Hello, everybody. My name is Andrew Wilkinson, on my part of Shakespeare Martineau. Power than Contentious legacies team. And this webinar is just, we thought it would be a good chance to just update you on some of the issues that we're seeing across the legacy sector cheering this pandemic. We thought it'd be helpful to just talk through some of the issues, some of the predictions as to what might happen in the longer term. But also, just to give you some tips as to what you might be able to do to keep those legacies coming into charity.
And so, I thought I'd start off first by talking about some of the steps in terms of the figures. And you can see that I've put on the slide that a picture of a roller coaster. And I certainly how it feels an amendment. And it's helpful just to talk about some of the statistics that have come out. And some of you may have read the news from legacy four sites, and they had previously been rejecting a 9% drop in legacies. This year, they've now revised, so that that will be between eight and 27%. So, obviously, a fairly significant decrease in legacies over the short term.
The more positive years, however, is that they're expecting this, that will, there is an integrated bounce back, and I think it's just worth thinking about why, what the reasons are for that delay.
I think some of them are perhaps obvious, and perhaps some of them less so, and I think the main issue that we're seeing at the moment, I think, is really to two issues. The first is a administrative issue, in the sense of administration, to say, it's just becoming more delayed, And that's a combination of regions. That's because everyone's working from home. So inevitably, things are slowing down, particularly where organizations are reliant on post, et cetera.
But also, fact, this list is firms are for allowing staff, so people aren't the SPP slash office to work, and then also just practical issues that people working from home, so they can't get into the office. They can't get original documents, original wills, which they need to swear, will we still need to be involved as part of the the administration process. So obviously, all of those things are taking its toll, and that's borne out in the numbers. And I've seen some numbers from the Ministry of Justice, which suggests that the normal, normal week, there's somewhere between 5 and 6000 grant applications that are made. And that's half.
So it's no surprise, then that that has a knock on effects, in terms of notifications. Ultimately, charities, but then, of course, in terms of how quickly mistakes are being administered. And we'll also see a lot of delays, as well, with the with getting death certificates. You know, we've had requests that have been out there for weeks if not months NSA's thinking about attempts to deal with. So all of those administrations Utilizable fasting into the delays in legacies and coming soon statesmen ministers.
And the other main issue is the housing market, of course, which is essentially until fairly recently been pretty much completely on how most states, sizable sites will have a property in them, and the residential property is normally the main asset of the estate. ... focuses on hold and that will have an impact is. And the good news, however, is that I think things are starting to pick up again, both sort of, anecdotally, and also more generally, I think, you know, things like surveys are able to access properties again, which is allowing things to start to pick up again. So, hopefully, that will pick up pretty quickly, and that will start, because he's back on the market and be actively marketed to sell them, and, ultimately, their self integration being, and being pushed through. And, there's also, of course, the tops and investments in a variety of investments that have jobs and city the mistakes that I've been involved, where we've seen the impact on the value of the residual states.
Whether there'll be a declared bounce back on, who knows. But, certainly, that's having a short-term impact, positive, and especially, to sell assets. In the relatively short term, then, obviously, that has to knock on effect, in terms of what is ultimately waste and when those investments are sold. And, so, the ..., however, is the long term there will be a bounce back, as I've said. This legacy Foresight said that in 20 19, and they said that the legacy market was worth three point two billion in the assignment that will increase by 2024 to three points between 3.73 point 8 billion. So this is very much a sector that is still growing.
I think what we're saying is certainly that most the average gift might be reducing that because actually there's just more charities healer guessing legacies into wells. So really, there's, there's, the pot is going up, but it's just been divided between more people. So I think when it just means if legacies isn't perhaps something ... thought about or it's been sort of an aside, then perhaps it's just worth thinking about whether or not we should investment should be made in legacy marketing And what you can be doing to sort of close out legacy stream. Inevitably it takes time. You know, you're not going to immediately get a return on the investment, but given this is a market that is clear. And I think certainly, if you can invest in, in growing yet, I think is certainly well worth and well worth doing.
And so the next slide, I just thought I'd talk about some of the practical things that can be done.
