The legacy market shows more signs of a slow recovery with latest figures showing a slight increase, marking the fifth consecutive quarter of growth.

Quarterly results released by Legacy Foresight show that the legacy market grew by 0.4 per cent year-on-year in the 12 months ending June 2013. This continues a trend of growth over the past five quarters following a slump in the legacy market due to the sluggish economy.

Legacy Foresight compiles figures from 61 consortium member charities in developing its analysis, and in the last year those charities raised £1.048bn. The vast majority of legacy income remains a result of residual legacies – those are legacies in which the deceased promises ‘the remainder’ of their estate to a charity – however pecuniary legacies saw the fastest rise over the year. The number of pecuniary, or specific cash gifts, rose by 2.8 per cent, while residual gifts managed an increase of just 0.7 per cent.

In total the number of people leaving any kind of gift to charities in their will rose by 1.5 per cent, a significant increase compared to recent times when the number of legators has remained steady.

But while the market appears to be strengthening, Legacy Foresight is eager to warn that charities are unlikely to enjoy the same levels of spectacular growth in legacy fundraising that they had during the boom years. Even with the current house price growth, the legacy experts suggest that rates of 8 per cent annual growth are a thing of the past.

Recent examples from charities show that legacy income has not been rising at the same rate across the board. While Oxfam attributed a decline in fundraising income last year in part to a fall in legacy income, RSPCA’s 11.6 per cent income boost was understood to be propelled by legacies.

Earlier this year research from the Cabinet Office’s behavioural insights team suggested that an additional £4bn in legacy income could be raised each year if solicitors prompted their clients to consider whether they wanted to make a gift in their wills at the time of writing the document. 

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