What you need to know from JBWere’s ‘The Bequest Report’

The ‘western world’ is on the cusp of what will be the largest inter-generational transfer of wealth in history, as the ‘baby boomer’ generation reach the end of their lifetimes.

In recent years there has been growing awareness of this looming challenge and opportunity across investment, charity and philanthropy circles in New Zealand, but little local data and analysis to really inform planning and consciousness raising here.

Now the Philanthropic Services division of JBWere, one of Momentum Waikato’s investment partners, have launched ‘The Bequest Report – Reshaping Aotearoa New Zealand by creating a legacy that goes beyond asset wealth’ to collate and present the relevant facts and insights.

What this report confirms is that while Aotearoa New Zealand is near the top when it comes to average household wealth, and that that wealth is more equitably spread out then most countries, there is nevertheless demonstrable social inequality here, particularly due to the wealth gap between young and old, which is widening due to current cost-of-living issues.

Meanwhile the percentage of New Zealanders who make bequests in their Wills to for-purpose and charity organisations is just 1.3%, far below that seen in the UK and US. The report says if that rate was to reach just 3%, it could result in almost $2.5 billion annually going to the community in 20 years’ time, an almost eight-fold increase from the current annual level of $320 million.

Quite apart from the figures involved, charitable bequests are the most valuable income source for for-purpose entities as such gifts provide by far the best return on investment of any form of fundraising.

Ultimately, JBWere’s purpose in laying out the facts and the forecasts via The Bequest Report is to promote the potential for “a deeper meaning of legacy that can be achieved with stronger connections to community”.

As the report acknowledges, community foundations like Momentum Waikato are ideally placed to provide people writing their Wills with the opportunity to create a perpetual legacy through our philanthropic investment fund model.

This is the message we are looking to spread through the ‘Professional Advisors Network’ we have started to set up, wherein we are asking investment and financial advisors, lawyers and accountants to have conversations with their clients about making a charitable bequest in their Will.

Whatever your age or level of personal prosperity, if you are considering creating or updating your Will, or are a professional advisor to those who are doing so, we recommend having a read of The Bequest Report by JBWere.

Then if you want to make a bequest that will create a local legacy get in touch with Momentum Waikato.