In terms of getting a state administered in getting them and administered quickly. And I've told them about Chase, Chase, Chase. And I think that's certainly something to be said for, he shouts the loudest gets dealt with first. I think that does this.
does certainly work. The one thing that I suggest is There's huge benefits. Just picking up the phone to people and equal to bear in mind that in our lives were baseless is now will be working from home. And it would be nice for them to hear from here from a friendly, friendly voice, and you can find out what's going on, and, you know, one of the things that you can also think about and talk about is the interim distributions, which I've mentioned on the slide there. So that's where status sat on, cash reserves. Essentially, that isn't, you know, where money can be passive beneficiaries. Now, I think particularly in the current climate, I don't think executives are gonna be criticized for taking a fairly cautious few prevention distributions. That said, there are plenty of other states where executives are sat on relatively sizable sum of cash and really, there is no reason for them not to be paid out.
I think it's looking at these things on a case by case basis. I think there's no sort of hard and fast rules.
But I think it's just worth looking at each. You start looking at what the liabilities are, They're gonna full Jew is their tax bills pay. All the works of properties that are going to need to be painful, you're trying to sort of do some cashflow forecasting and just working. Now, actually, what is the need for money in Canada is the money that can be distributes the beneficiaries.
Most ... solicitors, I think, should be relatively, you know, accommodates into those sorts of requests and it's really just in terms of mitigation. There obviously hasn't, but there is litigation that was existing, you know, create a pandemic. We're also seeing a rise in the ... during the pandemic itself, but I think we're certainly seeing that there are cases that have continued to be progress through this pandemic concerning. We're doing things like mediations, headings, so those cases are still moving through. And I just think there's, it's always worth thinking about settlement of those cases. And whether or not actually in the code, and then making the pressures that your particular charity might be facing, is it worth? Just thinking about how you deal with those claims?
Is a sentiment, You might have taken a particular patient settlement before, but does that need to be changed? Is that some benefit to getting a quick settlement, now, notice that in the hand. I'd really, So, I think it's just, we're thinking about, and just reviewing those cases, and just thinking, Well, we might Taking a hard line, before. Should we quickly cheaply movies, as And I think, That's LinkedIn to the last point, which is in terms of a change of approach.
Know, I think charities have understandably. a lot of choices have been very cautious about getting involved in litigation because of concerns about PR. Now, I'm not saying that those parent concerns don't exist absolutely today.
But I think there's a balance to be struck between know, between dealing with cases sensitively, and obviously being, you know, appreciate it in the family dynamics that might be at play into resulted in a sensible way. But also making sure that, you know, ultimately your charities is protected in terms of its income position. And I think also, there's a pale angle. And that's how it, as well, in terms of, I think that donors, if they're going to leave you money, they want they want to know that their wishes will be respected. And so I think that's got to be born in mind when you're thinking about cases and how you deal with those, that there isn't the PR just is a bit of a double edged sword.
So, property sales, I touched upon Cropsey sales, but obviously they have huge significance in the most vast majority of states And as I said this, we started to see the property markets that have come back to Life Recent and obviously that's good news. Some things to think about though, vacant properties. And obviously that there might be some difficulties in terms of people leaving etcetera, particularly if they're elderly, etcetera. And in properties that are being lifted. But of course, there's no reason why vacant properties can't be progress through. And there's really no reason for those to be delays in any real way. Virtue viewings, again, given that became our access than again, perhaps it's less of an issue, But I still think, inevitably, there's going to be reluctance for people to go see properties. And if you, if the agents can all able to offer virtual Viewings videos, and that kind of thing, that, I think that's helpful. And reduced price is this sort of obvious thing to say, but I do with it.
It's worth thinking about, you know, we know that we're almost certainly going to be heading into the session and the properties that prices are going to be affected. And so is it worth thinking about valuations, and is it worth thinking about whether or not the price that's being asked for a particular property is reasonable or not. And does a more pragmatic, Max pragmatic view, needs to be taken? It may well be. And that's not saying just, you know, prices and did our costs. I think you've gotta be sensible, and you look at each individual property and take advice. But I think it's just something worth thinking about.
Again, it's just It's that sort of change ever put, JJ, just view things afresh, and just check that the assumptions you made previously still apply.
