ESTATE AND INHERITANCE TAXES

by Patricia Jones, Alliance Community Task Force: Creating Opportunity

When a person dies, their assets could be subject to estate tax at the federal level and inheritance tax in Nebraska. Both of these were designed to limit the transfer of wealth to people who were not involved in earning it, and they are controversial.

Federal estate taxes were created in 1916, taxing estates valued at over $5 million. This amount changed to $50 million in 1932. In 1940 it dropped to $10 million, then $5, then $3. In 2002-2007 estates worth more than $2 million paid the tax. The exemption amount has increased annually since then.

In 2023, the federal estate tax applies only to estates worth more than $12.92 million. For a married couple, that is a combined exemption of $25.84 million. Only the amount over that threshold is taxed, and the rates are progressive. The first $1 million (over the $12.92 million) is taxed at lower rates – from 18% to 39%. Everything above that is taxed at 40%. This tax applies to about one tenth of one percent of Americans.

One of the reasons people argue that federal estate tax should be eliminated is the fact that there are ways to avoid paying anything at all. Every year, married couples can give away a certain amount in tax-free gifts to other people, including family members.  The annual gift tax limit is currently $16,000 per person. So, a husband and wife could each give away $16,000 every year for a combined $32,000 in annual tax-free gifts. Through annual gifts, married couples can reduce the value of their taxable estate while benefiting their intended beneficiaries.

Estate taxes can often be avoided by setting up a trust. Most trusts give the surviving spouse rights to the assets, with no estate tax on the assets put into this trust. For example, the surviving spouse can draw income from the trust, live in the house, etc. When the surviving spouse dies the trust assets are distributed to the intended beneficiaries.

A charitable trust names a charitable organization as the beneficiary of the trust assets. Assets in the charitable trust can include cash, stocks, real estate, and other property. There is a reason why the super-wealthy have foundations in their names.

A family limited partnership (FLP) is beneficial because it allows family members to pool their assets and then shift them to other members in the family, and it is common in agriculture. The assets you put into an FLP and transfer to others are taken out of your estate, with significant estate tax savings. FLPs offer a strategy for family farms to transition the farm on to the next generation. The older generation manages the operation at first, and the younger generation can, over time, take over the operation.

Nebraska is one of six states that collects an inheritance tax, and counties collect and use this tax. Inheritance tax is not calculated on the total of the estate; it is collected on the amount paid to each person who receives something from the estate.

The tax is levied on Nebraska property inherited from parents, siblings, extended family, and non-relatives. Spouses are exempt and inherit tax-free. Other beneficiaries inherit a certain amount tax-free, but then pay based on their relationship to the deceased. When property is inherited from immediate family members, the value worth more than $100,000 is taxed at 1%. Property inherited from near relatives is taxed at 11% for the part that is worth more than $40,000, and property inherited from distant relatives and non-relatives worth more than $25,000 is taxed at 15%.

The Revenue Committee of the Nebraska Legislature is considering advancing a constitutional amendment, LR23CA, to end inheritance tax. If approved, this would be on the ballot in the next general election for voters to decide.

If these two “death taxes” are ended, we must remember that the dollars collected from them must be made up with other taxes. This would be one more example of transferring tax obligations from the wealthy to those with no assets, again raising taxes on low-income households.

As you consider the benefits of leaving your legacy for the next generation, consider non-profit organizations, such as Snow-Redfern Foundation.  We build partnerships with communities and utilize data to determine how your gifts can best meet the needs of children.  For more information, please contact us or learn more at: https://www.snowredfern.org/give-today

Graduation is just around the corner, and with the preparations for closure of the high school days also comes planning for all the great things that will happen AFTER the big day!  A big part of planning efforts includes determining if college is on the horizon, and, if so, mechanisms for paying for it.

Fortunately, if seniors take the time to scour the web and partner with their parents, school counselors, or others that can guide them, they will find that there are actually many options available to assist with funding a college education.

Our scholarship programs are among those available this year!  Thanks to two very generous and caring donors, Snow-Redfern Foundation will be selecting and awarding eligible seniors with scholarship funds this spring.

