Intergenerational Transfer of Wealth in Montana Rae Lynn Hays, project director.
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Transcript of Intergenerational Transfer of Wealth in Montana Rae Lynn Hays, project director.
Objectives
• Review of RCDI Program • What is the Intergenerational
Transfer of Wealth and how does it impact our rural communities
• Implementation Strategies
RCDI Program Objectives
• $150,000 – 3-year grant from USDA, matched by MSU Extension and Montana Community Foundation
• Train the Trainer Program for 20 Extension Agents
• Delivery methods: statewide events, webinars, regional meetings
• Training LCF with $1,000 incentive
RCDI Outcomes
• Increase endowments– Capture Transfer of Wealth opportunities– Secure assets to sustain local communities
• Develop leadership skills • Increase rural engagement
– Prioritize community needs• Strengthen Relationships
State of Giving
• 83% of American give to charity while they are alive
• Only 4-6% give to charity through a bequest (when they no longer need it)
Transfer of Wealth
$
Process
• One generation transfers assets to the next generation
• Typically ocurs at time of death
• Potenial of legacy giving is the greatest
• Larges under-deveoped financial resource available to communities
Population Trends• Largest ingenerational transfer of wealth is occuring right now• Babyboomers• Heirs in Montana
Assets in Montana• Historic wealth• Agricultural land• Real estate
TOW Trends• Varying across the nation/state• Capture or escape route
Transfer of Wealth
Intergenerational Transfer of Wealth
• Largest transfer occuring now• $12 billion over 10 years
– 5 percent = $619 million in endowments– 5 percent = $31 million in annual grants
• Goal – keep assets in Montana• 2011 TOW study
– Msucommunitydevelopment/rcdi.org– Mtcf.org
TOW Event Ideas
• Press Releases• Planned Gifts
– Annuities, charitable trusts, estate gifts (will, retained life estate)
• Gifts of grain or livestock
Montana Endowment Tax Credit• Donors pay less in state income
taxes• 40% of gift’s federal charitable
deduction, up to $10,000/yr/individual
• 20% of direct gift by a qualified business up to $10,000 per year