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 percent having between one and 10 accounts, 29 percent having between 11-100 accounts, six percent having between 101 and 250 accounts, and eight percent 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 percent 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 Traditional storefronts have been replaced by online storefronts, our payments are mostly digital, our family photo albums are now online, and even how we communicate with others has become increasingly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 percent of Americans admit they’ve never heard of “digital estate planning” and only 15 percent consider themselves very or somewhat knowledgeable on the subject.

The survey also found that only 44 percent 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 percent of Americans believe it is important to protect their digital assets, similar to the 78 percent 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 percent 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 from Bryn Mawr Trust.

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Jamie Hopkins is the Chief Wealth Officer of Bryn Mawr Trust and CEO of Bryn Mawr Capital Management. He oversees the private wealth management group’s financial advice strategies and growth initiatives, along with leading the institutional and personal trust businesses. Hopkins joined the company in 2023.