What would you do if you amassed a fortune? Assume for a moment that you sufficiently provided for your family and friends and wanted to use it for some kind of a meaningful good. Would you donate it to the Humane Society? Local animal shelter? Cancer research, perhaps?
Well, one of England’s richest women, Doreen Lofthouse, decided that her money was best spent refurbishing her hometown Fleetwood, a small coastal town of 25,939 people, located in Lancashire, England.
Doreen’s fortune came from popularizing “Fishermen’s Friend“, a brand of strong menthol lozenges. Fishermen’s Friend was originally developed by James Lofthouse, a pharmacist, in 1865 to relieve various respiratory problems suffered by fishermen working in the extreme conditions of the northern deep sea fishing grounds. However, it wasn’t until Doreen married James’ grandson, Tony, that the company became a global phenomenon. Doreen transformed Fisherman’s Friend from a Lancashire dock-based firm into an international powerhouse sold across 120 countries. The product became so popular that it was said British Prime Minister, Margaret Thatcher, used the product when her throat became strained from public speaking. Oh and the French President, Emmanuel Macron, is known to use them too.
Newspapers around the world reported that Doreen “donated her fortune to her seaport town“. While it’s technically true, it’s not entirely accurate either. Doreen actually left her gift – over $56 million – to a charity named Lofthouse Foundation in her Will. Lofthouse Foundation was originally set up in 1994 by Doreen and her family for the purpose of refurbishing her hometown, Fleetwood. Certainly, Doreen could have avoided the headache of setting up a charity and instead donated the money directly to her hometown. However, Doreen clearly decided against simply handing the money over to the local elected officials. Donating her fortune to Lofthouse Foundation allowed Doreen, or the directors currently in charge of the charity, to have influence over how the money will be spent in the future. While we have no reason to doubt that the funds will be generously used for the benefit of Fleetwood, those decisions will be up to the directors of the charity, most likely acting under Doreen’s wishes.
So, have you decided by now what you want to do with your fortune after you’re gone? It’s up to you to decide where your fortune should go. But leave it up to your trusted advisor to help you plan for it.