Transfer of Wealth

Empowering Communities, Transforming Kentucky

What the Transfer of Wealth means to our community

In the next 10 years, nearly $4 billion in wealth and assets in our region will transfer to the next generation. Retaining just a small portion of that wealth for philanthropic purposes close to home is a historic opportunity for our community, for wealth-builders who care deeply about the place they call home, and to leave a legacy of hope for future generations.

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.

“The future belongs to those who give the next generation reason for hope.”

– Pierre Teilhard de Chardin

The 5% Difference!

In the next ten years, if just 5% of this transfer in Central Kentucky could be captured in endowments with 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.

What You Can Do

Consider a gift of 5% in your estate plans and your community will benefit forever.

Your Give5 estate gift can support a specific area of community life or organization that matters to you. If you Give5 and your neighbor Give5, through this collective community effort, CKCF could increase grantmaking by $20 million each year. Together, we could send every student to college or career training, increase access to health care services, vitalize and energize rural areas and downtowns, expand our parks and outdoor recreation, and provide quality early childhood experiences. Your investment will revitalize, energize, expand and give back to the community you call home. Just imagine the impact you could make with your forever gift. 

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, $72 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. Click on each county to view its transfer of wealth report.

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“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

The Endow Kentucky Commission passed unanimously in the 2010 state legislature, 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 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.