Michael Ow is 55 and working full-time as a sales manager. He recently made a very important decision while finalising a new will.
"I am gifting a small percentage, around 1 per cent of whatever I have left, when I pass," he said.
Ow works at the Australian Cancer Research Foundation (ACRF), and has chosen to leave a bequest to support cancer research.
"My wife and I discussed it with our children, and they are very happy for me to do this," he said.
But there's another reason for his decision to support medical research.
Michael Ow (right) with his cousin Pui Fun in Malaysia. Source: Supplied / Michael Ow
A 'heartbreaking' loss
As a teenager in a large Chinese family, Ow experienced the loss of a younger cousin to leukaemia while living in Malaysia.
"Pui Fun was like a little sister to me," Ow said while looking at photos. "It is still very hard thinking about her now."
He said Pui Fun passed around the age of 14.
"It was heartbreaking. One day, she just wasn't here any more," he recalled.
"Our parents hushed up about it because they didn't think young people should know about death; it was a taboo subject."
He said bequeathing would help him remember her as someone dear to him.
"And I hope that by leaving this gift, it will not just benefit my family. It will also help other families in terms of finding a cure through cancer research."
How many people leave money to charity?
But not everyone thinks the same way.
Fewer than half of all people in Australia have a will. Of those, only 6.5 per cent make provisions for charity.
JBWere, NAB's private wealth company, predicted that $150 billion would be inherited in 2024, and only 1 per cent of that would go to charities — including cancer research.
Australia ranks among the world's wealthiest nations, yet the report revealed that gifts in wills lag behind those of other developed countries.
In the United States, 4.4 per cent of inherited wealth ($69 billion) is donated through bequests, while in the United Kingdom, 3.7 per cent ($7.6 billion) is donated. New Zealand bequests are on par with Australia, at about 1 per cent of all inheritances.
Australia is also entering the greatest wealth transfer in its history.
The Productivity Commission estimates $3.5 trillion in assets will change hands by 2050, as baby boomers pass wealth to younger generations.
'Unforgettable difference for generations'
Kerry Strydom, CEO of ACRF, said: "There are more research projects that we would like to fund than we can afford."
ACRF has so far funded 90 research projects across Australia totalling $204 million. Among those is seed funding for the development of a now widely adopted cervical cancer vaccine.
Kerry Strydom, CEO of the Australian Cancer Research Foundation, says there are more research projects they wish to fund than their budget allows. Source: Supplied / Australian Cancer Research Foundation
Penny Harrison, deputy CEO of the ARC, said: "A will reflects who you are, and if causes like charities are meaningful to you, this is one way to gift assets for the future.
"A bequest can make an unforgettable difference for generations to come, both in Australia and around the world."
However, most charitable giving has declined in recent years, according to financial services company KPMG.
Terry Rawnsley, an economist at the financial services firm, said about 30 per cent of Australian taxpayers — about 4.3 million people — make a charitable donation deduction when filing their tax returns.
"Over the past 10 years, analysis of Australian Taxation Office data shows a decline of 275,000 households giving an annual donation," he said.
"As cost of living pressures bite, people are also making smaller donations with an average of $1,000 annually."
But those who can afford to give are digging deeper, according to KPMG.
As Australia's population ages, new trends are also emerging.
Rawnsley said older Australians are changing the way they hold their assets, "selling homes, getting out of the share market and putting wealth into cash".
"This big generational transfer of wealth can actually worsen income and wealth inequality in the community," Rawnsley said.
"Yet, charitable donations can provide enormous value, whether by helping to reduce homelessness or supporting a particular cohort that donors feel very strongly about and want to assist after they are gone."
KPMG economist Terry Rawnsley warns that generational wealth transfer could worsen income inequality as people aged 64 and over shift assets into cash. Source: Supplied / KPMG
'Cherish those around you'
For Ow, living well means talking about death and preparing for the inevitable.
"Some people think making a will is a taboo subject. They don't want to talk about death or leaving their assets," Ow said.
Michael Ow encourages others to leave a gift to charity in their will. Source: SBS / Spencer Austad
"My advice to everyone is to cherish those people around you when you have time with them.
"Dance as if there's no tomorrow. Live your life today and tell them how much you care," he said.
This article is general information. Please see a professional if you need financial or legal advice.
