From Brooke Astor, a Thought for the Day

Born in Portsmouth, New Hampshire in 1902 and remembered over a century later in The New York Times as that city's "Aristocrat of the People," Brooke Astor died yesterday.

Vincent Astor, her third husband, left her $60 million and about an equal amount for a charitable foundation. Mrs. Astor took the job of giving money away seriously. She also found it fun:

With a wink and a sly smile, she liked to quote the leading character in Thornton Wilder’s play “The Matchmaker,” saying, “Money is like manure; it’s not worth a thing unless it’s spread around.”

The New York Times was clearly determined not to have Brooke Astor remembered primarily as "a victimized dowager at the center of a very public family battle over her care and fortune." Marilyn Berger's excellent obituary features Astor's philanthropy. If Bill and Melinda Gates can dispense their billions (and Warren Buffet's) with half as much care and enthusiasm as she demonstrated, they'll do well.

Brooke Astor was a hands-on philanthropist. (Well, almost. Ladies of her generation never stepped onto a New York City street without putting on gloves.)

She made it her duty to evaluate for herself every organization or group that sought help from the Vincent Astor Foundation. In her chauffeur-driven Mercedes-Benz, she traveled all over New York to visit the tenements and churches and neighborhood programs she was considering for foundation grants. Many times a welcoming lunch awaited her on paper plates and plastic folding tables set up for the occasion. She would exclaim over what she called the “delicious sauces”: deli mustard and pickle relish.

Because of her philanthropic zeal, major cultural institutions have the Astor name chiseled on their walls. Other gifts went unmarked but not unremembered: "new windows for a nursing home on Riverside Drive, fire escapes for a homeless residence in the Bronx, a boiler for a youth center in the Williamsburg section of Brooklyn."

The Times has created an extensive online tribute to Brooke Astor. You'll find it here.

Brooke Astor: And Now, the Will Contest

As noted here, Brooke Astor's guardians expressed doubts about the wills and codicils Brooke Astor appears to have signed in recent years.

Yesterday The New York Times reported that "the court-appointed guardians of Brooke Astor have filed legal papers saying that the will she signed in 1997 should be the valid one. They argue that she was not mentally competent or was unduly influenced when she signed her last will in 2002 and several amendments to it over the following two years."

The 1997 will is said to leave half the residuary estate in a trust to pay Mrs. Astor's son, Anthony Marshall, 5 percent of its market value yearly. The 2002 will as amended by its codicils reportedly leaves Mr. Marshall, age 83, the entire residuary estate outright.

What might happen to the remaining Astor fortune after Mr. Marshall's death is not clear from news reports. If he received the residuary estate outright, he might leave all or part of it to his wife, Charlene, age 61. If the trust called for the earlier will is established, presumably the remainder beneficiaries might include Brooke Astor's only grandchildren, Mr. Marshall's twin sons, now age 54.

Brooke Astor's Revised Will: “There Appear to be Improprieties"

The plot thickens! From today's New York Times:

Beginning in late 2003, the last will and testament of the socialite and philanthropist Brooke Astor was amended by a series of documents that redirected millions of dollars to her son, Anthony D. Marshall, and made him sole executor of her estate.

Now the propriety of those documents is being challenged by Mrs. Astor’s legal guardians. They question whether Mrs. Astor, now 104, was mentally competent to understand the changes to her will that she signed. In court papers, they also say that they intend to hire handwriting experts to determine if the signature on the documents is really Mrs. Astor’s.

The papers — and the suggestion that Mrs. Astor’s signature was either forged or procured through deception — indicate a new level of bitterness in the developing legal battle between Anthony Marshall and his son Philip, who has accused his father of neglecting Mrs. Astor’s care while enriching himself.

Mrs. Astor’s court-appointed lawyer, the Times reports, is “asking a judge to order the socialite’s last law firm to turn over the originals of her latest will, the three codicils that amended it and another document that gave Mr. Marshall, 82, the authority to handle her affairs.”

