$1 billion to pass to next generation

More than $1 billion will transfer from one generation to the next in Harvey County by 2020, according to research conducted by the Kansas Association of Community Foundations.

The transfer of wealth study was commissioned by the Kansas Health Foundation and conducted by the Center for Economic Development and Business Research at Wichita State University. Future intergenerational wealth transfer for each county in Kansas was estimated based on a model initially created by Boston College.

The results of the study were released Monday by the association, which the Greater Newton Foundation is a part of.

Research results released by the Kansas Association of Community Foundations, including the Greater Newton Community Foundation, projects by the year 2020, more than $1,061,206,134 will transfer from one generation to the next in Harvey County. When considering a 50-year time frame, this wealth transfer is estimated at $7,440,438,237, a news release stated.

Following the Great Depression and World War II, the United States entered a golden age of business growth and personal prosperity. Americans have created, invested and multiplied unprecedented wealth. During the next 50 years, this capital — a conservative estimate of $41 trillion nationwide — will change hands. Most will go to heirs and taxes, but Kansas community foundations are leading an effort to ensure a portion is preserved and invested in communities across the state.

“For generations, people lived their entire lives close to their birthplace, and, as wealth passed from one generation to the next, most stayed in the same county. This is no longer true,” said Marnette Hatchett, Greater Newton Community Foundation board of trustees chairwoman. “Once the wealth leaves our community, it may never return, so we hope to encourage residents to designate a portion of their estates, 401(k) and IRA accounts or life insurance policies to the community foundation.”

The Greater Newton Community Foundation holds endowments that will ensure Newton and the surrounding communities enjoy the long-term benefits of this transfer of wealth opportunity.

By definition, community foundations are tax-exempt, public charities created by and for the people of a local area.

Donors can create a charitable fund and commend grants that support the issues and groups they care about such as, art, education, the environment and health care, said Bill Hake, member of the board of trustees of the Greater Newton Community Foundation. Donors also have the option to rely on the foundation to make grants that reflect their particular interests.

Those interested in becoming donors can contact the Greater Newton Foundation for more information at 283-5474.