Valuetainment - “Who Really Owns The Empire Now？” – Billionaire Heirs Battle Trusts, CEOs And Family Offices

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00:00:30.360 Billionaires are fighting their heirs for control beyond the grave.

00:00:34.160 This is a Bloomberg story.

00:00:35.560 They're fighting their kids on what's going to happen with the money that they made

00:00:39.280 that's going to the kids or not going to the kids.

00:00:42.120 They're having fights.

00:00:43.360 So what does this mean?

00:00:45.400 A growing number of billionaires are using trust not to just pass on wealth

00:00:48.620 but to control how their empires operate long after they're gone.

00:00:52.540 What founders view as protection is often viewed by heirs as restriction

00:00:56.260 As family office advisor Kirby Rosplock puts it, what one generation might see as protection, the next generation experiences as restriction.

00:01:04.240 The Pierre Castle case, the 99-year-old founder of a drinks empire worth roughly $10 billion, spent more than three decades constructing an elaborate succession structure.

00:01:14.040 He consolidated ownership through Gibraltar, created a foundation in Liechtenstein, established a trust in Singapore. 0.95

00:01:23.120 That is some technical shit right there. 0.86

00:01:24.900 The goal was to minimize taxes, preserve the business, and prevent the future family conflict. 0.97

00:01:29.800 Instead, the succession plan itself has become the source of conflict.

00:01:32.740 The family is fighting the system.

00:01:34.260 Earlier this year, Castle's daughter, Romy, and his nephew, Alain, attempted to remove the CEO chosen by Pierre Castle.

00:01:40.740 The dispute has now reached Singapore's Supreme Court.

00:01:44.240 At the center of the fight is the question, who actually controls the empire, the family or the trust structure created to constrain the family?

00:01:51.200 Number two, separating ownership from control.

00:01:54.000 One of the key features of modern billionaire succession planning is the separation of economic ownership from decision-making power.

00:02:00.700 Family members may receive dividend and inherit wealth while being denied meaningful control over the business itself.

00:02:07.460 Number three, last but not least, the real fight is control.

00:02:10.320 Romy Castle argues that CEO Gregory Clark has accumulated excessive influence and is attempting to take control.

00:02:16.160 The opposing side argues that the trust structure is functioning exactly as intended and that management should remain independent from family politics.

00:02:25.200 Tom?

00:02:26.180 You know, this is a headline because people, Bloomberg said, the heirs control from beyond the grave and they try to create clicks in a headline.

00:02:34.520 But really, it's a very, very simple issue. 0.99

00:02:37.460 The little greedy bastards in the next generation want to go grab the money and have fun. 1.00

00:02:42.320 Yeah. 0.99

00:02:42.520 And the previous generation built it, and he took a few steps here because of taxes that were legal, and we would say he's stretching.

00:02:50.340 No, he's not.

00:02:51.000 He did what was legal to create entities for tax purposes.

00:02:54.260 It was legal.

00:02:55.080 You don't want him to do it anymore?

00:02:56.940 Take those off the books.

00:02:58.160 Those are no longer valid tax options, and he doesn't do it.

00:03:01.000 But the real issue here is the spoiled brats of billionaires, and I'll put two sides on this. 0.99

00:03:08.460 One, they're giving in to their human desires just to get the money from dad. 0.81

00:03:11.760 But number two, if you raise kids that are going to be spoiled brats and you have a lot of money, you can expect this behavior.

00:03:19.480 You need to raise kids that respect what's going on and understand how this game is going to be played.

00:03:25.420 And you need to be the kind of father and the kind of, you know, scion of the family office that says, this is how we're going to do it.

00:03:34.100 This is how it will be laid out.

00:03:35.500 If you raise enabled spoiled brats, Pat, you can expect them after you're gone to go get lawyers and try to manipulate things and get there.

00:03:43.320 But the story here that Bloomberg misses, and I'm not surprised that Bloomberg missed it, is that what about the family offices that somehow raised great kids and the feelings and the desires and the impact points of the family scion was maintained?

00:04:00.000 I believe in education. Long after I'm gone, I want the following things to happen.

00:04:04.780 And this is the way we're going to do it. You know, that's they're leaving out that part.

00:04:09.120 Snyder, one sense you're kind of saying I'm setting this up because I know I'm a terrible father.

00:04:15.980 I don't trust my children to take over the family business and maybe they know their kids well.

00:04:20.280 But what Tom says is exactly right. But even if you do raise good children, there's still going to be conflict.

00:04:26.400 Say you groom your son to be or your daughter to take over your family empire.

00:04:31.100 They're going to have their own ideas anyway.

00:04:32.800 There's always going to be a clash. 0.99

00:04:34.080 The trust and the lawyer are the redder. 1.00

00:04:36.400 They should be.

00:04:37.060 But you can also make the other argument that when you have a beneficial economic interest, but you don't have active control, you're just a passive investor, there's always going to be legal and natural tension there.

00:04:48.260 So I think the thrust of the story is you're inviting trouble, but there is no good solution to this other than to be a better father.

