There has been an upward trend in charitable gifts over the previous decade, according to Smee & Ford’s annual Legacy Trends Report. Legacy Foresight predicts the average annual income from charitable gifts in Wills in the UK will rise by 26% over the next five years. Which would increase to an average of 134,000 – 137,000 bequests per year.

The aging population and evolving Wills

The 2021 Census statistics revealed the greatest number of people in the UK are now in the 65+ age bracket than ever before. This age group now accounts for 18.6% of the UK population, compared with 16.4% a decade ago.

So why does this matter? Usually, a person would wish leave their estate to the next generation to ensure that their next-of-kin is provided for. However longer life expectancy also increases the age at which people inherit from their parents. As more people are living longer, the population is aging which means that families themselves have also aged or may be in later stages of life and don’t actually need to inherit from their parents. Therefore more elderly people are increasingly likely to choose to include a charitable gift within their Will instead.

Something to also note is that any charity legacies left in a will attract 100% relief from inheritance tax which would usually be applied at 40% from estates valued at £325,000 and over, perhaps another incentive to leave a charitable legacy.

Prevalence of gifts in Wills

A recent consumer benchmarking survey conducted by Remember A Charity, found that 19% of people saying they had included a charity in their Will, and a further 10% were preparing to do so. They found less than one in ten donors (9%) rejected the concept altogether.

In an interview with the Telegraph, Rob Cope, Director of ‘Remember A Charity’ said gifts in Wills made considerable differences to charities helping them to carry out their work and saving the tax burden on estates. He added that this was especially important at this time because of the rising house prices which has inflated estate values, and that more and more people were facing “hefty tax bills” due to the freeze on inheritance tax.

Mr. Cope went onto say:

“This continued growth in legacy giving is testament to charities’ increased focus on legacies and their willingness to collaborate, inspiring more people to leave a gift in their Will and raise vital funding for charities across the country. The more we talk about it and normalise the concept – particularly with the predicted surge of donations from baby boomers, the more charities will be able to benefit for generations to come.”

However, almost half (48%) of those who have included a charitable gift in their Will haven’t let the charities know. The most prevalent reason given by donors is that they can’t see how it would benefit the charity to know, while others say it’s because they might change their mind.

Often people don’t understand the impact they can make to charities by leaving a sizeable legacy donation. Trusted advisors play a key role in providing advice when people create or update their will, 26 per cent were more likely to leave a gift in their will after having consulted with a trusted advisor.