Michael OW is 55 years old and works full time as sales manager. Recently he made a very important decision at the end of a New Testament.
“I leave a small percentage, about 1 percent of what remained, when I spend,” he said.
OW works at the Australian Cancer Research Foundation (ACRF), and has chosen to leave a legacy to support cancer research.
“My wife and I argued with our children, and they are very happy that I do this,” he said.
But there is another reason for your decision to support medical research.
Michael Ow (right) with his cousin Pui Fun in Malaysia. Fountain: Supplied / Michael Ow
A ‘heartbreaking’ loss
When he was a teenager in a big Chinese family, OW experienced the loss of a younger cousin to leukemia while living in Malaysia.
“Pui Fun was like a little sister for me,” OW said while looking at the photos. “It’s still very difficult to think about her now.”
He said Pui Fun spent about 14 years.
“She was heartbreaking. One day, she wasn’t here anymore,” he recalled.
“Our parents silent about it because they did not believe that young people should know about death; it was a taboo subject.”
He said breathing would help him remember her as someone loved for him.
“And I hope that by leaving this gift, I not only benefit my family. It will also help other families in terms of finding a cure through cancer research.”
Michael OW lost his cousin to leukemia when he was 14 years old. Fountain: SBS / Spencer Austad
How many people leave money to charity?
But not everyone thinks in the same way.
Less than half of all people in Australia have a will. Of these, only 6.5 percent establishes provisions for charity.
Jbwere, the NAB private wealth company, predicted that $ 150 billion would be inherited in 2024, and only 1 percent of that would go to beneficial organizations, including cancer investigation.
Australia is among the richest nations in the world, but the report revealed that gifts in the wills are delayed behind those of other developed countries.
In the United States, 4.4 percent of hereditary wealth ($ 69 billion) is donated through legacies, while in the United Kingdom, 3.7 percent is donated ($ 7.6 billion). The New Zealand legacies are at the same time from Australia, with approximately 1 percent of all inheritances.
Australia is also entering the greatest transfer of wealth in its history.
The Productivity Commission estimates that $ 3.5 billion in assets will change hands by 2050, since the Baby Boomers transmit wealth to the younger generations.
‘Unforgettable difference for generations’
Kerry Strydom, CEO of ACRF, said: “There are more research projects that we would like to finance what we can pay.”
Until now, ACRF has financed 90 research projects in Australia for a total of $ 204 million. Among them is seed financing for the development of a cervical cancer vaccine now widely adopted.
Kerry Strydom, CEO of Australian Cancer Research Foundation, says there are more research projects that want to finance what their budget allows. Fountain: Supplied / Australian Cancer Research Foundation
Benefit organizations, including ACRF and the Australian Red Cross (ARC), can help people elaborate a simplified will that includes a gift for the beneficial organization.
Penny Harrison, an attached CEO of the ARC, said: “A testament reflects who you are, and if causes as beneficial organizations are significant for you, this is a way of giving assets for the future.
“A legacy can make an unforgettable difference for coming generations, both in Australia and around the world.”
However, most charitable donations have decreased in recent years, according to the KPMG Financial Services Company.
Terry Rawnsley, economist at the Financial Services firm, said about 30 percent of Australian taxpayers, around 4.3 million people, make a deduction of charitable donation by submitting their tax statements.
“In the last 10 years, the analysis of the data of the Australian Tax Office shows a decrease of 275,000 homes that give an annual donation,” he said.
“As the cost of living is bitten, people are also making smaller donations with an average of $ 1,000 annually.”
But those who can afford to be digging more deeply, according to KPMG.
As the population of Australia ages, new trends are also emerging.
Rawnsley said that older Australians are changing the way they have their assets, “selling houses, leaving the sharing market and putting cash wealth.”
“However, this great generational transfer of wealth can worsen the inequality of income and wealth in the community,” Rawnsley said.
“However, charitable donations can provide enormous value, either by helping to reduce the lack of housing or support a particular cohort that donors feel very strongly and want to help after they have gone.”
The KPMG economist, Terry Rawnsley, warns that the transfer of generational wealth could make income inequality worse as people 64 years old and about cash change assets. Fountain: Supplied / KPMG
‘Appreciate those around you’
For OW, living well means talking about death and preparing for the inevitable.
“Some people also think that doing a will is a taboo issue. They don’t want to talk about death or leave their assets,” OW said.
Michael Ow encourages others to leave a gift to charity in his will. Fountain: SBS / Spencer Austad
He said that leaving a legacy can also mean more than just money.
“My advice for everyone is to appreciate the people around you when you have time with them,” he said.
“Dance as if there were no tomorrow. Live your life today and tell them how much you care.”
This article is general information. See a professional if you need financial or legal advice.
