I am Hollywood

[Chapter 1061: What Does Your Family Plan to Do?]

In the evening, a black stretch Cadillac slowly came to a stop within the 20th Century Fox lot. The car had a peculiar design, resembling a sleek sedan at the front, extending in the middle, and ending with a square-shaped back that gave off the impression of a lizard with a broken tail. The driver got out and opened the door. Only then did Elisabeth, who stood outside the office building explaining something to her assistant, realize it was Eric's ride. She quickly walked over and hopped inside the car.

Once the driver closed the door, Elisabeth remarked, "Why are you suddenly driving this car? It looks so ugly!"

Eric pressed a stack of papers onto his knees and replied, "It's Drew's choice. She said it was a birthday gift for me. You have to take a limo to a premiere, right? So I guess this is the only option I had."

As the car slowly started up, Elisabeth, a bit dazed, asked, "Is your birthday this month?"

Eric shook his head. "No, it's not."

Elisabeth pressed on, "Then what birthday gift did she give you?"

Eric shrugged. "How would I know? Based on the frequency with which she gives me birthday gifts, I should be about 280 years old by now."

Elisabeth burst out laughing and teased, "It's all your fault. You spoil her, letting her run wild and have such terrible taste to buy such an ugly car."

Eric laughed, "Don't let its looks fool you. It's worth quite a bit. I heard it's the next-generation presidential vehicle designed exclusively for the White House, and Clinton hasn't even gotten to use one yet."

"Still ugly," Elisabeth said, her smile still bright as she caught sight of the papers in Eric's hand. She curiously leaned closer and asked, "What's this? Hmm, Ford Foundation?"

Eric passed the papers to her, saying, "I've been looking into some family foundations recently."

Elisabeth flipped through the pages casually, a teasing smile creeping onto her face as she said, "So, you're beginning to plan for the future?"

"Yeah," Eric leaned back in his seat, crossing his legs. "I've recently come to realize that some things can't be ignored. I used to be pretty opposed to the idea of foundations, but now I see that it's truly the best way to pass down family wealth."

After reading a series of documents over the past few days, Eric realized that family foundations operated very differently from how he originally perceived them.

Take the Ford Foundation, for example. When it was first established, the Ford Foundation had only $25,000 in registered funds. Even after Henry Ford passed and his entire estate was poured into the foundation, the asset scale didn't exceed $2 billion. Yet now, the Ford Foundation's asset scale has reached $9 billion.

If inflation is disregarded, this essentially means that the Ford family's assets have been consistently on the rise. Moreover, the family's legacy model can largely avoid the inheritance tax issues their descendants would otherwise face.

Even more astonishing is that even after a century, the Ford family still controls the Ford Motor Company, valued in the hundreds of billions, thanks to their remaining 2% stake in it under the dual-class share structure. This control allows the Ford family to maintain a significant, albeit subtle, influence on society.

Beyond the Ford family, both the Carnegie Foundation and the Rockefeller Foundation have similarly outperformed the initial legacies left by their founders in terms of asset control. Though their immense wealth might not rank them on the Forbes rich list, it sufficed to uphold their ancestors' legacies and societal standing.

As for Eric's initial concern about control, that wasn't an issue either.

In all the family foundations Eric reviewed, control remained firmly in the hands of the founding family. Although they labeled themselves as nonprofit public foundations, they still had to donate a certain amount of assets each year. However, the operation of these donations was quite intricate.

Suppose a foundation had to donate $100 million each year; it might seem like a significant outflow of cash. In reality, how that money was spent was still up to the founding family that controlled the foundation.

Whether it's the Ford Foundation, Carnegie Foundation, or Rockefeller Foundation, their stated mission upon establishment was to promote developments in education, technology, and healthcare. This essentially meant they had made no binding commitments, providing the foundations with ample flexibility.