Brooke Astor's Wills: The Boxed Set

Yesterday, The New York Times reports, a massive set of volumes appeared in the court where Brooke Astor's son is on trial:

The putty-colored, tri-level cart stood next to the witness box, its 3-foot-long shelves filled with black binders the size of telephone books. The collection of paperwork represented the sometimes whimsical, sometimes meticulous nature of Brooke Astor. The binders contained more than 30 different wills and amendments to the wills that she executed over half a century.

The wills and codicils were entered into evidence as Henry Christensen III, Mrs. Astor's longtime lawyer, took the stand.

Was a 2003 codicil, the last Christensen prepared, signed while she was competent?

Could she have been incompetent shortly thereafter, when she signed a codicil prepared by Francis X. Morrissey Jr, the lawyer Astor's son chose to replace Christensen?

Stay tuned.

Brooke Astor's Amazingly Lucky Lawyer

A few years ago, Brooke Astor, now age 104, decided to change lawyers, possibly at the suggestion of her son, Anthony Marshall. She discharged the august firm of Sullivan & Cromwell, who had handled her affairs for 40 years, and engaged Francis Morrissey.

Francis Morrissey has been a very, very lucky fellow. According to The New York Daily News, elderly people are dying to leave him significant shares of their estates.

Around the time Morrissey started advising Astor, he was left an apartment in Manhattan by one client. (After charges of undue influence, an undisclosed settlement was reached.) That was just one example of his extraordinary luck. The Daily News reports that several people wanted him on their list of beneficiaries.

Alexandra Gregersen, a psychiatrist, who died on Jan. 4, 2001, at age 90. Morrissey inherited two-fifths of her estate.

Elizabeth Von Knapitsch, a retired ladies apparel executive, who died at age 91 on Jan. 15, 2000. Morrissey inherited her Park Ave. apartment, two Renoir oil paintings, two other paintings, and an undisclosed amount of money.

Jay Lovestone, a labor leader who helped found the Communist Party of America, and worked with the CIA, died on March 7, 1990, at the age of 90. Morrissey inherited one-third of his estate.

Louise Morris, a housewife, who died on Oct. 22, 2002, at age 98. Morrissey received one-third of her estate.

Morrissey also serves as “primary contact” and, reportedly, a director for the Shepherd Community Foundation. Another director, a lawyer for Marshall told The New York Times, is Marshall's wife. As the Times puts it, An In-Law’s Charity Has One Donor, Astor, and Few Details.

From Kermit the frog we learned that it's not easy being green. From Brooke Astor we're learning that being very old and rich is no piece of cake, either.

Update: In Rich, Old, Unloved, Marketwatch points a moral: Wealthy oldsters need a system of checks and balances to protect them. How to meet that need? A trust institution:

“Impartiality no longer connotes uncaring. That, it seems, more and more, is left to relatives.

“Sadly, institutions may be better caretakers of money and health care than friends and family.”

Brooke Astor at 104: Does Wealth Invite Elder Abuse?

The New York Daily News broke the story yesterday, and papers here and abroad have been all over it today.

Brooke Astor, long-time socialite and philanthropist, is age 104. Her care and financial affairs had been turned over to a guardian, her only child, Anthony Marshall. He's her son by the first of her three marriages.

According to legal proceedings launched by Anthony Marshall's son Philip, that was a big mistake. Philip charges that his 82-year-old father has kept Mrs. Astor in her run-down NYC apartment without proper care, especially considering the standard of living that a reported net worth of $45 million should afford.

Pending a court hearing next month, a family friend and a corporate trustee, JPMorgan Chase, have been named to take over responsibility for Mrs. Astor's well-being.

Today's New York Times cites estimates that perhaps one out of every twenty old people suffer abuse or neglect.

“The greatest perpetrators of elder abuse are family members,” said Bob Blancato, national coordinator of the Elder Justice Coalition. “The rich and powerful are as helpless and vulnerable as anyone else.”

Professor Richard J. Bonnie [of the University of Virginia] described abuse of the elderly as “a kind of hidden problem, in all the settings in which it occurs, maybe even more so than child abuse is.”

