Understanding Mansion Building for the Super-Rich and a Visit to the Biltmore Estates
- Charles Reams
- May 1
- 6 min read
The Tale of the Vanderbilt house and estate can best be understood within the context of the four Vanderbilt generations.
After all, special cross-generational circumstances inbred a certain sense of perpetual financial security to build such a massive chateau.
You view risk and capital outlays differently when your father and grandfather are the richest men in America, and you have never known poverty and hunger.
And, yes, the renowned journalist Anderson Cooper is a descendant of the Vanderbilts.
Therefore, peruse the narrative and gaze at recent photographs taken by staff photographer Charles Reamsof the grandest private home in America.
Before arriving in America, the Vanderbilt family's Dutch ancestor, Jan Aertsen, worked as a farmer in the Netherlands. His descendant, Cornelius Vanderbilt, began his career working with his father, who was a local sea merchant, ferrying produce and merchandise between Staten Island and Manhattan.
The four Vanderbilt generations include Commodore
Cornelius Vanderbilt (1st generation), William Henry Vanderbilt (2nd generation), Cornelius Vanderbilt II, William Kissam Vanderbilt, George Washington Vanderbilt II (3rd generation), and Cornelius Vanderbilt III (4th generation).
Cornelius Vanderbilt built a Railroad Empire.
His son, William Henry Vanderbilt, inherited $95 million, the equivalent of $2.9 billion in today’s value. Under his supervision, the family’s wealth had doubled by his death, a scant nine years from when he had received the inheritance.
Cornelius Vanderbilt II
Cornelius rose to become president of the railroad empire.
Cornelius Vanderbilt II's estate at the time of his death was valued at $72,999,867, with $20 million in real estate. This translates to approximately $2.76 billion in 2024 dollars.
William Kissam Vanderbilt
William received an inheritance of $55 million (equal to $1.0 billion today). He endured a costly divorce, settling on giving his wife $10 million. He later built a mansion in Paris and lived there until his death.
William started the Jockey Club in New York, bred and trained race horses, while also managing the railroad business.
George Washington Vanderbilt
George loved collecting art, reading books, and writing extensive notes on the books he read. He lived in various family properties well into his adulthood until he started to build his own mansion in Asheville, NC.
So he bought 125,000 acres from a black community called Old Shilo. Even though he paid for the property, the dislocation of the community caused considerable damage to the community.
In selecting a name for his estate, Vanderbilt combined his family’s hometown in the Netherlands (Holland) and the mountains of Western North Carolina. The name "Biltmore" is derived from "Bildt," a Dutch town with citizens of Vanderbilt ancestry, and "more," an old English term referring to rolling, mountainous countryside.
Many of the thousands of craftsmen who worked on the construction were black. All were paid. Many of the servants were also black.
The wives in the family employed women servants as stylists and secretaries. Many filled double roles and served well for a lifetime.
George started building the estate in 1989, and it was finished in 1895. Most of the land was sold, and today the estate contains 8,000 acres.
By gradually diverting his many interests from managing the family business and becoming an art collector, sportsman, traveler, and socialite, cracks in the family fortune started to slowly form.
Economic, political, and social factors slowly eroded family profits. A dangerous trend was set in motion that would have devastating effects on future generations. At the same time, the number of family members to receive inheritances increased while the profits were diminishing.
The yachts, mansions, and other enterprises required an army of servants to maintain them, although they produced no income and were a drain on profits.
Cornelius Vanderbilt III
Cornelius was a military officer, inventor, engineer, and yachtsman. He was married to the woman he loved. He also loved his preoccupations, especially tinkering and yachting. In fact, he died on his yacht. His widow died a few years later. She was buried beside him.
Many historians comment mainly on the families’ diminishing fortune in subsequent generations, as if that’s the most important thing.
Leave it to me to say they seem to do what was most important to them. If they were happy, did what they could for others, and avoided harming anyone, leave them alone. Who are we to dictate what others should have done with their fortune?
Tourists stream from all over the world to marvel at the largest private house in America and to examine its gardens, stables, winery, creamery, and fields.
The house has 255 rooms which spread over four acres of an architectural wonder. When Master Vanderbilt arose during the night to go to the john, he had to walk a mile to relieve himself, even though the chateau had 43 bathrooms.
Although swimming pools were not rare in that day, few if any were in the basement like the Vanderbilt enjoyed. A fan was powered to cool the dining room filled with guests dressed in elaborate outfits for the occasion.
A winter garden greeted arriving guests with a domed glass ceiling.
The titans of wealth point fingers and cry for heads to roll when super-rich clans squander billions.
However, it is impossible for one tyrant to exercise absolute control over the marketplace and the economy, much less so for all future tyrants in his line of descent to do so.
Nevertheless, is there a model for the super-rich to preserve their wealth forever?
Yes, a model exists for the ultra-wealthy to provide for descendants indefinitely through a combination of legal structures and family practices. The key is to utilize trusts, particularly dynasty trusts, and establish family values and traditions that prioritize wealth preservation.
Here's a breakdown of the model:
2. Estate Planning and Tax Optimization:.Opens in new tabWealthy individuals use various estate planning strategies, such as gifting assets to their children, creating GRATs (Grantor Retained Annuity Trusts), or selling assets to the trust, to minimize taxes and maximize the amount of wealth that can be passed on.
3. Family Values and Traditions:
Many wealthy families develop a system of values and traditions that emphasize the importance of family, wealth preservation, and philanthropy. These values help to guide the next generation and ensure that wealth is not squandered, according to CNBC.
Wealthy families typically diversify their investments across various asset classes, sectors, and geographic regions to minimize risk and maximize returns, says I Will Teach You To Be Rich.
Many ultra-wealthy families establish family offices to manage their investments, estate planning, and other financial matters. These offices also play a role in educating the younger generation about wealth management and financial responsibility, as reported by The Economist.
Example:
A family could establish a dynasty trust in Delaware, initially funding it with a portion of their assets. They could then utilize estate planning strategies to gradually add more wealth to the trust, ensuring that it can provide for their descendants for generations to come. Simultaneously, the family could establish a family office to manage the trust and educate their children about responsible wealth management, while also fostering family values that emphasize wealth preservation and charitable giving.
Important Considerations:
Rule Against Perpetuities:
Many states have the Rule Against Perpetuities, which limits the duration of trusts. However, some states, like Delaware, have modified or abolished it, allowing for the creation of dynasty trusts, as noted by Bloomberg.com.
Tax Implications:
While estate planning and trusts can help minimize taxes, it's important to consult with tax professionals to ensure compliance with all applicable laws and regulations, says Bloomberg.com.
Family Dynamics:
The success of this model also depends on the ability of the family to maintain strong relationships, communicate effectively, and work together towards a common goal of wealth preservation and generational continuity, according to The Economist.
Even so, my recent visit to the Biltmore Estates gave me no reason to feel sorry for the descendants of George Washington Vanderbilt.
The estate is well managed. There are fees that generate income for the family. There are gate fees, hotels, restaurants, the winery, a creamery, and many other income-earning machines. And the prices are high enough to furnish handsome profits to the family and low enough for tourists to bear.
So, despite the lively debate about where the Vanderbilts went wrong, they are not villains, and some branches of the clan are doing better than others. Never count the Vanderbilts out. Don’t feel sorry for them.
