Rich Feel Victimized by Irrevocable Trusts

By deCourcy, Michael | THE JOURNAL RECORD, July 5, 1991 | Go to article overview

Rich Feel Victimized by Irrevocable Trusts


deCourcy, Michael, THE JOURNAL RECORD


WAYNE, Pa. _ Whether the rich get richer was the topic that drew 40 wealthy people into the Wayne town library in one of the old Main Line suburbs that sprang up west of Philadelphia after the rail line to Pittsburgh was laid in 1846.

The consensus among these Main Line millionaires, heirs to fortunes in root beer and department stores, was that no, the rich are not getting richer _ particularly the rich whose ancestors' fortunes are tied up in older trust accounts that give banks nearly complete control over how the money is invested and spent.

Before the 1960s, these irrevocable trusts usually named banks to manage the money for generations, making it nearly impossible for beneficiaries to take their business elsewhere if they were dissatisfied.

Now, partly as a result of the flux in financial institutions, the trusts, whose primary purpose is reducing inheritance taxes, generally provide for the replacement of trustees.

The meeting's organizer, Standish H. Smith, who has $5.2 million in his wife's trust to worry about, is co-founder of a consumer advocacy group called Heirs. Its 150 members are mostly drawn from the Social Register, and their purpose is to make banks release unhappy trust customers.

"This is a crusade, that's what it is," Smith declared.

Smith acknowledged that it has been a challenge to stir up public interest in the plight of the rich, especially since most rich people in these parts don't even talk about money at dinner tables, never mind public meetings.

The focus the meeting was to discuss increases in bank fees, possible lawsuits and legislation. Exhibits told a tale of horror.

Graphs showed that skyrocketing bank fees now chew up $20,000 of the $120,000 annual income from a typical $3 million trust fund. Financial mismanagement was depicted by enlargements of newspaper articles, which described how trust companies auctioned off mansions and 150-acre estates for distress prices in the seven figures.

Like any other group of consumers who feel victimized, these people shared angry feelings of powerlessness. "I just feel controlled by these trust officers," Smith said. "Whatever they want, they do. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Rich Feel Victimized by Irrevocable Trusts
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.