What is the Transfer of Wealth?

Empowering Communities, Transforming Kentucky

What the intergenerational Transfer of Wealth means to you

The United States entered a golden age of growth and prosperity following the Great Depression and World War II. Americans created, invested and multiplied unprecedented private wealth. Despite the traumas of 9-11 and an extended recession, the private wealth of individual Americans is impressive, and over the next 50 years, this capital – a conservative estimate of $53 trillion – will change hands. Most will go to heirs and taxes and to whatever other purposes the wealth-builders may wish, but a portion could be preserved in permanent endowments for the betterment of our community.

This research estimates the wealth transfer likely to happen here, in Kentucky. Retaining just a small portion of that wealth for philanthropic purposes close to home is a historic opportunity for our community – and for wealth-builders who care deeply about the places they call home.

The 5% Difference!
In the next ten years, if just five percent of this transfer in Central Kentucky could be captured in endowments with the Central Kentucky Community Foundation, nearly $63.95 million would be gained. Figuring a five percent grant payout, an estimated $3.2 million could be available annually to improve the quality of life in central Kentucky.

Kentucky Transfer of Wealth

Using conservative analysis, economists estimate the current net worth of Kentuckians to be $311.43 billion ($184,400 per household). Over the next ten years, $71.92 billion ($42,600 per household) is expected to pass from one generation to the next. Over the next 50 years, $707.08 billion ($418,600 per household) of wealth is expected to transfer to heirs. If appropriate education and advocacy initiatives are not undertaken, much of this wealth could leave our communities and our state altogether, going to out-of-state heirs who have no interest in our issues or the quality of life in central Kentucky.

Breckinridge County KY transfer of wealth
Grayson County KY transfer of wealth
Hardin County KY transfer of wealth
Hart County KY transfer of wealth
Larue County KY transfer of wealth
Marion County KY transfer of wealth
Meade County KY transfer of wealth
Nelson County KY transfer of wealth
Washington County KY transfer of wealth

“Our communities will experience a once-in-a- lifetime opportunity in the next several decades as significant wealth is transferred from one generation to the next. We want to reach out and ask everyone to be a part of securing our future.”

Don Macke, RUPRI Center for Rural Entrepreneurship

The Endow Kentucky Legislation

In the 2010 session of the legislature, SB 227 passed unanimously, creating the Endow Kentucky Commission and providing tax credit incentives for new contributions to endowments in Kentucky. It also provides a mechanism for future matching, incentive capacity funds for the creation of new endowments and between incentive and capacity. Ask your professional tax/estate planning advisor about how you can take advantage of the tax credits – and about other ways that smart planning can give you the advantage of putting more of your wealth to work in your community. Take charge of your own social investing through sound financial planning.

Download the full Transfer of Wealth from The Kentucky Philanthropy Initiative (pdf)

Central Kentucky Community Foundation is committed to partnering with individuals and businesses to create charitable funds to support the causes they care about — now and for many years to come. Offering philanthropic experience and expertise to our nine-county region, Central Kentucky Community Foundation continues to fulfill its mission of improving the quality of life for all residents.