- $150 billion will be gifted through inheritances this year, but only $1.3 billion of this will be given to charity.
- Health and Medical Research, animal protection, and welfare are some of the top causes receiving donations through bequests.
- The Royal Flying Doctors Service Victoria said gifts in wills are one of their greatest sources of funding.
An estimated $150 billion will be gifted through inheritances this year. At the current bequest rate of 1% in Australia, $1.3 billion of this will be given to charity, a new report from JBWere reveals.
This compares to 1% ($229m) in New Zealand, 3.7% ($7.6bn) in the United Kingdom, and 4.4% ($69bn) in the United States.
NAB Executive for Private Wealth, which includes JBWere Australia, Michael Saadie said choosing how to pass on a lifetime's accumulation of assets, memories and values was one of the single most important decisions people make.
"Australia is a fortunate country with a strong economy, wealth, and a relatively small population. However, our giving to charitable organisations through bequests lag behind many other wealthy nations," Mr Saadie said.
The report also reveals roughly 6.5% of wills in Australia include a gift to charity. This compares to 5% in New Zealand, 10% in the United States and 13.7% in the United Kingdom.
Top causes supported through bequests in Australia (by dollar value):
- Health and Medical Research
- Animal protection
- Welfare
- International Aid
This year's estimated $150 billion inheritance forms only part of the estimated $5.4 trillion wealth transfer that will change hands in the next 20 years across Australia.
"We have already entered the most significant period of wealth transition in modern Australian history," Mr Saadie said.
"If we grew the current charitable bequest rate by even 1%, it would transform both the for-purpose sector while still providing generously for our families."
Philanthropy Manager at The Royal Flying Doctors Service Victoria Naomi Lehrer said gifts in wills were one of its greatest sources of funding.
"The generosity of our loyal supporters makes it possible for us to provide medical care and attention to those who need it wherever they are," Ms Lehrer said.
"As we look to the future, the needs will continue to grow in both the services we provide and the way in which they are delivered. Gifts in wills allow us to continue our life-changing primary health care, emergency retrieval and patient transport services.
"Whether large or small, every gift to the Royal Flying Doctors Service Victoria is greatly valued because it will help us have a positive impact on someone's life and in doing so provide the greatest gift."