He pointed out that institutional care had come under greater scrutiny in recent years, but that mistreatment of the elderly in the home presented a problem since it was not within regulatory oversight. Even well-intentioned relatives may be preoccupied with other burdens or not skilled in recognizing problems, he said. “And nobody’s looking over their shoulders.”

Financial exploitation, he said, “is most likely to occur when you have a sizable estate when the temptation for self-dealing may be greater because they’re concerned that the assets are going to be lost and not inherited.”

Another expert, Dr. Gregory J. Paveza of the University of South Florida, said that often when family members have been selected as legal guardians, “the court’s oversight is cursory at best.” The guardian, he said, “has absolute control over your life.”

You hear a lot about "The Sandwich Generation," Boomers with both kids to raise and elderly parents to worry about. As the Brooke Astor story shows, the sandwich is increasingly likely to be a double-decker.

Just yesterday, the Portsmouth, New Hampshire Herald published this story:

When Elaine Peverly, 82, walked into the Pines at Edgewood Center last October asking questions about whether the assisted-living home was a good fit for her mother, office manager Glenda Stewart thought she was crazy.

"I went over (to co-workers) and said, You guys won't believe it; a woman in her 80s thinks her mother is still alive," said Stewart. "Then, sure enough, in comes Mildred."

Mildred celebrated her 104th birthday this week. And, yes, "She's still touching her toes at age 104."

Brooke Astor's Questionable Codicils

If a settlement can be reached before Oct. 13, when a potentially "sensational trial" is scheduled to start, the legal status of three amendments Brooke Astor made to her will late in life may not be determinated until her death. So reported The New York Times last week:

Mrs. Astor’s court-appointed lawyer, who is questioning whether Mrs. Astor was mentally competent to understand the changes to her will that she signed, is challenging the propriety of the three codicils.

The lawyer, Susan I. Robbins, plans to have a handwriting expert determine if the signature on the documents is really Mrs. Astor’s.

Ms. Robbins is particularly concerned about the signature on the third codicil.

The Times notes that a settlement is far from certain. Anthony Marshall, Astor's 83-year-old son, would be required to step down as his mother's financial steward and designated executor.

Followup on Brooke Astor

Last July Jim Macdonald called to our attention the controversy over whether Brooke Astor's son had been taking proper care of his 104-year-old mother. J. P. Morgan Chase was appointed the temporary guardian of Ms. Astor, and they have uncovered what looks like some very questionable financial transactions. Details are reported by the New York Times in Mrs. Astor’s Son Is Accused of Mishandling Millions.

As to introducing a corporate fiduciary into Ms. Astor's financial life, better late than never?

Astor Estate: Criminal Intent?

Negotiations to settle the dispute over Brooke Astor's estate were close to success but have failed, according to an Associated Press dispatch:

At issue, in general, is which of two wills conveys the true intentions of Astor, the philanthropist who died in August at age 105.

Her son, Anthony Marshall, supports a 2002 will and codicils, or additions, which benefit him at the expense of the charities Astor named.

Others, including Astor's grandson, Philip Marshall, contend a 1997 will was the last one she was competent to sign.

The New York Times reports that settlement talks were suspended "because the Manhattan district attorney’s office is presenting evidence to a grand jury as part of a criminal inquiry into the handling of Mrs. Astor’s fortune and will by her son, Anthony D. Marshall, and others before her death. . . .

"[P]rosecutors are exploring, among other issues, whether Mrs. Astor was subject to undue influence related to millions of dollars in money and property transfers in the last several years that benefited Mr. Marshall, who had his mother’s power of attorney. The prosecutors have also been examining whether those transactions were in the best interest of Mrs. Astor or if they were larcenous.

"They are also seeking to establish whether crimes were committed in the signing of an amendment to her will in March 2004 in which the possibility of forgery has been raised."

Auctioning Brooke Astor's Stuff

Next month Sotheby's will auction off items from the late Brooke Astor's Park Avenue duplex and her country place, Holly Hill. Above, a detail from her portrait by Aaron Shikler,  expected to fetch $10,000-$20,000.

Below, a portrait of an Aberdeen Angus bull by Herbert Haseltine. Like Shikler, Haseltine was popular with the high-society set, and Astor owned a number of his bronzes.

