Half of UK millionaires include a gift in their will: research

A UK survey of 500 people with over £1 million in investable assets reveals that 50% of millionaires have included a charitable gift in their will, rising to 75% for those with estates of £5 million+.

The research, which was commissioned by Remember A Charity and conducted by independent research firm Savanta, also notes that legacy giving amongst high net worth individual (HNWIs) may extend beyond a donation in a will, finding that nearly a third of the group (32%) have established a charitable Will Trust, and three in ten (28%) have donated using a Donor Advised Fund (DAF).

Opportunity to engage

Among those millionaires who have not included a charitable legacy in their estate plans, the majority (58%) say they are open to doing so, and 26% say that they hadn’t thought about it before, highlighting an opportunity to engage this audience at the will-planning stage.

Around a quarter (26%) of the millionaires surveyed say they have prepared to leave a percentage of their estate to charity, rather than pledging a fixed sum, while 40% say they would be willing to donate a share of their estate. In the UK, around 90% of legacy income comes from residuary gifts with high value estates driving up legacy values, which Remember A Charity highlights as demonstrating the importance and potential impact of increasing percentage gifts in this market.

Gifts in wills more prevalent among HNWIs with children

In contrast to mass market trends, where child-free individuals are twice as likely as those with children to leave a charitable gift, this study found that, for HNWIs gifts in wills are more prevalent for those with children (50%) than for those without them (42%). Remember A Charity says this indicates that, at this level of wealth, individuals may well recognise they are able to both secure their family’s future and provide support for charitable causes. This may also reflect the fact that intestacy tends to be higher amongst those without dependents, with 1 in 5 saying they don’t have a Will and have no plans to write one.

Lack of up-to-date wills

The research also showed a lack of up-to-date wills amongst this demographic. Only 31% say they have an up-to-date will, and 35% of those aged 55-65 don’t have one at all. A quarter of the millionaires surveyed for this study say they are in the process of writing or updating their will.

Lucinda Frostick, Director of Remember A Charity, said:

“Charitable legacies are hugely valued across the sector, no matter the size of the gift or estate. But these insights into the high value legacy market reveal that legacy giving is even more prevalent in this space than many of us will have anticipated.

“While this is certainly encouraging for charities, many of which are becoming increasingly reliant on donations from those with wealth, this also helps to reinforce to professional advisers just how relevant philanthropy is to their client base – and how crucial it is that they can support their clients in achieving their charitable legacy.”

“However, the study also demonstrates that there are considerable differences in this market, where family is less likely to be seen as a barrier to leaving a charitable gift. By understanding these nuances, sharing inspirational stories from legacy pledgers and equipping professional advisers with the information they need to support their client base, we can work together to support and empower more people with wealth to fulfil their philanthropic goals.”

This week – 8-14 September – is Remember A Charity Week in the UK: the annual public-facing flagship event of Remember A Charity: a consortium of almost 200 charities working with a network of legal advisers, partners and Government to grow legacy giving all year round.

Picture by Andriyko Podilnyk on Unsplash