Much as been written about the Kennedy family with its famous highs and tragic lows. Its patriarch, Joseph P. Kennedy Sr., is no exception. Whether you’re a Kennedy family loyalist or not, Democrat or a Republican, one thing is certain: Kennedy was a planner.


Photo from Wikipedia

While his estate plan remains private per his emphatic wishes, the very fact that it has remained within the walls of the Kennedy family for generations makes it safe to speculate that Kennedy set up trusts. And like most things involving the Kennedy family, the origins of these trusts have achieved somewhat mythological proportions.

It is said that Kennedy and his wife, Rose, traveled to a New York law firm to do an estate plan. His main requirements went something like this:

1. He didn’t want his children and grandchildren to pay more taxes than necessary.
2. He wanted Kennedy money to always remain within Kennedy family lines.
3. He wanted to protect his children and grandchildren from being sued for the money he left them.

The best way to accomplish these requirements was to set up trusts. While preventing an unnecessary amount of taxation is standard practice, history has allowed us to further speculate on how these trusts may have been structured to follow through on his other two mandates.

For instance, after JFK’s assassination, his wealth remained in trusts for Caroline and John Jr. rather than going to Jacqueline. That means the trust did not recognize spouses as the primary beneficiary, ensuring Kennedy money remained with Kennedy descendents vs. in-laws.

After the infamous Chappaquiddick incident, Ted Kennedy could have been sued for the wrongful death of Mary Jo Kopechne, yet his wealth was protected by the trusts and the Kopechne family couldn’t touch it, despite his recognized guilt. Even when he divorced in the 1980’s, Joan Kennedy accepted a settlement vs. fighting to gain a more substantive amount. All things considered, it may have simply been a waste of her time and money.

While the majority of the people out there don’t have Kennedy wealth, everyone is capable of setting up Kennedy-level wealth protection. All you need to do is plan. And it’s not about protecting people from any potential vices and irresponsibility. Joe Sr. certainly wasn’t planning for that as he set up his plan. Rather, it’s about protecting your children against whatever negative events and unscrupulous people that may come their way. 

After all, family looking after family is what great estate planning is all about.