In my professional career I worked as an investment manager with a large regional bank. My clients included both trusts and individuals, and my job was to try to meet their financial goals, balancing potential risks and returns.
A trust is a document, not a human, but it has its own legal identity and ownership of assets and liabilities. The document specifies, in particular, who receives benefits from the assets owned by the trust, and what those benefits will be. In days past, trusts also often specified exactly what assets could be used. For example, it might say that particular farm property had to be held, or that only stocks and bonds could be used.
One trust with which I worked said that gold coins had to be owned by the trust, as well as financial assets. The coins had belonged to the person (human) who had set up the trust. When that person died, the coins transferred in ownership from the human to the trust.
That same trust also said the beneficiary would receive any income generated by the trust. For example, if farm property is held, the farm creates cash flow, and the net income would go to the beneficiary. With stocks, the dividend stream would create income. And with bonds, interest earned would do so.
Think for a moment: what income do coins generate? I suppose if they were rare enough, someone might pay to see them, as in a museum. But they were not. They were just gold coins, and they generated no income.
Now consider, the coins could never be sold because the document said they had to be held, so it didn’t matter what the price of gold was in the market. The coins would never go to market. And the beneficiary could only receive income, but the coins would not generate income. What value, really, was there in the coins?
No more value than pet rocks.
What gold are you keeping hidden, never to be used or appreciated? Your quilting stash, if purchased new in the U.S. today, would go for about $10-15 a yard. Overseas it may be substantially more. Does your “trust” hold a hundred yards? That would be a fairly modest stash, by many standards. A thousand yards?
You could measure it using a simple estimate. Quilting fabric weighs a little more than a quarter pound per yard. In other words, there are about three to four yards per pound. The photo above shows about fifteen yards of my stash, by that measure. Eyeballing it, I might have 400 yards of stash in total. And mine is small…
Each pound, then, might have a value of about $40-60 in the U.S. Perhaps not the value of gold on the market. But there is value, if…
Do you use it? Do you get the benefit of it? Or do you still go buy new, at $13 a yard, rather than shop the stash?
Is your stash worth the same as the gold held by that trust? If you don’t use it, you don’t enjoy cutting it, crafting it, or giving it to someone who will love it. If you do not use it, it has no value.
Use your stash. Shop your stash first. Enjoy the discovery of fabrics you already love. Challenge your creativity by finding pieces that will work, even if they aren’t what you had in mind. Make sure your stash has value, at least the value you paid for it. Otherwise it’s worth its weight in gold, the gold owned by that trust.