Japan’s childless elderly turn wealth into goodwill
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Experts say more people are considering bequest donations partly because of a growing number of both childless couples and unmarried individuals.
PHOTO: AFP
TOKYO - As Japan ages, a growing number of seniors are turning their attention to charitable giving after death.
Bequest donations, as they are known, mainly by elderly people to hospitals, non-profit organisations and other entities, are on the rise due largely to the increase in childless couples with no heirs.
And while large sums of money left by such couples have been nestling in the national treasury, awareness about bequest donations has seen a change in recent years, with more organisations acting as a bridge between donors and recipients through wills or trusts.
“I feel relieved because now I know how the money I’ve saved will be used,” said 71-year-old Yoko Inaba (not her real name), who lives in a condominium for seniors in Yokohama, Kanagawa prefecture.
Ms Inaba had a notarised will drawn up in December stating that her money will be donated to a medical facility for newborns after she dies.
When she was a teenager, her mother told her that because of birth complications, she had been at risk of dying or suffering brain paralysis, leaving her wanting to contribute to the medical treatment of such infants in the future.
The woman, who divorced when she was young, has no children and is estranged from her siblings.
Through a financial institution, Ms Inaba sought advice on her will from Readyfor, a Tokyo-based crowdfunding services provider that has been mediating bequest donations since 2021. Since she had a medical facility in mind that she wished to donate money to, concrete preparations to probate her will went off without a hitch.
Experts say more and more people like Ms Inaba are considering bequest donations partly because of a growing number of both childless couples and unmarried individuals.
According to the Supreme Court, the amount of money that goes into the national treasury in the absence of inheritors has been on the rise, totalling more than 100 billion yen (S$896 million) in fiscal year 2023 – an approximate threefold increase from a decade earlier.
But now, with awareness of bequest donations rising among those without heirs, more are taking steps to plan what to do with their assets.
Launched in response to a growing demand, Readyfor has some 250 organisations registered as potential donor recipients, including universities and medical institutions.
Donors can choose beneficiaries with the advice of the company’s expert staff, who have experience specialising in inheritance-related matters at major financial institutions.
“Lots of people look back and wish to support things that have to do with their birthplace and their life in general,” said Mr Yusuke Sotome, a 34-year-old staff member at Readyfor.
Donor gifts made to childcare, healthcare and educational institutions are most popular, he said. KYODO NEWS