The professor put his hands behind his back and began to walk in front of the table at which the boy was sitting.
"Your somewhat-great-grandfather, the first Duke of Westminster, received a vast estate along with his title. Like all aristocrats of his stature, he lived off the land rents, but unlike other dukes, he began investing the profits in purchasing new land and constructing buildings, which he rented out. His children continued the tradition."
Richie listened attentively, taking in every word the lecturer said. The professor continued to pace back and forth and speak:
- Subsequent generations of Richs continued the tradition of investing in land acquisitions and construction. Your grandfather, Charles, was particularly active in this regard. He began acquiring land not only in the UK, but also in Canada, the US, Australia, and other countries. He was arguably the greatest contributor to the Rich family's financial fortune. In the 1950s and 1960s, your family was wealthier than the royals.
The professor changed his trajectory and began pacing back and forth between his desk and the blackboard. He continued his story:
"In the 1950s, the numerous children of the fifth Duke of Westminster-your grandfather Charles-began to live a dissolute life. They spent insane amounts of money on all sorts of nonsense. This threatened to ruin the family."
Richie held his breath. There was genuine curiosity in the boy's eyes.
During his lifetime, Carl Rich still restrained his children's urges to squander their fortune. But he understood perfectly well that after his death, everything his ancestors and he himself had earned would be wasted. Therefore, he decided to follow the example of the Rothschilds and create a trust fund.
Richie tried to remember what a trust fund was, but nothing came to mind. So he decided to ask directly:
- Sir, a trust fund... What does that mean?
"Oh, I'm just glad you've come to your senses, Richard," the professor paused and shook his head in displeasure, looking reproachfully at the boy. "A trust fund is a system in which the property originally owned by the founder is transferred to the trustee, but the income from it goes to the beneficiaries."
"So, Grandpa left our property to a trust fund?" Richie asked.
"Yes," the professor nodded. "In the late fifties, the Richs placed their assets in several trusts to prevent their property from being squandered by heirs, ex-wives, and other black sheep."
The professor stepped away from the board and approached his desk. He rested his hands on the tabletop and continued:
"The Rich strategy allows you to make a profit, but if, for example, you, Richard, were to inherit and suddenly wanted to sell even a small asset, like a shopping center in the heart of London, you wouldn't be able to do so without the approval of the board of trustees. There are currently seven of them, including the sixth Duke of Westminster-your father. The head of the board of trustees is Mark Preston-an excellent economist, a nobleman, an honest man, and a strong manager."
"Wait, so what does that mean? I can't spend my money without the board of trustees' approval?" Richie's eyes widened.
"No, you can spend your money. You'll receive a substantial quarterly payment from the trust fund's income. That's millions of pounds. But you won't be able to sell the property. And, for example, if you suddenly have an unhappy marriage to a gold-digger, then get divorced, and your wife sues you for part of the property, she won't be able to sell it. Although, as far as I know, the Richs always entered into prenuptial agreements, under which a wife cannot claim her husband's property in the event of a divorce. The most the children could receive, as in the case of your father's ex-wife, would be annual payments from the trust fund."
"My father has an ex-wife and other children?" Richie asked, surprised.
"Hm," the professor drawled. He didn't know what was going on inside the Duke's family, so he didn't find the boy's question odd. "As far as I understand from publicly available sources, Richard, you have two older sisters from your father's first marriage. The younger one is about twenty years old. Both girls receive an alimony, the amount of which is not publicly disclosed, and payments will continue until their deaths. These payments will likely be inherited by their children, presumably in equal shares, unless your father decides otherwise, since by law he is only obligated to support his children until they are eighteen. I don't know exactly what your father wrote in his will. Besides your sisters, other Richs receive payments from the trust fund, such as your father's siblings and their children. Perhaps more distant relatives, for example, the children of Charles Rich's siblings, also receive some payments." You, as the future seventh Duke of Westminster, will inherit the entire Rich fortune and receive the majority of payments from the fund.
"How big is that fortune?" Richie asked. "You were talking about land and a shopping center in London."
"As far as I know, it's over a thousand properties in sixty countries," the professor replied. "Richard, you understand I can't give you a definitive answer; only someone on the board of trustees of the Rich Group, like your father, could. But I do know that you own virtually all the property in central London and Liverpool. For example, the Mayfair district, including the US Embassy, the Beau Monde Hotel, art galleries and museums. Your family owns around forty thousand hectares of land in Scotland, almost all of Silicon Valley, thirty thousand hectares in Spain, and much more."
Richie whistled in amazement and exclaimed:
- Wow! I'm fucking rich! Is there any country, just by chance, that doesn't belong to our family?!
"If it does, I don't know about it," the professor laughed quietly, watching the boy's reaction.