00:04:55.600 Yeah. What's the alternative? The alternative is pretty much allowing everyone to fight over the money, destroy the business.

00:05:00.780 How many generations? Let's be honest. They're going to they're going to fight anyway.

00:05:03.500 They're going to do it anyway. But, you know, so how many generations?

00:05:07.320 There's a study. It takes like three generations. Three to four. Yeah.

00:05:09.640 So it's proven. I think that's right. It's proven.

00:05:12.360 I saw people lose everything. I managed money for wealthy people.

00:05:14.920 Vanderbilt only made it for two. Yeah. And I wouldn't be.

00:05:17.500 Medici's did it right. Rockefeller's did it right. There's a few families that did it right.

00:05:20.960 Medici's, I think they're on seventh or eighth generation.

00:05:24.200 There's a lot of families that you'll look at on how they set them up.

00:05:27.140 A lot of them have done it the right way.

00:05:29.300 There's a book everybody who is concerned about this topic should buy.

00:05:32.720 It was by a guy named Jonathan Kurtz.

00:05:34.420 It's called Leave a Legacy, and he breaks down one of the studies,

00:05:37.800 a study from Oxford that looked at families in the U.K.

00:05:43.040 that had a lot of wealth that the money kept for over 1,000 years.

00:05:47.380 That's a long time to keep within a family, right?

00:05:49.560 In America right now, if you have slats that are set up, slats in some states allow you to keep the wealth and pass it down for 1,000 years.

00:05:58.480 I think some of them are limited to 1,000.

00:06:00.300 I think you need to look at this.

00:06:01.400 I think this is a very serious decision that you need to make as an individual.

00:06:04.740 It's funny because the Murdoch family, when Succession, the show came out.

00:06:08.780 I don't know if you guys have seen Succession, the show.

00:06:10.340 I've never seen it.

00:06:11.120 But the Succession, the show is based on a Murdoch family.

00:06:14.680 And the family apparently sees the show and they're like, wait a minute.

00:06:18.420 This is about our family. 0.91

00:06:19.560 holy shit let's get it together so there's a documentary that came out about the murdoch 0.98

00:06:25.000 family can you type in murdoch family documentary fox news it just came out a few months ago 0.98

00:06:30.780 if you've not seen it yeah the dynasty oh i'm gonna have to watch oh you've never seen it no

00:06:34.900 and i love success the murdochs and it's full-on showing everything that's going on and where they

00:06:39.800 are now what happened to the younger son because typically in these types of families you have

00:06:44.280 different types of kids one kid's going to be the playboy one kid's going to be the stable the guy

00:06:50.020 that you can rely on and all this stuff then the girl you have to worry who she marries if you got

00:06:54.200 boys and girls so there's a lot of different elements to it so i think if anybody wants to

00:06:58.020 take this thing really seriously order the book leave a legacy watch the documentary leave a

00:07:04.480 legacy and last but not least do go watch the movie joe black in a movie joe black if you i don't know

00:07:10.320 if you've seen the movie Joe Black, Meet Joe Black with Brad Pitt and Anthony Hopkins.

00:07:15.320 Phenomenal.

00:07:15.880 That girl in the movie at one point was every guy wanted to be with the girl. 0.99

00:07:20.700 I don't know what she's doing now.

00:07:22.160 But in the movie Meet Joe Black, you know, Joe Black is death.

00:07:26.920 So he comes to Anthony Hopkins.

00:07:28.880 Anthony Hopkins is having chest pains, and it's a very interesting scene.

00:07:32.460 Somebody's at the front door.

00:07:33.580 He comes, and they have the conversation together.

00:07:35.680 But if you watch the movie, he has two daughters.

00:07:39.280 One of them loves her.

00:07:40.620 He can't do anything wrong in her eyes.

00:07:43.440 The other one is trying to be him to run the business, the legacy business.

00:07:48.060 His right-hand guy that gets in the business starts having so much influence over the company and the board that he flips the board against him.

00:07:56.020 And there's a very good scene in this movie.

00:07:58.420 So I do believe when I'm reading this story in this article about the fact that the kids are like, wait a minute, this CEO is getting a little bit too much power and is pinning us.

00:08:05.960 I agree with them.

00:08:06.800 That can happen.

00:08:07.780 And you have to be aware.

00:08:09.060 You have to watch that.

00:08:10.040 You have to see what's going on there because, again, everybody has different motives.

00:08:13.100 So for anybody that wants, this has been a part of our discussion for the last few years as a family,

00:08:17.920 one recommendation I would give to any father and their family is openly talk about it.

00:08:24.080 Openly talk about it.

00:08:25.580 Get them involved.

00:08:26.840 Ask them, what do you think should happen?

00:08:28.940 Let them agree on it.

00:08:30.180 Let them decide on some of this stuff.

00:08:32.120 Not the whole thing.

00:08:32.780 You're the shot caller. 0.99

00:08:33.660 You decide, of course, if they're going to be like, well, give us all the money now, bullshit. 0.98

00:08:36.660 But allow them to be involved in some of the decision-making process with the ability to reason and let them say, you came up with this decision. 0.95

00:08:44.060 You guys voted on this.

