WILMINGTON, Del.--(BUSINESS WIRE)--According to a new survey from Bryn Mawr Trust, a WSFS Company (Nasdaq: WSFS), Americans have little awareness about the importance of digital estate planning, despite placing a high monetary value on their digital assets. The survey found that Americans estimate a value of $191,516 on average for digital assets, however, 76% reported having little or no knowledge of digital estate planning.
The data also uncovered opportunities for financial advisors to bring these assets to the attention of their clients, with only 44% of respondents with advisors stating their advisor had addressed digital assets and digital estate planning with them.
The survey of 1,500 U.S. adults – half of which were from a nationally representative sample and half classified as high-net-worth (HNW) individuals with a household income of $175,000 or higher – gauged the knowledge base and preparation Americans are taking to manage their digital assets.
The State of Digital Assets
The survey identifies digital assets as including personal records, videos, social media content, passwords, biometric data, and financial information. When asked to assign monetary values to these assets, financial data, biometric information, and business accounts ranked highest for both groups. Despite recognizing the importance of digital asset security—55% of HNW respondents express concern about their digital assets—45% of the same respondent pool have never heard of digital estate planning.
Unsurprisingly, respondents indicated that the number of digital devices and assets they possess continues to grow. However, while Americans are generally aware of the sheer volume of their digital presence, there is a lack of familiarity with the concept of “digital assets,” and even more so when considering how these assets fit into estate planning.
On average, respondents reported having up to 250 digital accounts, with 37% indicating they have 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.
“Overall, the survey’s findings underscore the significant role digital assets play in our lives,” said Jamie Hopkins, Chief Wealth Officer for WSFS and Bryn Mawr Trust. “Notably, 30% of respondents indicated they have more than 30,000 digital files. But perhaps one of the most concerning findings is that nearly a third (32%) of Americans are unsure of how many digital files they possess, highlighting widespread uncertainty surrounding digital assets in the U.S., especially in light of how much value Americans place on their digital assets with an average of $191,516 and HNW individuals almost 5x that number.”
Knowledge and Preparation Gaps
The survey reveals a significant gap in the understanding of digital asset estate planning among Americans. While many respondents can identify their digital devices and some can identify digital assets, their understanding of their value and preparedness for integrating these assets into estate planning varies widely. Only 29% of Americans feel "very/somewhat knowledgeable" about digital assets, while about a fifth (21%) report having only “a little knowledge.” Over a quarter (27%) have heard of “digital assets” but know little about it, and 15% have never heard of the term at all.
“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 with instant messaging and email. However, there is a general lack of familiarity with digital asset planning and the crucial role it plays in our personal and financial security,” said Hopkins. “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 Ahead
Digital estate planning remains unfamiliar to many Americans, despite its significance in securing digital assets. The survey findings show that 79% of Americans believe it is important to protect their digital assets, similar to the 78% who feel the same about financial assets.
“While it may not be top of mind for many, our digital assets are a significant part of our lives and the legacy we leave behind. Over time, many of us have accumulated thousands of digital files, some containing sensitive and valuable information. Understanding how to secure and transfer these important assets should be an integral part of estate planning,” said Steven Klammer, Senior Vice President, Senior Wealth & Trust Advisor, Bryn Mawr Trust.
Despite the importance of these issues, only 32% of national respondents shared that they currently have an estate plan. Among those with estate plans, 75% of Americans report that their planning is up to date, and 22% have updated their estate plans in the past year. The survey also revealed that 67% of respondents have a will in place.
However, when digging deeper into the contents of those plans, only 53% of Americans have wills that specify their wishes for digital assets. Notably, 39% of Americans have never heard of the term "digital estate planning," and only 15% consider themselves very or somewhat knowledgeable on the subject.
“The good news is that most Americans are planning for a future after they're gone, but 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,” Klammer continued. “To better prepare for digital estate planning, individuals should take actionable steps, such as listing their digital assets and discussing their valuation with a financial advisor. It is crucial to ensure that digital assets are incorporated into overall estate planning documents, including wills and trusts.”
Deep Dive: Read the full report on survey results.
Survey Methodology
The survey was conducted by market research and insights agency 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.
About Opinium, Inc.
Opinium is an award-winning strategic insight agency built on the belief that in a world of uncertainty and complexity, success depends on the ability to stay on pulse of what people think, feel and do. Creative and inquisitive, we are passionate about empowering our clients to make the decisions that matter. We work with organizations to define and overcome strategic challenges – helping them to get to grips with the world in which their brands operate. We use the right approach and methodology to deliver robust insights, strategic counsel and targeted recommendations that generate change and positive outcomes.
About WSFS Financial Corporation
WSFS Financial Corporation is a multibillion-dollar financial services company. Its primary subsidiary, WSFS Bank, is the oldest and largest locally headquartered bank and trust company in the Greater Philadelphia and Delaware region. As of September 30, 2024, WSFS Financial Corporation had $20.9 billion in assets on its balance sheet and $87.2 billion in assets under management and administration. WSFS operates from 114 offices, 88 of which are banking offices, located in Pennsylvania (57), Delaware (39), New Jersey (14), Florida (2), Nevada (1) and Virginia (1) and provides comprehensive financial services including commercial banking, consumer banking, treasury management and trust and wealth management. Other subsidiaries or divisions include Arrow Land Transfer, Bryn Mawr Capital Management, LLC, Bryn Mawr Trust®, The Bryn Mawr Trust Company of Delaware, Cash Connect®, NewLane Finance®, Powdermill® Financial Solutions, WSFS Institutional Services®, WSFS Mortgage®, and WSFS Wealth® Investments. Serving the Greater Delaware Valley since 1832, WSFS Bank is one of the ten oldest banks in the United States continuously operating under the same name. For more information, please visit www.wsfsbank.com.
