US Trust Ramps Up Efforts Around Online Reputation, Digital Asset Management For Wealthy Families

Eliane Chavagnon

27 February 2014

At a time when data protection and security are arguably the most pressing issues facing the wealth management industry, has expanded its Financial Empowerment Program as the firm hones in on the risks to family wealth in an “online world.”

US Trust, the private wealth management arm of Bank of America, has added to the program interactive learning and discussion guides to help clients and their children or heirs protect the value of their digital assets, online reputation, privacy and security.

“From social media profiles to online banking and digital photos, virtually everyone today has a digital footprint that can have a profound effect on their personal, professional and financial lives,” said Chris Heilmann, US Trust’s chief fiduciary executive.

“Digital assets have value beyond their monetary worth and need a plan to protect them. Increasingly, our clients are asking for tools and advice to prepare themselves and the next generation from emerging risks. Managing digital assets is now an essential part of the modern wealth management and planning process,” Heilmann said.

US Trust described the Financial Empowerment Program as a set of educational resources and learning tools on topics including the principals of savings, investing and estate planning, as well as sophisticated wealth structuring, credit and finance strategies. It was originally developed to help clients’ family members prepare for receipt and stewardship of family money, with a focus on the specific circumstances and complexities that increased wealth can bring.

Context

The move by US Trust to extend the program follows client feedback and research pointing to what the firm described as “deficiencies in digital asset estate planning and the need to address risk in a digital world.”

According to its 2013 Insights on Wealth and Worth report, for example, 63 per cent of high net worth individuals have not outlined “wishes and instructions” for their digital assets, while 45 per cent haven’t organized passwords for accessing digital accounts and files.

US Trust clients’ children and grandchildren can join the Financial Empowerment Program through their advisor, who will help them identify values, goals and gaps in financial knowledge. The customized program can be delivered online, in one-on-one sessions or in groups for the family.

Specifically, the extended Financial Empowerment Program now includes the following modules:

Protecting digital assets: An overview of digital assets including online personal, social, financial and business assets, and their monetary, sentimental and “good steward” value. This topic explores trust and estate issues related to digital assets and the privacy laws surrounding them, including ownership of and access to social media sites, photos, health records, loyalty programs, business intelligence and other confidential information.

Managing online reputation: This chapter looks at how and why online information can affect a range of life events - from business and legal dealings to personal relationships. Action steps covered here provide ways to monitor and manage an individual's online presence, protect and secure confidential information and address mistakes or inaccuracies.

Identity theft: How to recognize and avoid identity theft and fraud risks such as computer and device hacking and phishing, telemarketing schemes, charity scams and inheritance scams. This module includes actions steps for what to do if personal information is compromised or identity theft is suspected.

The program is part of US Trust’s Family Wealth Services, which is centered on clients’ investment, banking, wealth transfer and legacy planning needs.