Students interested in applying can do so by reaching out to their school guidance counselors for more information and for the link to complete the application.  All applications are due no later than March 31, 2023.  Below are the two scholarship programs offered in the spring:

K.M. Dahlstedt Scholarship

The family of KM Dahlstedt has established an annual memorial scholarship fund to provide support to high school students who are pursuing a degree in vocational training education. This one-year award can be used for education-related expenses if the candidate meets the established criteria. Up to five (5) scholarships will be awarded in the amount of $1,000.00 in the 2023-2024 school years.

Eligibility

To be eligible for the M Dahlstedt Memorial Scholarship, students must meet the following requirements at the time of application:

  • Currently enrolled high school student who will graduate in the current year
  • Citizen of the United States
  • Resident of Box Butte County in Nebraska
  • Accepted to an accredited technical college as a full-time degree seeking student

Edward M. and Eda S. Hempel Family Scholarship

Through the generosity of the Edward M. and Eda S. Hempel and family, this scholarship fund integrates the vision and beliefs once taught to young people at the Nebraska Boys Ranch. Though NBR is no longer in existence, the Snow-Redfern Foundation manages Arvilla Snow-Redfern’s estate through grants and scholarships to youth. Mr. and Ms. Hempel were integral in sustaining the Boys Ranch over the years and were generous contributors. Mr. Hempel was a long-time board member and he and his family gave generously of themselves through service and contributions so that the lives of kids might be better.

Eligibility

To be eligible for the Hempel scholarship, students must meet the following requirements at the time of application:

  • Citizen/ permanent resident of Nebraska
  • Motivated to successfully complete a college degree
  • Planning to attend a Nebraska college within the next year
  • Enrolled at a high school within Box Butte or Morrill County
  • Nominated by a school designee (such as school counselor)
  • Preference is given to applicants that have a FAFSA EFC between $7,000 and $12,00

December 2023, Alliance, NE –The Snow-Redfern Foundation nominated three new board members

 The Snow-Redfern Foundation (SRF), which provides funding support to youth-serving system of care partners across Nebraska, has announced its 2024 board of Directors.  The SRF Board of Directors provides leadership and strategic direction to guide the foundation’s mission to empower youth, inspire change makers, and energize partnerships for impact.

Nominated to the SRF Board of Directors to serve their first term include Jordan Diedrich with Twin Cities Development in Scottsbluff/Gering, Stephanie Vadnais with Nebraska Children and Families Foundation in Lincoln, and Brett Omar with Seasons of Hope Counseling in Alliance.

“Our board members play a vital role in elevating the voices of the communities in which they live, work, and raise families, while supporting the vision to ensure Nebraska youth thrive within inclusive communities and participatory systems of care.  By adding innovative board members from across the state, we have created an environment of shared learning and growth that contributes to the diversity of our work for and with youth”, said SRF Executive Director, Sara Wilcox.  “I would also like to extend gratitude to our departing board members, Brooke Shelmadine with Box Butte General Hospital and Shelmadine Print Shop in Alliance, Nathan Jaggers, a practicing attorney in Alliance, and Jenny Lanik with Alliance Public School in Alliance”.

The SRF Executive Committee nominated for 2024 includes:

  • President: Mara Andersen, Fox Creek Fundraising
  • Vice President/Past President: Denis Harris, Parker Hannifin
  • Secretary: Sean Ridgeway, First National Bank of Omaha
  • Treasurer: Dustin Chester, Nebraska Bank

Returning board members include:  Leslie Shaver, University of Nebraska, Lincoln; Tom Elliot, Elliott & Son, Inc., Alliance; Teresa Sanders, Diamond T Livestock Services, Alliance; Andrew Hunzeker, EducationQuest, Scottsbluff; Rob Eirich, UNL Extension, Scottsbluff; Karla Bennetts, Families CARE, Kearney; Rosey Higgs, Nonprofit Association of the Midlands, Omaha; and Megan Walter, Omaha Public Power, Omaha.

CARE in Central Nebraska

On any given day in Central Nebraska, you can find one of the dedicated employees of Families CARE supporting and advocating for parents, youth, and children.  With funding support from Snow-Redfern Foundation and other vital sources, this non-profit family organization provides services to parents who have children with emotional, behavioral, or mental health challenges.

