Clients are overlooking their digital legacy despite people’s digital footprint rapidly increasing in the wake of the pandemic, says St James’s Place.
More than seven in 10 (71%) people with a will have failed to refer to their digital legacy in it, such as nominating someone to manage their accounts in the event of their death. Among those who did reference their digital life, nearly a fifth (18%) were prompted to do so by their financial planner/ accountant.
In addition, nearly half (48%) of those with a will have also not connected family members to their financial planner/accountant, meaning loved ones may struggle to track down details of their digital life.
St James’s Place found that financial planners have also assumed the responsibility of helping people understand their digital legacy and make preparations in the event of falling ill or dying. An overwhelming 80% of those who receive advice found it helpful to talk to someone about the process of handing over their digital legacy rather than dealing with the responsibility on their own, with 80% also noting that their planner has made the whole process of tackling their digital legacy less daunting.
Clients are also relying on financial planners to fill the knowledge gaps, with 84% admitting they have been prompted to consider aspects of their digital legacy they would have otherwise overlooked and more than two fifths (43%) outsourcing the task of managing their digital legacy to their planner as part of their wider financial planning.
Eddie Grant, director at St James’s Place, said: “Thinking about legacy planning can be daunting and tackling this alone can make an already difficult process even more isolating. As the world’s digital footprint grows, managing one’s digital legacy becomes an increasingly important part of this process but is often overlooked.
“Having an expert to walk clients through digital legacy plans can be a considerable help. Therefore, it’s important that clients connect their financial planner or accountant with their loved ones or trusted individuals so they can contact them in the event of death or incapacitation as this is one of the non-financial benefits of advice. Often, we see many people fail to pass over details of their planners, which unfortunately adds an additional layer of distress during an already difficult time.”
