By 2045 Legacy and In-Memory Giving Will Rise
By the time 2045 arrives, it is looking like that the number of gifts left to charities in Will is going to rise from 120,000 to 200,000, with a value of £10 billion. There are a number of reasons for this, firstly there is likely to be an increase in death rates, more people choosing to write Wills to direct their estate and more people will decide to leave charitable gifts in their Will.
All of this information comes from a report that provides a positive insight into how legacy and in-memory giving will alter over the next two to three decades. In 2018 alone, UK charities were given £5 billion through in-memory giving and gifts in Wills. This equals around 10% of the total income that charities receive. This figure is expected to increase to £10 billion by 2045.
The research has found that this will be driven by a generation of baby-boomers who are in their 50s, 60’s and early 70s. It is thought that the generation of baby boomers are more charitable than those that went before them and that will lead to an increase in gifts being made over the next few years.
Those people who do not have children are likely to make up a large portion of the giving and this comes from statistics that suggest that the number of people dying without children is likely to increase. For example, one-fifth of those women born in the 1960s have no children, an increase from 12% of women born in the 1930s.
Despite this, the economic and social climate have uncertainties and that could lead to gift values rising at a slower rate than that we have seen in the past three decades.
As a result, it is likely that small charities will make greater gains as more people look to help local charities and charities that are close to their heart during their lifetime rather than more general charitable gifts.
When it comes to planning for the future, it is important that people think carefully about their legacies and how charities or loved ones can benefit. As more money is being given to beneficiaries and charities, it is likely that executors will have the task of navigating difficult financial circumstances as well as the legal paperwork and tax consequences that goes with it.
What this means is that it is more important than ever before to obtain professional advice as this will enable you to make the right decisions based on your circumstances.