For instance, if a family business sought favorable policies from the government, they could allocate funds from their foundation to sponsor a voting-representative congressman on certain "beneficial tech industry" exploratory projects. A family trip to Hawaii or the Bahamas could conveniently fit into that narrative. And even if anyone spotted the ruse, there was no way to accuse the foundation of wrongdoing since it was a nonprofit endeavor entirely compliant with federal law.

Conversely, if family heirs struggled academically and couldn't gain admission to elite schools like Harvard or Yale -- schools that meant more to them than merely gaining knowledge -- then they wouldn't stand a chance. Thus, the family could pull funds from the foundation to make donations to these institutions, promoting "the development of the education sector." Along the way, it would be a dilemma for their children when it came to college; do you accept it or not?

These examples were, in fact, only the more ceremonial methods of operation, while many other private maneuvers were even more elaborate.

Overall, the donations made by these foundations carried strong ulterior purposes, primarily for the benefit of their controlling family. Genuine philanthropic acts were remarkably rare.

Take, for instance, the Bill and Melinda Gates Foundation, which everyone recognized from the original timeline. While everyone saw their net worth skyrocketing, aside from contributing a million dollars to develop the new contraceptives for "human population control," no other well-known philanthropic initiatives came to light.

Most importantly, utilizing the foundation model for family wealth transfer maximized family cohesion. To enjoy the foundation's support in the long term, the younger generation needed to exert some effort to promote the foundation's growth, which fundamentally explained why families like the Rockefellers, Carnegies, and Fords successfully maintained their legacies for over a century.

In contrast, if they opted for conventional property inheritance modes, not only would high estate taxes inevitably damage the family's essence, even if the second generation managed to maintain prosperity, the third or fourth generation might not share the same capabilities or might face uneven distribution or other reasons. So, the family would inevitably find itself on a path toward disintegration and decline.

Inside the car, Elisabeth listened to Eric's remarks, her face revealing a mischievous yet slightly resentful expression. "So, Mr. Williams, while considering these matters, have you thought about where your family stands?"

Eric coughed awkwardly to divert the topic, "So, what does your family plan to do?"

Elisabeth shrugged but replied, "My dad plans to use a trust fund."

Eric recalled the materials he had recently read. "Well, there should still be taxes to pay, right?"

Elisabeth nodded. "Yeah, but it should be manageable around 15%. By then, with some adjustments within News Corp, we probably won't need to sell stocks to cover the taxes; we're not as big as yours. Speaking of which, with your personal wealth being so substantial, the IRS is surely going to keep a close watch on you. It will be quite a challenge to smoothly transfer your assets without paying taxes like other families do."

Eric replied lightly, "The IRS is still human-controlled. As long as they're not machines, it should be manageable."

As they talked, the car started for Hollywood's Santa Monica Boulevard.

...

Today marked the premiere of The Horse Whisperer, produced by Miramax. The film was set to hit theaters on November 6, just two days away.

As Miramax's largest investment to date, the Weinsteins placed considerable emphasis on this project. However, selecting the November 6 release date was part of their usual distribution strategy as well as a concession to circumstance.

"Starting next week, two new films will be released on average every week, not to mention heavy-hitters like Mission: Impossible 3 and Star Wars: Episode I," Elisabeth explained. "Harvey had no choice but to pick this date. While there's risk involved, it's also the safest distribution strategy."

Speaking of which, Elisabeth added, "Columbia's two films have an interesting release schedule. Urban Legend opens on November 13, right alongside Ted and Star Trek: Insurrection. Julia's movie, Stepmom, is scheduled right after Star Wars: Episode I, and everybody can see that the box office for Star Wars: Episode I in the first two weeks is destined to be phenomenal. Even The Fast and The Furious has been pushed to January 1 next year while Stepmom stubbornly stays on Christmas Day. I can already visualize a tank crushing a bicycle."

Eric sighed, "There's not much I could do. By the time I got Columbia involved, their schedule was already set. Plus, the costs of these two films are infuriating; Urban Legend cost $30 million, and Stepmom cost $50 million. I can't help but think both budgets could be halved. I was almost tempted to drag Julia over and demand she return half of her $20 million paycheck for this family-friendly comedy featuring two female leads. It's highway robbery!"

