Skip to content
Round Logo — Smalller size
Wills, Trusts, & Estates Prof Blog
Formerly Hosted by the Law Professor Blogs Network

The Pritzker Problem

By Gerry W. Beyer

The Pritzker family of Chicago continues to be involved in controversy regarding its $15 billion empire which includes the Hyatt hotel chain.

In Records Expose Schism in Chicago Family, NY Times, Jan. 11, 2006, Jodi Wilgoren and Jeff Bailey detail the situation.  Here are some of the estate planning issues which are raised by the “accusations of betrayal, self-dealing and conflicts of interest”:

  • Excess trustee compensation
  • Self-dealing by trustees
  • Trustees improperly allocated trust investments
  • Trustees failed to disclose material information
  • Trustees diverted assets away from the beneficiaries
  • Off-shore trusts
  • Charitable gifts

It is interesting to note that the current dispute arose at the funeral of one of the family members when survivors, rather than grieving for the deceased, began discussing their views toward updating the structure of the family enterprise.

Special thanks to Rita and Joseph Solomon Prof. William P. LaPiana of the New York Law School for bringing this situation to my attention.

Posted in:
Current Events, Trusts and Wills