In 50 years, $1.35 trillion is expected to pass from one generation to the next in Illinois. In just 10 years, $182.3 billion will have transferred.

This research estimates the portion of wealth transfer likely to happen in our state and community. Retaining a slice of that wealth for philanthropy as it transfers generations is a historic opportunity for strengthening Effingham County.

That’s why the Effingham County Community Foundation is working to secure planned gifts and bequests for the Community Fund, an endowment that will ensure a stronger future for Effingham County, forever.

A one-time opportunity to create permanent benefits Effingham County

Today, the current net worth of Effingham County is estimated at $2.95 billion.  During the coming decade, $0.49 billion is expected to transfer from one generation to the next. Over the next 50 years, the estimated transfer of wealth for Effingham County is $3.52 billion.

In the next ten years, if just five percent of this transfer could be invested at the Effingham County Community Foundation in an endowed Community Fund, nearly $24.6 million would be gained. Figuring a five percent grant payout, an estimated $1.23 million could be available annually to improve the quality of life in our community and secure our future.

RUPRI Center for Rural Entrepreneurship research estimates the percent of county and state wealth transferring from one generation to the next in the coming 50 years.

Wealth Drivers

Many factors have a significant impact on projections for the transfer of wealth in each community.

• Current net worth creates a starting point for future wealth creation.
• Demographics, such as employment, education, age and population changes, play central roles in current and future wealth.
• Community economic performance and individual business ownerships contribute to wealth generation.
• Customs and general spending behaviors impact future spending and saving habits.

On average, net worth increases with age. In the United States, net worth rises from a modest $74,000 for families 35 and younger (head of household age) to more than $800,000 as families reach their mid-50s into early 60s. Then net worth begins to decline as earning power drops and assets are used in retirement and for health care.

Ways to give

If you are retired, a planned gift from your estate may be more attractive to you and your family than a large gift today. You can leave a permanent legacy of giving, be a source of pride to your family and join others like you—building a stronger community.

Three easy ways to make a planned gift to your Community Legacy Fund include:

• Designate your local community foundation as the beneficiary of your IRA, 401(k) or other retirement account
  These assets can lose up to 70% of their value when passed to heirs; changing the beneficiary designation does not involve modifying your estate plan.
• Designate your local community foundation as the beneficiary of a life insurance policy
  There is no need to modify your estate plan.
• Ask your attorney to add the community foundation to your estate plan

Talk to us and your professional advisor to learn about all of your giving options and choose the one that’s right for you and your community.