"She's returning from Paris the day after tomorrow. When she's back, you can just hold her down and give her a punch," Elisabeth quipped.

"That would be too kind," Eric joked, cracking his knuckles in mock intensity. "I'd say at least two punches!"

With a laugh, Elisabeth recalled another topic and asked, "When do you plan to head to London?"

The fifth Victoria's Secret Fashion Show was approaching, and to promote the brand in Europe, this year's show was set to take place in London. Because this was a relatively important show, Eric had confirmed his attendance.

"Probably on the 10th," Eric replied. "The show is on the 12th, so I'll be there two days early, but I have to return early since there's still so much going on here."

"Hmph," Elisabeth suddenly scoffed playfully. "You can't wait to get back, huh, jealous daddy? With so many beautiful daughters around."

Eric chuckled and lifted Elisabeth's chin to plant a kiss on her lips. "How about you come along with me, and I can let them call you jealous mommy?"

Elisabeth pushed Eric's hand away, her face flushing. "Ah!"

...

The car arrived in front of a theater on Santa Monica Boulevard, where the premiere of The Horse Whisperer was taking place at a flagship cinema owned by the largest North American theater chain, Regal Entertainment.

At the moment, the area on either side of the red carpet was already packed with reporters and fans. It was likely that some heavyweight guests were currently walking down the red carpet since cheers erupted even before they entered the venue.

Under the guidance of the staff, the Cadillac paused briefly before entering the red carpet's entrance. Eric was the first to step out, moving around to link arms with Elisabeth, and together they stepped onto the red carpet.

Compared to the glamorous attire of other stars, both Eric and Elisabeth looked quite casual. Eric wore a standard black suit, while Elisabeth donned a simple water-blue form-fitting gown. However, their appearance attracted more excitement than any other guest present.

Due to the ongoing discussions about Eric, the audience's cheer was deafening, and not only were the fans shouting, but the reporters on either side of the carpet appeared incredibly energized, wildly clicking their cameras while shouting questions. If it weren't for the security managing to maintain order, the reporters would have charged straight through the barriers to reach them.

Unfazed, Eric and Elisabeth strolled past the red carpet and entered the theater.

In recent years, Eric had been intentionally bringing different women into the public eye with him. Although he never officially explained anything, many people gradually accepted the fact that he had multiple girlfriends, which was precisely the result he aimed to achieve.

...

The Weinsteins had a considerable network built over the years. As they reached the theater lobby, it was already brimming with guests from every direction, all engaged in lively discussions. When Eric and Elisabeth appeared, they were immediately surrounded.

After exchanging pleasantries, Elisabeth was pulled aside by Harvey Weinstein to discuss matters. Eric briefly chatted with the film's director, Robert Redford, and was just about to walk over to Elisabeth when a blonde girl in a white dress approached him. "Mr. Williams, it's so lovely to see you again! Do you remember me?"

"Of course," Eric replied with a smile, nodding. "You're that friend of Miranda's, Scarlett Johansson, right? You look stunning today."

"Thanks," Scarlett said bashfully. "Mr. Williams, I also want to thank you for helping me get that role."

Eric shook his head. "No need for that. Honestly, I didn't do much; it's really all on your impressive performance."

Scarlett was thrilled to finally have a chance to chat with Eric, but just as she was about to say more, Elisabeth and Harvey walked back toward Eric. She had to abandon the topic, politely greeting both before regretfully walking away.

"Talented young lady," Harvey commented as he watched Scarlett leave, then turned to Eric, "Come on, let's head in. The premiere is about to start."

Eric nodded, feeling Elisabeth naturally link her arm with his, though he also felt a flash of pain shooting through his arm. He helplessly remarked, "I didn't do anything. It was just to help the little girl."

Elisabeth shot him a disdainful look. "You clearly like young girls."

"That's slander," Eric replied.

"What did Drew say?"

"Fine, I give up. Let's change the subject."

*****

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