Parent Voice

Among the many services and supports they provide, teaching parents that they (as parents) are the most important voice in their children’s lives is the most important. Advocacy and support are provided by peers; parents who have lived experience to share with other parents, and includes helping them identify their strengths, needs, and goals, developing strategies to meet their goals, sharing resources and service referrals, supporting them at school meetings, team meetings, or court, providing support groups for parents and youth/children, offering special events, and providing the partially Snow-Redfern Foundation funded Wellness Café.

Wellness Café Support groups are offered to youth in two age groups:  Middle School (5th-8th grade) and Young Adult (9th grade – college).  Meetings consist of time to connect and eat together, activity and hands on learning, sharing and success stories for growth.

Opportunity for Connection

Executive Director, Karla Bennetts, said “this model provides youth an opportunity to build connection and add informal supports through their peers”.

All activities provide youth with a new skill or tool they can utilize in their journey to live a life of wellness.  The discussions provide youth an opportunity to learn, connect and share.  Youth learn from one another and gain support as they share their stories of challenges and successes.

Youth Voice

“Youth voice is prioritized with youth establishing comfort rules for their groups and what they wanted to learn about, discuss and do at future meetings”, said Karla.

To learn more about Families CARE and the work they do to support parents, youth, and children, check them out at: What We Do – FamiliesCare.org Parent AssistanceFamiliesCare.org Parent Assistance

                  

The Snow-Redfern Foundation recognizes the impactful work of 38 Nebraska non-profits through 2022 project grant funding.

Snow-Redfern Foundation’s focus is partnering with nonprofit organizations to provide them the funding, support, and other resources to do more of the things they do best for kids. Project grants are one of the ways in which that support is extended each year, with emphasis on funding projects that foster the greatest impact related to well-being, education, and basic needs of children and youth.

The Potential of All Youth

Arvilla, the founder of the foundation, believed in the potential of all youth, and that passion has been carried forward for over 70 years. Her vision was to equip young people with the skills they need to be successful members of the communities where they live, grow, and work, which was first conducted through the Nebraska Boys Ranch, and now through the foundation’s grantmaking, scholarships, and leadership programming.

“We believe that every child has potential, but not every child has the opportunity to realize it. When their opportunity is enlarged, their potential grows with it”, said Executive Director, Sara Nicholson. “Our grantmaking programs are a vehicle for realizing that potential by honoring our founder’s vision and promoting positive impact for the kids that need it most”.

$2.3 Million in Project Grant Awards

In the last 10 years, $2.3 million in project grant funding from the foundation has created opportunities and reduced barriers for nearly 162,000 children and 600 organizations across the state.  “Each year, the needs seem to multiply, and we have been blessed with the ability to help where we can, as much as we can through many meaningful interactions and partnerships”, said Board President, Brooke Shelmadine.

In addition to the project grant awards, the Snow-Redfern Foundation was the sole funder of the Youth in Power program, which is a three-year grant program awarded to Panhandle Partnership, Inc. in cooperation from Community Action Partnership of Western Nebraska. 2022 grant funding was also awarded to Gering Public Schools and Panhandle Public Health for Career Pathways projects, to Panhandle Partnership, Inc. for the Root2Rise- Young Women’s Leadership program and a youth study, and to various high school seniors as scholarships for post-secondary education. Learn more about the work we do with partners at: https://www.snowredfern.org/nonprofits/.

About the Snow-Redfern Foundation

In 1951, Arvilla Snow-Redfern created a home for orphaned, homeless, neglected, and underprivileged youth and believed every young person needed home, encouragement, and training. As the foundation translates her original intent to be relevant in today’s world, the spirit and her vision are closely maintained to ensure the Nebraska Boys Ranch history continues to enrich the culture of the foundation.