00:08:45.400 You guys wanted to set up this way.

00:08:47.100 You guys made this decision together to make sure that because the last thing you want as a father, I know you want to say something.

00:08:53.720 I'll come to you here in a minute.

00:08:55.040 The last thing you want as a father, we had a lady, part of our family in Iran. 0.99

00:08:59.420 Her name was Shirin, and her husband was a doctor, and they made good money.

00:09:03.280 One day, my mother told me one thing they did, which was very interesting.

00:09:06.660 Their son, Ali, I think, ended up becoming a doctor, pretty successful one.

00:09:10.040 And their daughter, I don't know what the daughter's name was, Shabnam.

00:09:12.860 I don't know what her daughter's name was.

00:09:13.940 Very good family.

00:09:14.620 One of our favorite families we used to like to hang out with.

00:09:17.160 The father made a decision that the money that was going to the kids,

00:09:20.900 he gave it to them while they were alive.

00:09:23.400 And he says, everything we're keeping, we're going to keep and we're going to give to charity.

00:09:27.260 But the money that you were going to get after we died, we're giving it to you now.

00:09:30.380 Why?

00:09:31.140 Because we don't want you to be counting the days of when we're dying.

00:09:34.100 So I actually really like that setup as well to say, look, don't be like,

00:09:38.860 well, my mom dies, well, my dad dies, well, my dad dies.

00:09:41.200 We're going to go, well, my dad, oh, my God, when has he died?

00:09:43.180 Did he die?

00:09:43.920 So there's an element of, like, that business life settlement,

00:09:46.480 which I never wanted to get into.

00:09:47.800 Life settlement is a business that you're hoping for the clients.

00:09:50.600 The sooner the client dies, the more money that you make.

00:09:52.580 So it's a very technical and complicated thing.

00:09:55.340 I can talk about this for hours because we've been dealing with this.

00:09:58.080 Umberto.

00:09:58.480 I want to have the other perspective.

00:10:00.120 As a victim of this, you know, my family, four, five generations ago,

00:10:06.120 they were in charge of all the, before the Panama Canal was built,

00:10:09.660 they were in charge of all the trade that went through the bottom of South America.

00:10:12.840 All right?

00:10:13.140 We still have a museum there and a cemetery.

00:10:15.780 But in three generations, they drunk, traveled, and spent all the money.

00:10:21.120 This happened to your family?

00:10:21.940 This happened to my family.

00:10:23.240 That's pretty good.

00:10:23.400 You know what I mean?

00:10:24.140 Like, you can still go.

00:10:24.860 So you were supposed to get some of the money that comes to you?

00:10:27.000 I don't even, the money was gone on the third generation.

00:10:30.120 You know what I mean?

00:10:31.000 But the museums...

00:10:32.080 How strong was the family in Chile five generations ago?

00:10:34.280 How popular were you guys?

00:10:35.760 Probably, well, not that popular.

00:10:37.280 We can talk that off air because there's a few things.

00:10:40.340 But they were a huge family.

00:10:42.180 You know what I mean?

00:10:43.100 Well known, though.

00:10:43.800 Well known and respected.

00:10:44.480 Very well known.

00:10:45.400 Like, the biggest family in the south of Cone of South America.

00:10:49.800 And in three generations, because they didn't put any rules on how...

00:10:53.180 Very important.

00:10:53.860 ...how the vision was set, how to spend the money.

00:10:56.900 They didn't put any protections.

00:10:58.120 In three generations, it's gone.

00:10:59.300 You see it affect average American families all the time, even, just after.

00:11:03.820 I do think it's something that you have to be intentional about.

00:11:06.780 I do think you have to, you know, take this very seriously.

00:11:09.860 I do think you have to involve the kids.

00:11:11.800 I do think you and the wife needs to talk early.

00:11:14.100 Every one of these conversations that we have, like one of the things my wife and I,

00:11:17.260 we argue about a lot of different things if we have arguments over things.

00:11:20.160 You know what's the one thing we don't argue about, and we haven't for over 14 years?

00:11:23.600 We've been together. 0.99

00:11:24.640 Shit, my anniversary's in two days. 1.00

00:11:26.620 Oh, my God. 1.00

00:11:27.520 Good thing you brought that up.

00:11:29.320 You were about to argue about something, Pat.

00:11:32.420 Literally, in two days, it'll be 17 years we've been together, right?

00:11:35.860 If you ask my wife how many financial arguments we've had, she would tell you, I don't think we've had any for 15 years.

00:11:42.000 Everything got set up.

00:11:43.260 So we eliminated a lot of the financial arguments early to say, here's where we are.

00:11:47.920 As of right now, we could have a financial argument tonight over the gas prices or whatever we could have.

00:11:52.100 But I'm just saying, if you set it up properly and accordingly, you can eliminate a lot of these future arguments.

00:11:59.520 Fathers, July 1st, 6 p.m., we're hosting a webinar on the specific topic of fatherhood.

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Valuetainment - June 26, 2026

“Who Really Owns The Empire Now？” – Billionaire Heirs Battle Trusts, CEOs And Family Offices

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