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CNN news anchor, Anderson Cooper, is the son of Gloria Vanderbilt who died last month at the age of 95. She in turn was the great-great-granddaughter of Cornelius Vanderbilt. She left all of her estate to Cooper save for her $1.2 million Manhattan co-op which she left to her son, Stan Stokowski.

Gloria Vanderbilt inherited a trust fund worth $35 million in today’s dollars when she turned 21. She also rode the wave of the designer jeans trend in the late 1970’s with her eponymous fashion which was worth $100 million at one time. Initial reports soon after her death speculated that she was worth $200 million. Probate Court filings have since revealed that she only owned her co-op and $1.5 million.

Several points, none too shocking:

1. The data about her net worth would be private if Vanderbilt had used a funded trust for her estate planning.

2. Rare is the fortune that lasts five generations before it is dissipated.

3. Four divorces, dedication to philanthropy, advisors who embezzle, and living into one’s 90s deplete one’s assets.

4. An incredibly gifted plastic surgeon will also deplete assets.

 

Photo Credit:  Unknown

License:  Fair Use/Education

Guardians, Drugs, and Embezzlement

boston guardian

 

A Massachusetts man was appointed guardian of his niece and nephew when their parents died in a car crash in 2009.  The man was recently indicted for allegedly stealing approximately $250,000 from their trust fund in the 11 months after he was released from rehab.  He pleaded not guilty.

Three very quick points:

  1. I always recommend that clients designate different individuals to serve as guardian and trustee.
  2. If different people, the guardian should be able to ascertain if the trustee is stealing from the trust.
  3. Embezzlers are smart enough to not use stolen funds to buy tangible property, but not smart enough to avoid being caught.  Such is the lot of gambling and drug addicts.   

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All Posts By Jay Brinker

I am an attorney located in Cincinnati, Ohio who practices in the areas of estate planning, probate, asset protection, and small business advice. I make a difficult and bewildering process as simple as possible. Most importantly, I provide "more for less" for my clients.