- Investor and philanthropist Richard C. Blum, husband of Sen. Dianne Feinstein, died Feb. 27, 2022 at 86 after a long battle with cancer.
- He led Blum Capital Partners, served nearly two decades as a UC Regent, and backed major initiatives including the American Himalayan Foundation and UC Berkeley’s Blum Center.
- After his death, Feinstein petitioned to replace trustees of Blum’s 1996 marital trust and seek reimbursements for medical expenses, alleging improper appointments and unclear trust terms.
- The marital trust is disclosed at about $1–5 million, while trustees dispute wrongdoing and cite asset complexity and liquidity constraints.
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Richard Blum’s passing in early 2022 closed the career of a figure who straddled the worlds of high finance, political influence, and international philanthropy. Key facts—his investment achievements, educational pedigree, and deep involvement with global causes—are well documented and largely uncontested. What has emerged more recently, however, are complex legal and financial issues tied to trust documents and estate management, with strategic implications for all parties involved.
Legacy and influence
The arc of Blum’s life—from Sutro & Co. partnership to founding Blum Capital in 1975—solidified his reputation as a savvy investor who built significant influence in academia and philanthropy. His role as UC Regent, philanthropic foundations, and global humanitarian work (especially in the Himalayas) have created structures that remain active after his death, providing both his wife and broader community with a durable legacy.
Post-death legal disputes
Senator Feinstein has recently petitioned the court to obtain greater control over the 1996 marital trust established by Blum, seeking reimbursement for medical expenses she says go unpaid. Key allegations: the trustees were improperly appointed; the trust itself does not clearly name them, nor comply with its own terms. The petition places the trust’s value at US$1-5 million.
Financial strength and risks
Feinstein’s net worth is significantly larger when factoring in real estate, publicly disclosed assets, and other trusts—OpenSecrets estimated around US$120 million in 2018. While the Blum trust represents only a fraction of that, the legal conflict could expose reputational risks for trustees, family members, and any institution held in the public eye. Moreover, the timeline of distributions, valuations, and obligations under the trust will be central to court determinations.
Strategic implications and open questions
• Control of family assets: If Katherine Feinstein succeeds in becoming successor trustee, she would gain significant power over trust assets, affecting distributions and legacy control.
• Precedent for oversight: Given Sen. Feinstein’s position, court rulings might attract public scrutiny, setting precedent for how surviving spouses and stepchildren handle trust estates when statements of intent are vague.
• Funding of medical expenses: The trust document’s specifics—whether Payne provisions for distributions or only on certain conditions—will determine whether Feinstein’s request succeeds.
• Liquidity of trust: The trustees have claimed lack of immediate liquidity in Blum’s holdings and the need to resolve complex asset valuations. Whether that is factually true is central to the case.
In sum, the facts of Blum’s life are well-established; what remains under dispute are legal technicalities, trustee actions, and trust interpretations, especially regarding Sen. Feinstein’s medical bills and control over her husband’s post-mortem financial arrangements.
Supporting Notes
- Richard Blum died February 27, 2022, aged 86, at his San Francisco home, following a long battle with cancer.
- He served for nearly two decades on the UC Board of Regents, was chairman emeritus, and founded the Blum Center for Developing Economies at UC Berkeley.
- He founded the American Himalayan Foundation and was longtime friend of the Dalai Lama; his philanthropy focused on healthcare, elders and children, and anti-trafficking in Himalayas.
- Feinstein has filed a court petition asserting trustees of the 1996 marital trust were improperly appointed and refusing medical expense reimbursements; seeking Katherine Feinstein as successor trustee.
- The trust is valued between US$1-5 million per disclosures; Feinstein’s net worth (outside trust) estimated at about US$120 million as of 2018.
- Trustees responded that they had not denied payment, claimed compliance, pointed to high assets’ asset complexity and tax issues affecting liquidity.