Do Trust Funds Do More Harm Than Good?

By Alice Tao '24

As the son of fashion mogul Gloria Vanderbilt, Anderson Cooper seemed to understand the value of money. With an estimated net worth of $200 million, the successful journalist admitted that his mother made it clear to him that there’s no trust fund. It is common in various work fields that nepotism has become a large topic of debate. So, how is Anderson Cooper, world’s most renowned journalist, different from other trust-fund babies?

In 2021, various articles surfaced with the claim that Cooper will not leave his fortune to his son, Wyatt Cooper. It is shocking, to say the least, that such an affluent figure chose not to inherit the “pot of gold”. But, what is Cooper’s reasoning behind this seemingly “irrational” decision?
 
During an interview with Howard Stern in 2014, Cooper stated that, “I think it’s a curse… From the time I was growing up, if I felt like there was some pot of gold waiting for me, I don’t know if I would have been so motivated." Indeed, Cooper believes that large inheritances kill a person’s drive to succeed. He expressed his philosophy that too much wealth can squelch a child’s desire to contribute something to this world. It is fascinating to wonder whether Cooper would have the work ethic to build a glorious career if Gloria Vanderbuilt raised him as a trust-fund baby.
 
So, do trust funds do more harm than good?
 
When you think of trust-fund babies, names like Khloe Kardashian, Paris Hilton and Brooklyn Beckham come to mind. This term describes individuals who depend on their family’s money without needing hard work.
 
After graduating from Dalton at age 17, Cooper traveled across Africa for a “survival trip” and contracted malaria. He described Africa as “a place to forget and be forgotten in."  Needless to say, Cooper was not spoiled with heavenly palaces and he believes that is what gave him the motivation to succeed.
 
On April 30, 2020, Cooper announced the birth of his son Wyatt Morgan Cooper by a surrogate on April 27. Not long after, Cooper declared that he won't leave his son an inheritance.
 
Whether or not Wyatt Cooper will benefit from this humble ideology, we will find out soon …