Just 6 percent of wills include a charitable gift as part of the inheritances. File photo. Photo: 123RF
Only half of New Zealand adults have a will, with a small fraction of money being left behind for charity, according to a new report.
JBWere's 2025 Bequest Report reveals the intergenerational transfer of wealth will total $1.6 trillion over the next 25 years.
It said $27 billion was transferred last year.
But only about half of New Zealand adults - 55 percent - had a will, and only 6 percent of those wills included a charitable gift as part of the inheritances.
JB Were head of philanthropic services John Morrow said many New Zealanders give generously during their lifetime, but few considered leaving a legacy gift.
He said bequests accounted for just 1.3 percent of all charitable income in New Zealand, totalling an estimated $320 million annually, which compared with 1.8 percent in the United States and 4.5 percent in Britain.
"If we can just move the dial from that 1.3 percent that's currently given from inheritances - sort of suggested in the report 3 percent - that's a big shift from $320 million annually being given to charities through bequests, to potentially reaching 2.5 billion," he said.
He said the introduction of 'living bequests' - which could offer a small tax incentive that could be claimed while living - may be one way to increase the rate of legacy gifts.
But he said there was a need to normalise the practice of leaving behind a charitable donation in a wll.
"We have an important opportunity to encourage more discussions on giving-in-wills so it becomes normal, ensuring that future generations and local communities benefit from a culture of giving that goes beyond the present," Morrow said.
He said charitable organisations had a role to play in making it easy for people to leave something behind in their will through a giving programme.
"A program that connects not only with your donors, but also your volunteers. A lot of research suggests that some of your largest bequests are going to come from those that are your volunteers, who may not have significant income wealth, but they've got asset wealth."
Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
