The Washington times., 1925-06-17
BANKS LEND MD.
To INSURANCE
COMPANIES
Growing Spirit OF. co-opera-
ton Over Handling of I
Estates Seen
By RICHARD HATTON.

closer alliance between life insur-
arce companies and trust COM
panic is one which thoughtful
people are commencing as making
for great benefit and security Tor
those to whom estates are left. The
loss to beneficiaries under wills
where no provision has been made
for the proper care Of the estate
Of deceased person has been ire
mendous in the past and local trust
company officers point out that all
through placing the handling OF the
estate in the hands of a trust
company or a bank qualified TO
bring the highest business expert
ence into its management.
Writing upon the subject of CO
operation between life insurance
companies and trust companies in
Trust Companies. Edward A.
Woods says, Cooperation between
life underwriters and trust com
panies is not based upon senti
mental desire, but upon a clear
understanding that interests are
mutual Life underwriters aug
ment estates or provide immediate
cash often so necessary to conserve
or liQuidate them. Trust COM
panies conserve estates. Without
life insurance, or without sufficient
life insurance. estates would be
smaller, administration would be
more difficult and, in many cases.
liquidation would be impossible
without serious or total loss.
ut is obvious that the work OF
the life insurance company and the
trust company supplement each
other. Life insurance is taken for
q purpose. If it's service is not
fulfilled the real idea Of life insuf.
ance is not carried out, and IT viii
suffer in the long run. II it be-
comes known that the creation or
preservation of estates by life in
aurance results only in the estate.
including the insurance, being dissi-
pated, the business Of the life
underwater will naturally be hurt.
1t is obvious that the interests are
common.
Death Cuts All Estates.
Our survey of a large number Of
estates shows conclusively that death
always brings a substantial depreci.
alton in estates OF all sizes. and that
life insurance IS a certain and ideal
way of maintaining estates at par.
The analysis of the shrinkage, rang.
Ing from small estates at IS 900 to
large ones at 5000, 900, indicates
that administration expenses, debts.
and taxes may be depended upon to
reduce the gross inventory very sub
stantiaIly. 1t is significant that
smaller estates leave a relatively
larger amount Of cash than do larger
ones. Taxation on smaller estates
Is small or insignificant It is the
principal item N the larger estates.
Administration expenses. on the
other hand, are necessarily large In
and even then often Improbable To
the executor, but a very small part
of the shrinkage in. the large estate
In further sfressing the advantages
20 be derived from bank or crust
company management of estates. Mr..
Woods states that at various times
he has inserted in newspapers an
advertisement headed widow Has
$4,000 to Invest" He summarized
the numerous replies received to this
advertisement, and claimed that
most of them held glittering and
impossible promises In the hope of
quickly separating the woman from
her cash. He suggested that this
experience should make It fmpera.
tive upon holders of life insurance
policies to protect their loved ones
through trust agreement against
those who are preying upon the in.
experience Of beneficiaries.
Americans Under.Insured
One of the most startling state
rnents made by Mr.. Wood was to
the effect that the estimated CAPT.
tai value of American lives is
1910 600. 600. 900. against. which
there was only s42.281, 39O,527 life
insurance in force in 1920. In other
sured for only 80 per cent of their
capital value. He claimed that the
American public is beginning 70
realize that human life value ;s the
real capital Of the country. and
that the consistent growth of the
volume Of life insurance being
written results from a realization
Of this knowledge.
Commenting upon, the statements
Of Mr.. Wood. local bankers and
trust company officials stress the
great loss to beneficiariss through
improper or ignorant handling of
estates and contrast this with che
legal safeguards thrown around
estates managed by banks and
trust companies. 1t is couserVa.
lively estimated that many millions
Of dollars are saved annually to
widows and orphans through the
wisdom of placing the manage.