In June 1910 my maternal grandmother was born Almira Burnham in Claresholm, Alberta. Many generations before her, an ancestor named Robert Burnham begat five sons. Some time in the 1660s, four of the adventure-seeking young men purportedly started out with a small fortune of their own and set off to far away regions of what was then an imperial world. John, Robert and Thomas came to America and settled in the Boston area, while Benjamin went to India. Edward, who was the eldest, and presumably heir to the family fortune, stayed put in England.
The juicy part of the story revolves around money, pride, and a lust for power. The sad part is centred on a bogus legal error costing my ancestors gazillions.
As legend has it, Benjamin Burnham faired rather well over the next 24 years in the area of Madras, India where he lived and thrived in some sort of trade business. He then amassed a great fortune in real estate, including property back in England, with some 150 acres in London, supposedly comprising a ?Burnham Road, now Regent Street, Burnham Beach Cottage and Burnham Wood.? Or so the story goes.
When Benjamin died in London England about 1691, his will of June 8, 1685 stated that everything would go to his three brothers in America. The oldest brother, Edward, was cut out of the will entirely. Some sort of brotherly feud is hinted at in the wording of the will, which is available online and reads in part as follows:
?I... purposely omit to leave any legacy to any of my other relatives, all of whom I remember, for good and sufficient reasons which are known to myself, but which I do not wish here to
make public, wishing them to die with me.
I purposely omit to appoint an executor, leaving same to the proper court before whom this will may be proved.?
In other words: ?After I die, please sue me. Toodle-oo!?
Estimates suggest an outrageous estate value, which is no-doubt hyper-inflated by magic of exponential rumour mathematics. Values of something between $20 million and $65 million in 1860 dollars are thrown around like fishing tales around a boy-scout campfire.
Whatever the value, the written-out brother (Edward) was said to have been duly enraged. Being a man of substantial means himself, he fought the will in English courts. After a long legal battle in the courts, (still very much the domain of His Majesty the King) the British Crown was said to have grown impatient and simply confiscated the entire estate. The Burnhams never regained their fortune, which is why I drive a Honda and pack a bag lunch to work every day.
Reports say that over the next 100 to 250 years, several Burnhams in America would make the long journey to England to contest the taking over of the estate, but were not successful.
Never mind the fact that the entire story fails the smell test, and was arguably proven false in subsequent investigation, there are still useful lessons for high net worth families in this saga, such as:
1) My ancestor had advisors, but he was ill-advised.
Families of substantial net worth should consider it essential to hire an estate lawyer and a high net worth estate planner. Don?t cheap out on your life?s fortune, or leave its destiny scrolled on a home-spun parchment. That would be like climbing Everest, and snapping a picture of yourself at the summit, then balking at the cost of developing the film.
2) Beware how and where you cast your pearls.
Any financial firm of substance should have a dedicated team of processionals falling all over high-net worth families as a matter of business necessity - a complimentary service thrown in for the good graces of their most valued clientele. These firms (including my own) manage wealth for the very affluent, and help ensure their long-term inter-generational wishes are strictly adhered to;
3) Be nice to your little brother. You never know...
Mark Ryan is an advisor with RBC Wealth Management, Dominion Securities (member CIPF), and can be reached at mark.ryan@rbc.com.
