Sis Financial Group
February 14th, 2023
Forty-six years and seven husbands after inheriting her $40 Million Woolworth Fortune, Barbara Hutton died with a mere $3,000. Learning from her mistakes, you may better prepare your children and grandchildren for stable futures— both financially and emotionally.
At the age of 10, Barbara Hutton, granddaughter of F. W. Woolworth and niece of E. F. Hutton, inherited some $25 million. The money stayed in trust, managed by her stockbroker father, Frank (E. F. Hutton’s brother), until Barbara was 21. By the time the money became hers at age 21, the fortune had ballooned to some $40 million, thanks in part to Frank’s astute decision to sell out early enough in 1929 to miss the crash in October. After receiving the $40 million inheritance in 1933, Barbara gave her father $5 million as a thank-you gift for his management services. Then she embarked on the sad, lonely life of a socialite both envied and exploited for her money.
Keep in mind that although it may not sound like a lot, $40 million would be worth roughly $500 million today. And during the depths of the Great Depression, few Americans possessed such conspicuous wealth.
Barbara Hutton’s inheritance made headlines around the world. Suitors quickly lined up for the attentions of the “million-dollar baby”—even before she hit the magic age of 21.
When she was just nine, Barbara’s butler offered her some sage words of caution: “Someday, you may be the richest girl in the world, but all that means is that somebody will want to marry you for your money.” Ultimately, Barbara married seven times; the only husband who collected no alimony was actor Cary Grant. Each of her other husbands, after spending her money lavishly, managed to walk away with a substantial part of her fortune after the divorce. When she died in 1979, at the age of 66, her share of the Woolworth fortune had dwindled to a mere $3,000.
What could F. W. Woolworth have done differently to spare his granddaughter the misery of such relentless exploitation? And what could she herself have done to protect her assets from gold-digging husbands who charmed their way into her life, convincing her that they loved her and not simply her money? What lessons can we draw from her miserable life of spousal abuse, drug addiction, and outrageous spending?
How can you avoid the same mistakes F. W. Woolworth made when he set up his estate to allow his granddaughter to receive $40 million in cash and securities on the day she turned 21?
It’s hard to know how much of Barbara Hutton’s tragic life was caused by her early inheritance. Some, of course, may well be attributable to her sad family life—her cold father and nonexistent mother. But her story still can be useful to help spare children and grandchildren the irreversible damage caused by too much money at too early an age.
Sis Financial Group, Illinois
