Doris Duke, born in 1912, was one of the oddest characters of her time; her life was similar to what one might read in the tabloids. At age 12, Doris was heiress to the American Tobacco and Duke Power fortunes; at the time she rivaled Queen
Elizabeth of England and Queen Juliana of the Netherlands for the title of world's richest woman. Her father, James Buchanan Duke, grew up in North Carolina , which had been left impoverished and desolated by the Civil War. At age 27, he moved to New York to establish and manage a branch factory of W. Duke Sons and Company, tobacco manufacturers. Within five years his tobacco company had become by far the largest cigarette producer in the nation. He then took the lead in forming the American Tobacco Company in 1890. By 1901 he had expanded his operations into the British Isles where he created a multinational enterprise known as the British-American Tobacco Company. By the early 1900s his company controlled more than 90% of all cigarette sales in the U.S. Mr. Duke also founded the Duke Energy Company and was a major benefactor of Duke University in his native North Carolina . When he died in 1925, he divided his fortune between the Duke Endowment, which served the people of the Carolinas , and his young daughter Doris, who received approximately $30 million.
Doris Duke was a private woman but much of her ordeals were well publicized: from failed marriages and torrid love affairs to an accidental homicide she committed and an unsuccessful late- life adoption of a 35-year-old former belly dancer turned
Hare Krishna. On the other hand, Duke contributed mass amounts of her inheritance to numerous public causes. Throughout her life she pursued various interests, including travel, music and dance, historic preservation, environmental conservation, wildlife and horticulture. She was an active supporter of medical research and child welfare. At the age of 21, she established a foundation that she called Independent Aid, which today is known as the Doris Duke Foundation. During her lifetime she contributed over $400 million in today's dollars to different foundations.
In Doris ' later years she hired a new butler, Bernard Lafferty, who had been a butler for singer Peggy Lee. He was also a dense and semi-illiterate Irishman with a weakness for drugs and alcohol. Soon after being put on the payroll, Lafferty
began to cultivate a close relationship with Duke. They were practically inseparable. As Duke's health began to deteriorate, Lafferty began turning away visitors that came to check up on her. Even her stepbrother, Walker Inman Jr., and her cousin, Ambassador Angier Biddle Duke, found themselves being turned away by Lafferty. Duke died in October 1993, at the age of 80, with Lafferty by her side. For years she had suffered from a number of heart problems, but in a reflection of her tabloid life, rumors of foul play began to circulate.
At the time of her passing, Duke's estate was estimated to be worth approximately $1.8 billion, most of which was allocated to her charitable foundation. Before she died she had rewritten her will at least six times. The final revision, which shocked everyone, named Lafferty trustee of the Duke Foundation. The will provided him with a payment of over $4 million as well as an annuity that would pay him $500,000 a year for the remainder of his life. Even more bizarre, Duke's will ensured that her camels were provided for and that a $100,000 trust be set aside for her dog, Minnie. While the Foundation carefully divvied up the money as specified by Duke's 50-page trust, Lafferty began spending the money lavishly—far more than his annual salary. After a two-year battle over Duke's estate, he was ousted as an executor of the estate and the power was left solely to U.S. Trust. The decision was based to some extent on questions over whether Duke was of sound mind when she put together her last will and signature from her hospital bed. Also brought into question was whether her peculiar choice of primary executor was competent enough to assume such a lofty task. Experts estimated that the attorneys challenging and defending Duke's estate had generated well over $50 million in legal fees and expenses before one penny was sent to the Foundation. After his removal from the estate, Lafferty became depressed and disillusioned. He spent the last years of his life drinking away his sorrows. In November 1996, in Los Angeles , Bernard Lafferty died at his home in his sleep.
What Could Have Been Done Differently?
Everything about this situation was a bit odd. I guess one could assume that such an eccentric woman would only leave behind an equally odd estate plan. Where to begin? It is always good to know how you want your estate to be structured;
starting early and reviewing frequently usually helps in the process. More importantly, Duke should have thought about what she wanted to do with her assets while she was still considered mentally competent. Making important decisions about your estate months, weeks or even days before your death only decreases your chances of having you estate plan work out as envisioned. Always consult a professional to help you structure your plan. You may think you know how you want your estate mapped out, but having a professional put it into words will insure that it happens.
This article is not intended to provide specific advice or recommendations for any individual. Consult your financial advisor, with questions. John Bennett Petrick and the representatives of Perennial Financial Services are registered representatives with and offering securities through Linsco/Private Ledger (LPL) Member NASD/SIPC. Linsco/Private Ledger representatives offer access to Trust services through The Private Trust Company N.A., an affiliate of Linsco/Private Ledger Corp. CA Insurance #0E03441
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