Eddie Grant: Have you advised your client about digital legacies?

Addressing a packed room at the Technical Connections conference in London yesterday (June 4), the director of Technical Connection at St James's Place highlighted the need for greater awareness of protecting and passing on digital legacies. 

Citing it as one of his "hyper focuses" at the moment, he reminded the room that 45 per cent of adults with a current account have multiple active accounts. 

These could be financial, gaming, store accounts, ancestry, digital music, pictures, social media and others, many of which have a monetary implication, and some of which are also able to be gifted, such as IP (podcasts, writings) or blockchain tokens and crypto. 

"But what happens when that person dies and you need a finger print or facial recognition? What happens when the families do not know what is on the person's digital record?"

He showed slides from the recent STEP digital assets survey, which showed that respondents were rarely asked about digital assets by clients. Some 42 per cent of respondents said they have 'never' been asked (see graph).

"But what about us?" Grant asked. "Do we proactively ask about digital assets as part of the advice process?"

He said more education around digital assets was needed as this was becoming an increasing problem for estate planners, and would become more so in the future. 

Grant said: "We all click through the terms and conditions and don't know the contractual rights for financial services accounts, or online storage, for example. 

"But what are we agreeing to? What are the restrictions on death?"

He urged advisers to talk to clients and their solicitors about digital IP and rights, as well as practical considerations, such as "who gets the photos? These don't have rights and can't be gifted but who gets them? These are questions for us and for clients."

He referenced the STEP survey again, where 45 per cent of questions that are asked around digital assets are on estate planning, while 35 per cent related to privacy. 

Grant also gave several tips to start the conversations around digital legacies:

• Involve the family and tell people what it is that you are doing
• Have a will put in place - and update it to include the client’s digital life. "It’s a public document, so don’t put passwords into it", he caveated.
• Create a lasting power of attorney
• Do you have a digital manager to ensure digital legacy wishes are fulfilled?
• Is there an inventory?
• Get your papers (and digital accounts) in order
• Have difficult conversations
• Expect the unexpected - and be prepared well in advance to reduce the administrative nightmare for families
• Seek advice 
• Spread the word - create a legacy contact so that loved ones can access your important information in the event of an emergency.

Vulnerability 

Also at the conference, Grant pressed home the importance of understanding the intersection between vulnerability and digital capability. 

He pointed to the recent Financial Conduct Authority vulnerability questionnaire to advisers, which sought to ascertain how well advisers have embedded an understanding of vulnerability into their practices. 

Grant highlighted seven questions out of the 40 on the survey that spoke to digital vulnerability, and expanded on them: 

• Do your staff really understand their impact in terms of vulnerable clients?
• Do your staff have the skills and capability to understand vulnerability? Have you tested it? 
• Do you have alternative communication formats? Do you know what is required? 
• Do you ask customers to nominate a third party when onboarding, a person that could make decisions and manage their financial affairs should the customer be suddenly unable to make decisions in their best interests? Where is this documented?
• What actions have been taken to embed the fair treatment of customers in vulnerable circumstances into the culture of the firm?
•  Have you reassessed service and product design?
• Are you helping clients to know what is available to help and support them? Do you have a list of other agencies and charities that could provide?

Citing personal experience of vulnerability, he said his dyslexia can have an effect on how he receives and processes written information. 

"I also have ADHD, so I can focus intensely, and digital legacy is one of my hyper focuses at the moment. We really need to understand digital inclusivity.