Lacklustre economy impacting legacy income growth, figures show
Melanie May | 14 August 2018 | News
Legacy income rose by 4.5% to reach £1.49 billion among Legacy Foresight’s 83 consortium members in the year to June 2018, according to the latest figures.
The increase is slightly slower than the increase reported in the last Legacy Bulletin, with legacy income growth among consortium members stalling in the last six months. It fell by 1.25% between the year to December 2017 and the year to June 2018. Legacy Foresight attributes the slowdown to a combination of lower bequest numbers at the end of last year and a more lacklustre economy over the first half of 2018.
The 12 months to June also saw average residual values once again drop, from £59,700 to £57,800, according to Legacy Foresight, while average cash gift values were worth just under £4,000 each.
Legacy Foresight states that residual bequest values were a key factor in driving overall income up during the second half of 2017, while the fall-off in those values seen in the first quarter of 2018 is a factor behind the recent weakness in overall income. Across the Legacy Monitor consortium, average residual bequest values have dropped back below the £60,000 level to stand at £57,800 over the latest year.
After six months of rising pecuniary bequest values the year to June also saw a fall, with the average pecuniary bequest in the year to June worth just under £4,000.
2018’s weather is likely to have an effect on bequest notifications in the months to come, according to the Bulletin. The latest ONS figures quoted by Legacy Foresight show that a higher level of bequest notifications was seen in the second quarter of this year due to increased deaths caused by the earlier cold snap. Looking ahead, Legacy Foresight is predicting that the hot summer is also likely to lead to a higher death rate than might otherwise be expected, which could have a knock-on effect on bequest notifications later in the year.
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About Melanie May
Melanie May is a journalist and copywriter specialising in writing both for and about the charity and marketing services sectors since 2001. She can be reached via thepurplepim.com.