Grant Recipients

2022 Project Grant Recipients: Alliance Public Schools, Camp Scott, Carnegie Arts Center, City Sprouts, Crawford TeamMates Mentoring Program, DIBS for Kids, Hay Springs School-Community Foundation, Omaha Conservatory of Music-Panhandle program, CASA of South-Central Nebraska & District 10 Probation, Dawson County Parent-Child Protective Services, Inc, Families CARE, Inc, Lexington Public Schools, Lexington Public Schools Backpack Program, Maryland Living Center, Panhandle Public Health District, United Way of Western Nebraska, We Can Do This, Alliance Recreation Center, Banister’s Leadership Academy, Carpenter Center, Chadron Recreation Center, Cirrus House, Inc, EPIC! For Girls, Girl Scouts Spirit of Nebraska, Heartland Equine Therapeutic Riding Academy, Kearney Public Schools, LyonHeart Equine Assisted Learning, Nebraska CASA Association, Nebraska Children’s Home Society, Omaha Street School, Inc., Panhandle Partnership, Inc., Prairie Loft, TeamMates of Scotts Bluff County, WhyArts, Inc., African Culture Connection.

2022 Program Grant (Youth in Power) Recipients: Panhandle Partnership, Inc. (in cooperation with CAPWN and Blue Agate Collaborative).

2022 Root2Rise Young Women’s Leadership Program Recipients:  Panhandle Partnership, Inc. (in cooperation with Blue Agate Collaborative)

2022 Youth Study Recipients:  Panhandle Partnership, Inc (in cooperation with Blue Agate Collaborative and GIS and Human Dimensions, LLC)

2022 Career Pathways Recipients:  Panhandle Public Health District and Gering Public Schools

Growing Up on the Snow Ranch

Shared by valued board member, Glenda Ehler

Growing up on the Snow Ranch is a great memory of my childhood. The comradery of neighbors during branding time, the competition with the neighbor kids to get to school, preparing our livestock for the county fair and general ranch life were all part of growing up. The greatest role model of my life has been my dad, Charlie Younkin. He and his father developed a herd of registered Angus cattle on the Snow ranch.  Arvilla Redfern was also an integral part of developing the herd which she later used as part of the development of the Snow-Redfern foundation.  From his memories of the ’49 Blizzard, through hay camp and flying a spray plane my dad always pressed forward, doing the best he could. He said:

“We did what we had to do with what we had, and we were luckier than some.”

What do you have?

Do you have time you could invest in a young person, by becoming a mentor to walk alongside them as they do what they have to do to be successful?

Do you have the belief that young people can and will become successful by doing what they have to do with the resources they have?

Do you have resources to share that can assist young folks of Nebraska to become ‘luckier that some”?

Do you have the persistence to do what has to be done for youngsters who could use a boost?

Throughout my career in education, both as a classroom teacher, coach and school counselor, I have witnessed firsthand what a difference a caring adult makes in the life of a young person.  The Snow-Redfern Foundation seeks to support youth across the state in so many ways, I believe that Arvilla Redfern would be proud of the legacy she left and the work that continues to support that legacy through the foundation.

That it is an echo of things that last.

In the words of Arvilla Redfern, taken from a poem she wrote.

    At a Glance

There comes from out the silent past

An echo-as of things that last

And seem again to be so real

As memory breaks the silent seal.

When Theresa’s nephew Travis was removed from his home and placed in foster care, Theresa connected with Nebraska Children’s Home Society (NCHS) to discuss the adoption process. As an adoptee herself, Theresa remembered the traumas associated with her adoption, and she vowed to find and give Travis the support that was missing from her experience.

When Theresa was adopted, she felt like she didn’t have anyone in her life who was supportive of her identity and the struggles that she faced. As a teenager, she left her adoptive parents to stay with relatives – a decision she would regret.

On her adoption journey with Travis, Theresa is committed to not making the same mistakes she experienced as a young person. She ensures that Travis feels supported and understood and does not have to face challenges alone. In partnership with their Families Forever program specialist, Theresa and Travis are working through feelings of loss, rejection, guilt, grief, identity, and control. In addition to beginning to work through the trauma of her adoption, Theresa is understanding and identifying ways she can support Travis through his adoption experience.

Families formed through adoption and guardianship face unique and unexpected challenges. But with access to one-on-one mentoring and peer support, Theresa is confident she can overcome the challenges facing her family.

The Families Forever program helps families formed through adoption or guardianship access the tools, resources, and strategies they need to adjust to their new home life and deepen their bond as a family.

