As we head into the final months of 2021, we reflect on what we have learnt this year and look ahead to 2022. We all had high hopes for 2021 and although for many things have returned to some sort of normality it has continued to be quite turbulent. This has impacted on charities, its staff, and the UK legacy market more generally.

However, legacy gifts have provided a vital source of income for charities during these extraordinary times, below are my three key highlights for all charities whatever cause or size to take away and consider into 2022:

The legacy market is big and will continue to grow

In 2020 total UK legacy income was worth £3bn, while across the 5 years 2016 to 2020, UK charities received a total of £16bn from gifts in Wills. Over the next 5 years 2021 – 2025 UK legacy income will total £19.6bn, climbing to £23bn in the 5 years 2026 – 2030. By 2030 UK charities will receive £5bn p.a. in legacy income from 146,000 charitable bequests.

Can you really afford to ignore the potential of this for your charity?

Anticipate a spike in bequests next year

Gifts in Wills teams will know that over the past two years they have had to operate in unprecedented circumstances, firstly due to the problems at the probate courts causing significant delays in probate approvals. Secondly the impact of the pandemic and the many shockwaves this has sent. It has certainly been an interesting time to analyse the legacy market.

Lower probate approvals have meant fewer legacy notifications. We estimate that there was a 6% shortfall in bequest numbers in 2019, followed by a further 18% shortfall in 2020. These notifications will be processed eventually, and charities need to be prepared to manage the probable increase in bequests that will need to be processed. This will likely impact the largest to the smallest of charities, everyone needs to be aware and prepare.

Over the next ten years we expect to see bequest numbers growing to 146,000 in 2030 around 15% up on 2018 (the year before the administrative delays began). You need to consider now how you will manage this potential increase in administration. Do you have the capacity and skills to cope? Our sister company Legacy Link can help with this.

A more diverse sector – smaller charities act now

This increase in notifications and administrative challenges are not only going to affect the biggest legacy brands. We continue to see more specialised, often more local causes, gain market share in the legacy sector. The fastest growing sectors over the past 10 years have been air ambulances and wildlife trusts. With arts and education charities, NHS hospitals and mental health charities also gaining ground. If you are a smaller, more specialist or local charity do not ignore the significant potential of gifts in wills. With the average residual bequest worth £50,900 and the average pecuniary worth £3,400, legacy gifts could transform smaller charities income. Invest now to benefit from this potential significant income stream. Also, consider training and upskilling to manage the possible complexities of receiving a legacy gift.

If you would like to find out more about joining the Legacy Monitor Programme for 2021, please contact Richard Hill, r.hill@legacyforesight.co.uk, or download the brochure.

To access our Legacy Market Briefing 2021 in full, please click here.

Join the Legacy Foresight team to discuss this in greater detail at their upcoming webinar: The UK Legacy Market in 10 Key Stats: Unmissable Insights from this year’s Legacy Monitor on Nov 11 at 10:00 AM GMT. Register here.

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