But little left behind here will go to those who may be in need, with New Zealand classifying low internationally when it comes to leaving charity.
A report by Financial Advisors JBWere estimates that inheritances of about $ 27 billion in 2024 will grow, totaling $ 1.6 billion in transfers by 2050.
The leader John McLeod told Nine in mid -RNZ on Tuesday that it was a “very easy equation”.
“It’s the number of people who die, and we are quite good at telling it – about 37,000 a year in New Zealand – and the average wealth of those who probably die, which is about $ 750,000, so you get together and get $ 27 billion.
“This, 37,000 a year was currently just 27,000 20 years ago, and will go to 66,000 in another 50 years, so you can really see it in the number of missing people. Between now and 2050, will be $ 1.6 trillion. It’s a massive total.”
He said New Zealand was a relatively rich per capita country – about seventh in the world and, despite the growing inequality, was still the fourth for median wealth.
“If you compare this somewhere like the United States, which has many rich people, they go from number four on average to 14 in the median. Therefore, their richness is spread – while there is inequality, it spreads more evenly and this is good for the potential of legacy and average transmission in dollars.”
Only 1.3 % of wealth has gone from the deceased in New Zealand was to charity organizations, McLeod said: “a very low number worldwide,” with almost 99 % going to partners and eventually children and other families.
“So even if we see a duplication of this, it’s still saying that 97 % will be with children or family, so I don’t think it bites it dramatically, it’s just that the level of charity is relatively low in New Zealand and Australia.”
JBWere has a philanthropic services division that “helps” Fins “and philanthropic groups to fulfill its mission” through investment councils, education and governance.
McLeod said part of the problem was that the wills were usually changed very few times in a person’s life, charity is not always the front.
“I think when we think of leaving a will or writing a will, we probably do it three times in our lives at significant times. And so you are sitting with a lawyer for perhaps an hour, three times in your life – so unless the charity of your mind, you just want to get out of there. And how many children do you have? ‘ And you share things by that number.
“I Think If You Think of Things A Little More Broadly – and We’re Seeing This with a lot of the families we speak to, albeit slightly on the wealthier side – They’re Thinking About Trying to pass on more than those assets. So They’re Thinking About, How of We Pass On The Values, The Knowledge, The Community Connections, The Things That Given Us Importance in Life? 4, 5 percent – what it is, you know, three, four times what happens now – this is really adding the, adding to the goal your children will have in life following this.
“So, in fact, we think that when you think about the full family balance, including more than just dollars, you are really improving children’s lives, getting this connection earlier. And you are really not cutting the total dollars they are having for any significant amount.”
The value that goes to charity will probably triple to about $ 1 billion over the next 20 years as the more boomers have died, leaving behind more wealth, but McLeod said that could be
Currently, about $ 320 million has been left to charity institutions in New Zealand annually, McLeod said, which “is not bad,” but could be $ 1 billion if the average legacy rises some percentage points because more people will be dying and leaving behind larger amounts of money.
“But if we could increase this from 1.3 %to 2 %, 3 %, you are talking about a triple of this total value. This is highly significant for a charity sector that has total philanthropy around $ 4 billion per year.
