERAL GOVERNMENT AGENCY. NOT GUARANTEED BY THE BANK. MAY GO DOWN IN
VALUE.
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