Will collectors be eager to acquire Astor's knick-knacks? We'll see.

Mrs. Astor's Staff Was Listening

The New York Post has published excerpts from Meryl Gordon's Mrs. Astor Regrets. The new book seems unlikely to gladden the heart of Mrs. Astor's son and daughter-in-law:

Secret journals kept by Brooke Russell Astor's staff reveal tragic scenes, including one in which the society doyenne was literally dragged into a meeting against her will to sign over $60 million to her only son after she slammed her cane against the floor shouting, "Do you hear me?"

When they weren't caring for her in person, Astor's maids, nurses and butlers were listening to her private meetings via a baby monitor. They filled 30 journals over four years…

Meanwhile, the estate struggles to dispose of Brooke Astor's homes in a down market. Her palatial New York apartment is now offered at $34 million, down from $46 million.

Perhaps a better buy is her beloved Holly Hill in Briarcliff Manor. Sotheby's has listed the stone home, on 64 acres, at a mere $12.9 million. Judging from the photo at right, Holly Hill was a bright and cheery place. Hope the late owner was able to comprehend and appreciate her last days there.

HOLLY HILL

Brooke Astor's Bold Investments

Tony Marshall, Brooke Astor's son, claimed to have done well investing her portfolio, turning $19 million into $80 million or more.

Sure enough, an inventory of Mrs. Astor's estate last fall, reported in The New York Times, shows investable assets totalling $79.5 million.

Her asset allocation looks much more aggressive than that of the average multi-millionaire, not to mention the average 105-year-old.

Hedge funds and private equity 59%

Stocks 30%

Bonds 10%

Cash and equivalents 1%

For comparison, Northern Trust's 2007 Wealth Survey found the average asset allocation for those with $10 million or more was 40% stocks, 15% cash, 11% bonds, 11% private equity and 2% hedge funds, plus allocations to real estate and commodities.

Hedge funds, however, are a structure for pooled investing, not an asset class. The Times reports that Mrs. Astor had $20.6 million in a hedge fund that invests in equities. That suggests that over 50% of her investable wealth actually was allocated to stocks.

Brooke Astor gets a friend and corporate trustee as guardians

Brooke Astor's son Anthony Marshall was replaced as guardian of his mother's affairs by her friend Annette de la Renta and JPMorgan Chase & Co., settling a lawsuit that charged Marshall with neglecting his mother, according to this Bloomberg report.

A lawyer for the new, permanent, guardians says the settlement includes a court order that Anthony Marshall, Astor's son, and his wife will make "substantial immediate repayment of cash and other property, including jewelry and art, to Mrs. Astor's estate.''

Our Congressman is “Very Wealthy.” But Probably Not Rich.

The Senior Assistant Blogger's Congressman, Jeb Bradley (R-NH), faces a primary challenge tomorrow. He's expected to win handily and seek another term in November, despite some unkind words from Ken Silverstein at Harper's online.

With investable assets over $5 million, writes Silverstein, "Bradley is a very wealthy man." Silverstein believes the Congressman should have put his great wealth in blind trust before taking office and voting on matters that might line his own pocket.

Example: When he came to Capitol Hill, Bradley kept 231 shares of Halliburton, then bought 72 more and eventually sold them all for a profit of (brace yourself!) $2,791.08.

* * *

Like Ken Silverstein, I once punched keyboards for a living, and back then five or six million dollars did sound like a lot of money.

These days, it won't even qualify you for entry-level service at Bessemer Trust, minimum $10 million. According to Wall Street wealth rankings we noted earlier this year, you need $7 million to $10 million to be "kinda rich" and $20 million to be actually rich.

(Maria Sharapova, the new U.S. Open women's tennis champion, is reported to have built her investment portfolio up to almost that level, $19 million and counting. You go, girl!)

But $20 million is a long way from being very wealthy. The average top-25 hedge fund manager reportedly makes over $20 million per month. Even after taxes and yacht maintenance, said manager should be able to put aside $5 million a month. If his job lasts a year, that gives him a net worth of $60 million, competitive with Brooke Astor and other society swells.

