Charities could benefit greatly from small bequest changes

JBWere’s John McLeod said that this is a “a fairly low number globally”, with almost 99 per cent of wealth in New Zealand going to partners and, eventually, children and other family. A report by JBWere estimates that inheritances of around $27 billion in 2024 will grow, totalling $1.6 trillion in transfers by 2050.

Currently about $320 million was left to charities in New Zealand annually, Mr McLeod said, which “isn’t bad”, but could be $1 billion if the average bequest rose a few percentage points. New Zealand ranks seventh in the world in terms of wealth per capita, and despite growing inequality, is fourth for median wealth.

One of the reasons that so little, comparatively, is left to charities in bequests is that wills are generally altered very few times in a person’s life, with charities not always front of mind, Mr McLeod said.

“I think when we think about leaving a will or writing a will, we probably do it three times in our life at significant times. And so you’re sitting with a solicitor for maybe an hour, three times in your life – so unless charity’s forefront of your mind, you just want to get out of there. And they ask, ‘How many kids have you got?’ and you divide things by that number,” he said.

But some of JBWere’s clients, albeit people who are quite wealthy, are taking a broader view, Mr McLeod said. They are thinking about trying to pass on more than just assets.

“So they’re thinking about, how do we pass on the values, the knowledge, the community connections, the things that have given us importance in life?”

“. . . [B]y having the families involved in their giving and their community connections earlier and adding something to a will, even if it’s only 3, 4, 5 per cent . . . that’s really adding . . . to the purpose that their children are going to have in life following that.”

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Rich baby boomers urged to leave something behind for charity | RNZ News (Radio New Zealand)