Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-14
INSURANCE TRUST
METHODS PICTURED
Underwriters and Bankers
Hear New York FinanCier
Plead for Cooperation.

Closer cooperation between bankers
and insurance men in connection with
the growing interest in insurance was
urged at meeting Of the District IN
derwriters' Association last night in
the National Press Building, many local
bankers being present by special invi-
tation.
Walter E. Roberts of the Equitable
Trust Co. of New York was the guest
speaker. He declared that estate or
ganization is the best method of de-
veloping the insurance and trust busi-
ness and presented slides showing a
very carefully worked out scheme by
which this can best be done.
In discussing Life Insurance Trusts"
he made it clear that in developing the
organization of estates idea there are
three major interests vitality involved:
The client who wants his estate prob
lens solved; the life underwater who
is willing to earn commissions on the
new business secured and the old bust
ness retained. and the trust company
which is willing to earn standard fees
by rendering adequate flduciary serv-
ice.
Three Leading Interests Served.
1--WE may conclude said Mr.. Roberts,
"that if the solution of the clients
problem is our primary aim, all three
interests will be properly served" After
giving further attention to the estate
problem, the speaker listed eight special
needs for life insurance as follows:
ITO guarantee financial independence,
to retire current estate liabilities, to
retire deferred estate liabilities, TO
cover contingent estate liabilities, to in
dsmnify business against loss of key
lives, to supply family income require
nents. to hquidate closely held business
interests and to indemnify the family
against the loss of income"
Turning from specific estate analysis
to what happens to estates of various
sizes. Roberts explained:
We have discovered that the aver
age estate ShrinkS by about 1920 per
cent of its value. In other words. your
client may reasonably expect that out
of every 1000 of property he expects
to leave to his family they will receive
perhaps less than $500. Much of the
shrinkage of capital and revenue IS
caused by wills and trust agreements,
which may be as out of date as the old
fashioned carriage
As Banker Sees Problem.
Quoting Winthrop w. Aldrich, presi-
dent of his company, Mr. Roberts said
more than so years experience in estate
management has taught the organiza-
Cion that for creation of an immediate
estate no better method than life in
surance has yet been devised for men
DESTROYS of discharging financial and
moral obligations to family and society.
Life insurance, he concluded, replaces
he economic value of the estate opera
lion and modern trust service replaces
he managerial ability of his family to
he estate creator; in other words. life
assurances primary function is to
-urnish money and the true functionsof
modern trust service is to supply money
management.
Mr.. Roberts pictures were highly in
'eiroLing and revealed a large amount
~ research on the subject. The example
AIKEN presented the facts about an
estate OF S475,000. To many the figures
ieemed somewhat large to apply to the
average estate in Washington. How
HVer. the problem is much the same to
le applied to smaller estates and the
peaker made special mention of the
ACT that the New York banks do not
care to handle estates of less than
100000.
President Harold D. Kraft of the
district Underwriters Association pre-
'ioed and introduced several other
peakers. David NJ Houston, chairman
7 the flduciary section of the District
Sankers Association, said that his
banking group is cooperating so far
S possible with the insurance men in
developing the trust idea. Another
7peaker- was T. Stanley Holland, who
IS chairman of the local bankers as
;oclatlon'S insurance committee. ex-
pressed his views of the situation.
while H. Cochran Fisher, vice presi-
lent of the underwriters association.
outlined the main reasons why insur-
ance men should be particularly inter-
csted in insurance trusts.
The dinner meeting was one of the
argest the insurance men have held
mere for a long time. 1t took place in
Ghe main ball room of the National
Press Club, several vocal selections and
amos and Andy adding to the gaiety
Of the occasion