What Can We Learn From Benjamin Franklin? Exploring His Lasting Legacy

Less than a year before his death on April 17, 1790, Benjamin Franklin amended his last will to create terms for a trust (a testamentary trust for all you trust nerds) leaving 1000 pounds sterling, the equivalent of $4K, to his two favorite cities, Boston and Philadelphia.

Franklin’s Vision:

A former printer, Franklin directed that for the first 100 years, the assets would accrue interest and be used to fund loans for young tradesmen starting out in business. At the end of the 100 years, the cities could invest 75% of the principal and spend it in public works and the remaining 25% percent would remain in trust for ANOTHER 100 YEARS, at which point the cities could spend the funds on whatever they wanted. (This guy takes reaching from the grave to a whole new level!!)

First Century Utilization:

For the first 100 years, the funds were used to subsidize apprentices hoping to launch their skilled trade per Franklin’s specific requirements. As expected, the trust rules were loosened as the years went on to make more sense for the times.

Philadelphia’s Progress:

At the end of the first 100 years, in 1879, Philadelphia’s investments had left them with a total of $70,800 and the city opened a museum named the Franklin Institute. (Awww, that’s nice!)

Boston’s Battle:

Boston, on the other hand, was sitting on $327,799.45 and a fight. From 1890 to 1904, no one could agree on how to spend the money, and accusations of misappropriated funds were just the icing on the cake. A state court took over the money and Beantown got it together. The Benjamin Franklin Institute of Technology opened in 1908 and eventually became a two-year technical school. (We have 100 more years to go in this story folks!)

Second Century Outcomes:

Over the next 100 years, the trust provided more than 7K medical students with loans.

Philadelphia’s Decisions:

As the second century of Franklin’s trust drew to a close, Philadelphia’s trust was worth $2M and the city held civilized discussions and a committee appointed by the Mayor decided that roughly $520K would be used for grants for high school students looking to learn a trade, and $1.5M to the existing Franklin Institute museum.

Boston’s Controversy:

Boston’s trust fund was worth $4.5M and along with arguing over the use of the funds, the trust was faced with a claim. In 1990, The Benjamin Franklin Institute of Technology (you remember them from 100 years ago? Greedy little guys!) argued that they were owed the $4.5M due to a 1958 law that terminated the trust and gave it over to the school. It turns out that the Governor and the State Legislature terminated the trust prematurely and awarded the remaining trust to the Franklin Institute. The state’s Supreme Court ruled that the trust couldn’t end prematurely but in the end, the school was awarded the $4.5M in 1994. Thus brings our Franklin trust saga to an end.

Franklin’s Reflections: 

Franklin seemed to get the potential conflict with his plan and included in his last will, “Considering the accidents to which all human Affairs and Projects are subject in such a length of Time, I have perhaps too much flattered myself with a vain Fancy that these Dispositions will be continued without interruption and have the Effects proposed.”

Thank you for joining me on this journey, I’m a bit exhausted LOL A figure in history, Franklin put a plan to test for us to discuss.