Clients Overlooking Digital Assets Need Advisor Guidance

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A new survey found that while 79% of Americans acknowledge the importance of safeguarding digital assets alongside their financial ones, 39% have never heard of "digital estate planning" and only 15% consider themselves knowledgeable on the subject. Despite the growing significance of digital assets in people's lives, only 44% have discussed them with their financial advisors. This gap between awareness and action highlights the critical need for advisors to guide clients toward effective digital estate planning strategies.

Why it matters

As technology continues to drive daily life, clients' digital identities and belongings, known as digital assets, have become increasingly valuable. These digital assets include personal records, social media content, financial information, and more. However, many clients remain unaware of the true value of their digital assets and the steps needed to protect them for the future.

The details

The survey, conducted by research company Opinium, found that while 79% of Americans believe it is important to protect their digital assets, similar to the 78% who feel the same about financial assets, only 32% currently have an estate plan. This disconnect suggests that digital estate planning remains an unfamiliar topic for many clients, despite the significance of securing their digital legacies. The survey also revealed that only 44% of Americans have discussed digital assets with their financial advisors.

• The online survey was conducted from September 25-October 2, 2024.

What’s next

As a trusted advisor, you can encourage clients to think about their digital presence more strategically and help them ask the right questions to prepare accordingly. You can guide your clients to take actionable steps, such as creating a list of digital assets, ensuring strong password management, and incorporating digital assets into estate planning documents.