Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-07-15
BY I. A. FLEMING.

BY I. A. FLEMING.
| Business men of this day and age
| as well as the public generally are rec
! ognizing the advantages of life insur-
ance and taking out more and larger
| policies than ever before. AS rule
business interests are larger and more
important and the need for protection
for the family is more closely con-
sidered
At the same time the propaganda of
banks and trust companies in the in
terest Of safe handling of estates
by capable institutions with perpetual
charters that have every possibility of
going on indefinitely, as against trust
ing friends and relatives unfamiliar
with the handling of large sums Of
money, liable to make serious mistakes,
even with the best of intentions. and
plumbers or worse, very frequently is
having effect.
Life insurance constitutes the bulk of
most mems estates and the chief de-
pendence of many widows and orphans.
Modern life insurance has found way
of providing assurance Of health or
cash payments in sickness to the relief
of distress: has made an employment
policy and provided annuity policies
that insure beneficiaries fixed sums an
nually without effort on the part of
the insured.
Small requests Dissipated.
According to the statistics compiled
by the National Association of Life IN
derwriters, fully 80 per cent of estates
of $4,000 and under, resulting from pay
ment of insurance. are diSsipated within
seven years. This is perhaps largely
due to the fact that large estates are
intrusted TO the care of competent
chartered trustees, while others are
more frequently administered by rela-
tive or friend-often the widow. who
knowing nothing of business. having
been content to let father attend to
such affairs during life. falls an easy
victim to questionable investments or
some other means of getting money
without return. An error of Judgment,
honestly made. may wipe out fortune.
Living Insurance Trust.
This is a form of service OF COM
paratively recent introduction by bank
ers. generally referred to as living
trust" Under its provisions the in
sured may make this or that bank or
trust company. II the former has the
right to accept trusts, executor of his
estate while yet he is in perfect health
and attending to his own affairs and
may make his policies payable to his
executor as trustee. He may delegate
authority to meet satisfactorily any
situation that may arise and broad ex-
perience assures conservation of every
dollar
In fact. the great advantage of any
service by trust company is found in
the great protection 1t brings to prop
erty interests and the combined abili-
ties Of the men who are specialists in
the management of estates and the
handling of large amounts of cash. The
work of these specialists covers the
gamut of business activities, real estate
specialists, security specialists, tax ex-
perts on all kinds of taxes, assessment
experts and. what is of equal impor-
lance, they have the advantage Of the
most able legal authorities.
Handling Millions of Dollars.
Some institutions that have been in
business for a considerable tine have
estates In their charge aggregating
many millions Of dollars--not infre-
quently hundreds of millions.
p Caring for such trust demands the
most important care and consideration.
Division of income is so varied, the
purposes for which the testator has de-
vised principal and income. either or
both, so varied; maturities of interest
and dividend payments to be cared for
maturing investments to be reinvested
and other matters constantly coming
up for consideration, create demands
on the staff OF trust company, which
they are prepared to care for, that
would be next to impossible for any
one less experienced to successfully
handle
Moreover, charters of national banks
are perpetual now and the trust com.
panies of today are also prepared to &c
dividual executor.
Charges for services by banks and
trust. companies are not fixed By the
institutions themselves, but arc named
by the court in which the will was pro-
bated and before which final returns
must be eventually made.
The Homemade WIN.
The will made at home, sans Legal
knowledge, Is loaded and dangerous In
that its provisions may be against the
law and that the will of the testator
may never be carried out. Often pro-
visions made cannot be carried out
Often wills of this character are brought
To trust officers with view of securing
an expert opinion and, nine times out Of
ten. the assurance OF the maker that
he had made his will for years, mayhap
has been entirely misplaced.
Trust companies take pleasure as dc
national banks with trust departments
In advising customers and the public In
general, as an accommodation.
Make Your Deduction.
The fiscal year Of all local banking
institutions ended with June 30 last
and gross earnings upon which banks
pay 4 per cent. II savings institutions
and per cent, II national banks OF
trust companies. are computed for that
year
Having won their contention that al
income from Liberty bonds Is exempt
from the gross earnings tax, this in.
terest will not be included in last years
statement.
The court decision is not retroactive
| unfortunately, but the savings for last
year are substantial while the apgre-
gate In the next few years will be very
| large
Bankers are indebted to the Riggs
| National for fighting the case to sue
! cessful conclusion.
| A Chance to Vote.
The District Bankers Association