Alternative title to this post: Why IFO Doesn’t Trust Trusts. A recent article in the WSJ scares the heck out of us, even though we would NEVER put our money in a trust.
Here’s our summary of the key points:
A family had been customers of a local bank for nearly 50 years when a money-laundering scandal at the Washington lender prompted them to take their business elsewhere. The family, whose fortune came from a company founded in 1911, moved two trust accounts in 2005 to a company associated with another bank. Now, some heirs of the founders of the company want to move their money again. The problem is they can’t.
The family blames the second bank for poor investment returns, among other things. They can’t move the accounts, now worth $100 million or so, because of a fundamental error they made seven years ago when signing up: They failed to read the fine print.
Investment lesson? Read before you sign! and Do it yourself!!!