Now that's wealthy. But not very wealthy, much less "wildly wealthy," as Silverstein terms Bradley in a later posting.

The very wealthy are America's garden-variety billionaires. There are hundreds of them, juding from the Forbes listings.

The wildly wealthy are Bill Gates and Warren Buffet, who are giving away billions by the barrelful but still have plenty more where that came from.

Jim Gust recently mentioned the Brooke Astor case. Anthony Marshall, Astor's son, has been forced to step aside while JPMorganChase and the court look into charges that he has skimped on his mother's care and paid himself too handsomely from Astor assets. I doubt that Marshall thinks of himself as "very wealthy." Yet the papers report that his annual income is in the millions. What's more, his current hobby is producing plays, an avocation that makes yacht maintenance look cheap. Mightn't his investable assets be well above Bradley's $5 million or $6 million?


Bottom line: Everything is relative. "Wealth" is a state of mind. You can't be too thin or too rich. That's good news for owners of exclusive spas, and it bodes well for the future of wealth management.

Brooke Astor's Duplex Sells for a Song

While appealing his conviction for swindling his mother, Brooke Astor's son has run up millions of dollars in legal bills. Perhaps, the NY Post suggests, that's why the Astor estate is willing to sell her Park Avenue duplex for less than half the original asking price of $46 million.

Brooke Astor's Defenders in the News

Brooke Astor's grandson Philip Marshall and a few friends like David Rockefeller helped rescue her from the clutches of Philip's father, Anthony Marshall. Both grandson and Rockefeller are in the news this month.

Philip was disinherited (no surprise) by his father.

 David Rockefeller this month celebrates his 100th birthday. The last surviving grandson of John D. led Chase Bank to global prominence and, despite a chronic case of philanthropy, still possesses a few billion.

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Inspired by his grandmother's difficulties, Philip Marshall has launched Beyond Brooke, dedicated to the cause of elder justice. Today, according to his calendar, Philip attended the 2015 White House Elder Justice Forum.

Brooke Astor's Son Loses His Appeal

We are not convinced that as an aged felon Marshall should be categorically immune from incarceration.

*** 

The lack of a criminal history is an ordinary circumstance that does not vitiate a prison term for obtaining millions of dollars through financial abuse of an elderly victim.

      – Justice Darcel Clark, New York State Appellate Court

 So ends (barring further legal maneuvers) a saga of elder abuse first noted on this blog almost seven years ago. Anthony Marshall, elderly son of Brooke Astor, faces three years in prison, The NY Post reports.

David Rockefeller and Brooke Astor

Following the death of David Rockefeller, John D. Rockefeller's last surviving grandson, Tbe New York Times recalls his role as friend and protector of his fellow philanthropist, Brooke Astor.

If you need to refresh your memory of "arguably the most sensational, high-profile case of alleged elder abuse ever to make the tabloids," scroll down our posts on the story.

Brooke Astor's Other Beneficiaries

Brooke Astor's 87-year-old son, Anthony Marshall. gets $14.5 million under the will settlement announced today. One major charitable beneficiary, The Metropolitan Museum of Art, gets $20 million or so, presumably including $3 million in token compensation for the Childe Hassam flag painting, sold by Marshall, that the museum expected to receive.

Not yet tallied, the immense sums the dispute has generated over the years for lawyers – lawyers for the estate, lawyers for family members, lawyers for assorted charitable beneficiaries, even lawyers for lawyers.

JPMorgan Chase and Howard Levine, the estate's administrators, won't do badly either. The Court instructed them to split one administrator's fee, not to exceed $5 million.

Want all the details? The New York Daily News has posted the court papers here.

Mansion for Sale – and Dig That “Open House”

In the 1940s Vincent Astor moved from his Hudson River mansion to Astor Courts, a sporting complex on the estate (tennis and squash courts, swimming pool, etc.) which he had converted to a home. After his marriage to Brooke Astor, presumably they lived there from time to time.

Tomorrow, Astor Courts hosts Chelsea Clinton's wedding. The place is for sale, and perhaps the lavish "open house" staged by the Clintons will entice a buyer.