And possession proceeds, I mentioned that. And it's not uncommon for states to be in a situation where they've got someone in a particular property than they need to get Bacon Possession. And, when I say that at the moment, because I think we've seen the generally on hold until the end of June. So, they were going to be very practical issues in terms of getting access and particularly if that's happened to be done in the context of mitigation. So, again, just think about what you might be able to do in the meantime, all the steps that can be taken to market and property. And, they will be the easiest way, position. There's nothing you can do, but, there's certainly some properties where some steps can be taken to, to progress to sell in some way, even though you might not be able to get vacant position the property. And the last point that I want to talk about was just about the importance of stewardship. And I think really in this climate it's about staying in touch with people.
And the thing about it is the Career Advice pandemic is that it's very much a shared experience. Everyone's suffering the challenges of it in different ways. And of course, you know, many of your donors will be elderly will be vulnerable and they may not have seen people for weeks and weeks and weeks and may have very limited, if any, content potentially with assembly. So I think it's always, it's always a good opportunity to stay in contact with those donors that you've been in concept before. That you know support your charity, and just just over coffee, you know, just to catch up and just to see how they're getting on and, you know, just to talk, talk. Talk with them. I think you can't underestimate how valuable asset is.
I know, it's, it's, it's time, and, you know, we're all busy, but I do think it's worth, you know, just taking that time to speak to people. And just to explain, you know, as well as well, some of the challenges that you're dealing with as an organization, and, and individually, I think, and there is some real value to that. And I also think that I've mentioned on the slide there forever loved type schemes. And so that's essentially what you say. Well, yeah, if you, when you, when you pass away, then we will look have to, You don't know your cat. I think those schemes are hugely valuable.
And they were quite good at building trust with donors and sort of offering something back to them. And I think it's important that those schemes continue. I think that's always not, that, that's sometimes not easy, particularly the amendment that, obviously, in a practical issues that you say, animal charities, maybe having intend to taking on animals, et cetera. But those sorts of schemes that are, that, sort of, go above and beyond the, sort of simple we want, you know, we want legacies for me. The offer something back. I think they have huge value, and I think they have a great way of building trust with your donors. So, certainly that well, we're thinking about, and they may not apply to your particular charity as, you know, to be talking here in the context of Animal Charities really, but there may well be examples then you are an organization that you can think about, those sorts of schemes.
And certainly, we've seen, you know, with the clients that we actual authors, where challenges have been able to offer those schemes. It does have an impact in terms of legacy income. They tend to get residual gifts, picketed NBC's pumps so it does make a difference. So I think it's certainly worth something that's worth thinking about.
And so, that's all for me. I've got one question that someone has sent through, which I just thought I'd mention. Someone's just asked about whether they, whether I think that there'll be allies in world speeds, as it was also the device, and let me, I think there will be. And we know from experience that a recession, C does have an impact on cases, it does increase the number of cases. Financial crashes generally will mean that people will fights and people will probably find a bit harder for legacies and, obviously, that impacts upon charities and social there'll be the ones who are the beneficiaries under the wheels. And so, I think there will be more claims.
Wise claims will be, I'm sure, we will see some claims about wells that have been prepared in AC Windows, and whether they've been violated, the executed in, that kind of thing. And, I think we'll also see financial provision claims, and trends into the 19 75 ads, where people will say that reasonable financial provision has been, hasn't been made for them. And, that's certainly something that's worth just thinking about.
I think in that context, The one piece of advice that I would give is just to encourage donors that are speaking speaking to, and I'm thinking about legacies, to make sure they record somewhere. That might be in this, this is fairly might be elsewhere, but just the reasons, not just why certain people are being excluded, but also why people are being included. So that if a gift is being left to Chelsea, just explaining that charity is why they've been selected. I think that's really valuable and it's certainly very helpful when it comes to dealing with one of those times when that comes through the door and async ..., the information can be accessible, but I think once you have that information, I think he said, you can make life much easier and certainly can help you defend these claims that might arise in the future.
And that's all I wanted to say. And if anyone's got any questions, then Burmeister Sector getting contests. But otherwise, I hope everyone stay safe and look forward to seeing you again. They say many. Thanks.