We are pleased to be a funding partner for the important adoption and guardianship support that NCHS provides across Nebraska.  For more information, call 402.451.0787 or visit https://nchs.org/families-forever/.

Camp Scott just finished up their 2022 Enrichment Project and shared some of the fun activities the campers participated in!

Thanks, Snow-Redfern Foundation for making it possible for these experience and others we were too busy to photograph!

Campers were able to experience custodial tasks since cleaning is both a future employment possibility—and an everyday life skill.  They practiced safe food handling, vacuuming rugs, cleaning floors and mirrors and bathrooms.  They also explored cleaning vehicles!  Some funding provided basic squeegees and cleaner.

Campers went to Monument Car Wash to learn new skills and enjoy a fun, soapy water experience. That was a favorite.  Owners provided this learning opportunity at no charge!  Bright lime green safety vests were purchased to become the professional uniform when they practiced custodial skills and visited sites in the community—hotels, the zoo– every business and home cleans!  The “uniforms” can be reused next year.

Keith West Productions gave a private magic show which allowed for accommodations for camper needs.  For many youth, being in a huge crowd at the public library show would be overwhelming.  The magician could personalize the show to help us enjoy it more.

All campers got to swim in the YMCA indoor facilities on two Fridays.  It includes a heated therapeutic pool helpful to some campers.   Campers need extra supervision and seldom get to swim unless they have the support of counselors.

YMCA Trails West was used for an overnight sleepover experience. Older campers enjoyed the outdoor pool, cooking their own supper, playing games, exploring nature and the sleep over experience many had never been able to do before.

The last day of camp, children went to the Gering Pool—which had a slide for our bravest mobile kids to enjoy.  Gering swim time was done during open swimming time so kids could be introduced to swimming when other people are around.

When campers visited the Carpenter Recreation Center, they enjoyed activities in the gymnasium and fitness rooms, but it was extra fun to get to be on the soft mats, trampolines or jump into the foam pit. Tumbling classes don’t usually accommodate kids with physical challenges, but that day the campers were gymnasts! Carpenter Center also did the tour and experience  at no charge!

A statue of a chimpanzee feels like a safe way to look closely!  Riverside Discovery Center and Zoo enriches in so many ways—all those animals, habitats and nature!  There is even a splash zone—so fun to get sprinkled!  At the petting zoo area, one camper was even nipped by a baby goat! That is taking sensory experiences a little too far—but he wore that band-aid like a badge of honor. Quite a story to tell mom.

Zwetzig Skate Park helped every child find a way to participate in movement to music. Skating is tricky but a support system helps.  Some kids rode scooters or bikes or twirled in their wheelchairs to the music.  Of course, the bounce house was popular with everyone.

Buckboard Therapeutic Riding Academy gave our children the opportunity to ride horses with support of a physical therapist and volunteers.  Both campers and horses enjoy being given tasks to complete.  Children who cannot ride at all still get to be up close to make friends with the horses.

Classic Lanes offered us the chance to go bowling and learn about their business.  They have adaptive equipment so everyone could participate.

Snow-Redfern funds allowed us to purchase official culinary aprons to help campers feel more professional as they took culinary lessons three times a week.   Funds also  purchased basic kitchen equipment to  allow campers to explore cooking as essential life and career skills. The major focus was on spread, slice, measure, and mix. And—of course—taste new foods! Counselors reported that by the end of camp, kids were reporting to the kitchen with clean and sanitized hands—that was progress!

The food they prepared looked simple, but it is difficult when you have challenges! Most kids learned to hold the item down while they spread—some kids needed an adaptation such as putting a dab of frosting on the plate to hold the cookie while they spread frosting on the top. They got to spread strawberry and grape jelly in stripes to make flag bread, sliced vegies for dip and made pancakes on the new griddle.  Campers even pulled the pork roast for the sandwiches served at the family picnic.

With the help of the Snow-Redfern Foundation help, campers were able to attend the children’s movie at Mid-West Theater.  It was so fun to see the art deco murals and sit in the dark with our snacks and our new camp friends!

Thanks so much , Snow-Redfern Foundation,  for making it possible for Camp Scott to have so many learning experiences this summer!

Hey soon-to-be seniors and parents!  Are you making preparations for your future?

Board member and Outreach Services Manager for Education Quest, Andrew Hunzeker, shares a few tips on how you can use your summer wisely in preparation for the fall!

 

The summer before your senior year is flying by.  These are some ways to use your summer to prepare you for the fall.

Volunteer Hours

Community service is a great opportunity to build your activities resume to make you look better for scholarships.  Something as easy as helping your church with vacation bible school or cleaning up a park in your community can give you better chances at receiving scholarships.

ACT Practice Tests

Something else you can do to prepare you for the fall is to take ACT practice tests online. Putting the time in with practice tests are a critical (30%+) part of a good ACT study program and will improve your chances of a higher score. Check out more pointers about practice tests at:ACT Practice Tests: What They Can and Can’t Do (prepscholar.com)

Colleges look at ACT scores for scholarships and sometimes admission.  The practice tests you take should be free, steer clear of scams that charge you.

Research Jobs of Interest

Now is the perfect time to research different jobs that may interest you.  Ask employers if you can shadow the job you like to see what all it entails. You may be considering various career paths that require diferent levels of education or certification, so knowing what you will need to secure a job in that field is imperative to planning.

Check out Colleges with Programs of Interest

Once you have an idea of what career interests you, search for colleges that have the program for that.  Keep in mind, in-state colleges are typically less expensive.  If you can go visit a college, even better.  By visiting a college you will get a better feel for the college and if it’s the right fit for you.

Also begin considering all college options, which may be only a certification program, an assoicate degree from a community college, or a bachelor’s, master’s or doctorate from a sate college, private college, or university. This may even include a combination of colleges to acheive your final goal, such as completing your general education hours at a community college and transfering to a state college, for instance.

Your Senior Year

When fall arrives, you will feel more prepared for all of the next important deadlines and tasks that will mark the end of your highschool career and the beginning of a college career or your chosen industry career.  With many things to consider about your future goals, now is the time to put thought into what intersts you so that you can dive right into planning in the fall.

Learn more and get resources and support at: MyEducationQuest – EducationQuest

Early Childhood Special Education Teacher and Snow-Redfern Board Member, Jenny Lanik, is not only an early childhood Special Education Teacher, she is a busy mom with lots of love and experience.  Jenny shares her early childhood expertise with parents on how to keep little ones engaged this summer!

Keep Your Litte Ones Engaged

Learning doesn’t stop when the final bell rings signaling it’s summertime. Summer can actually be an enriching time to build background knowledge through experiences and refresh skills that were acquired during the school year. Parents can use everyday experiences to continue learning.

Visit the Grocery Store

Going to the grocery store has so many possibilities for learning. When walking down the produce aisle, you can categorize fruits and vegetables. Play “I Spy” with the store items which will promote the use of descriptive language. See if your child can recognize any letters on the cereal boxes or words using environmental print. These activities can also be a distraction when it comes to your child “needing” many unwanted items at the store.

Blow Bubbles

Blowing bubbles is a fun summer sensory activity. Parents can help children make their own bubble solution allowing for some science discovery within the process. Once the bubbles are ready to be blown, have your child count how many bubbles they can pop. Parents can turn the activity into a language/math experience by encouraging them to pop all the big bubbles first, medium ones next, and small ones last.

Catch a Sunset

Catch a sunset while on a bike ride or walk by engaging your child’s gross motor skills and mind. Look at the colors in the sunset and see if they can identify them. This would also be a good opportunity to invoke some higher level thinking by asking, “Why do you think the sunset is that color?” or “Do you think the sun sets in the same place each night?”

Opportunities to Think Critically

As a parent you aren’t necessarily looking for a perfectly correct answer, but you are giving them the opportunity to think critically. Read, read, read, and read some more! Local libraries usually have a summer reading program, so join one. Children who are read to have a better vocabulary, easier time learning to read, and develop a greater love of reading compared to those who aren’t read to.

Finally, summertime is supposed to be FUN. Don’t forget to enjoy and have fun with your child. Children are only in your home for eighteen summers and they sure go fast so make the most of them.