Richard Blum’s Trust Dispute Reveals Estate Planning Gaps & Public Transparency Issues

Richard C. Blum, financier, philanthropist, and husband of Sen. Dianne Feinstein, died on February 27, 2022, at age 86 after a long battle with cancer.
He built Blum Capital Partners and was a major benefactor to higher education and global development, including founding the American Himalayan Foundation and UC Berkeley’s Blum Center.
After his death, disputes arose over a 1996 marital trust for Feinstein, with lawsuits alleging failures to reimburse her medical expenses and improper trustee appointments.
The contested trust is relatively small ($1–5 million) within the couple’s broader holdings but has drawn scrutiny as real estate is sold and legal, governance, and elder-care issues play out publicly.

Life and Legacy

Richard Charles Blum was born July 31, 1935, and died on February 27, 2022, at age 86 in San Francisco after a long fight with cancer. [14][1][5] He is best known as chairman and president of Blum Capital Partners, a private equity investment firm he founded in 1975. [14] Blum married U.S. Senator Dianne Feinstein in 1980, after her first two marriages—including to neurosurgeon Bertram Feinstein—had ended. [1][14]

Blum’s philanthropic priorities centered on global poverty, education, and human rights. He founded the American Himalayan Foundation in 1981, becoming a close friend of the Dalai Lama and honorary consul of Nepal. [1][5] He also founded the Blum Center for Developing Economies at UC Berkeley in 2006, which later served as a model for similar centers across the University of California system. [5][1] His roles on various boards (e.g., National Geographic, Carter Center, World Wildlife Fund) supplemented his profile as a civic leader.[5]

Also important were his contributions to governance and the University of California system. Blum served nearly two decades as a UC Regents member and was chairman emeritus. During his leadership as chairman of the board (mid-2000s), he was praised for reining in administrative excesses, replacing ineffective leadership, and helping appoint Mark Yudof as president in 2008, whose five-year tenure was viewed favorably. [5]

Estate and Trust Disputes

Since Blum’s death in 2022, tension has emerged over the management of his estate and trust structures. Sen. Feinstein, via her daughter Katherine, filed a lawsuit asserting she has not received trust distributions for medical expenses, despite being the income beneficiary of a trust created circa 1996. [10][9] She also contests the appointment of trustees Mark R. Klein and Marc Scholvinck, arguing they were not validly named under the terms of the trust. [10]

The trust in question reportedly holds between $1 million and $5 million, with assets including a life insurance policy and its proceeds. [10] Trustees respond that there has been no refusal to disburse and emphasize practical issues like liquidity and taxes may be affecting timing. [10]

Strategic Implications and Open Questions

Governance and Trust Law: The case highlights risks in legacy planning when estates include trusts meant to serve both spouse and children from prior marriages, especially without clear trustee appointment procedures or clarity in trust terms.
Public Scrutiny and Political Risk: For a sitting U.S. Senator, financial entanglements and perceived lack of transparency can lead to political fallout. The visibility of these disputes affects Sen. Feinstein, both personally and in terms of governmental role and responsibilities.
Elder Care Considerations: Medical expense reimbursement has become a focal point, underscoring how health crises can trigger legal actions and escalate conflicts in family estates.
Disposition of Significant Assets: Beyond the relatively small medical trust, other substantial properties tied to her and Blum’s holdings (e.g., real estate in San Francisco, Lake Tahoe, Aspen, Stinson Beach) have been sold amid the trust dispute, suggesting ongoing mobilization of assets.[6]

Outstanding Questions

What are the precise terms of the 1996 marital trust? Are there clauses regarding the appointment of successors, distribution timing, and fiduciary duties that might clarify whether current trustees acted properly?
How significant are Feinstein’s medical expenses relative to her personal assets outside the trust, and to what extent does her income or wealth affect her entitlement?
What liquidity and tax constraints are delaying or affecting trust asset distribution?
Will there be additional legal challenges from Blum’s three daughters over larger asset divisions, beyond the medical trust or joint property?
How will this legal dispute affect public perception of Sen. Feinstein’s capacity to serve, especially given her health status and the visible lack of trust control?

Supporting Notes

Richard Blum died February 27, 2022, at his San Francisco home, aged 86, after a long battle with cancer. [5][1][14]
Blum founded the American Himalayan Foundation in 1981, a philanthropy focused on health, elder and child care, human trafficking, and Himalayan development. [1][5]
The Blum Center for Developing Economies was established at UC Berkeley in 2006, later replicated at other UC campuses. [5][1]
He served nearly two decades on the University of California Board of Regents, including as chairman emeritus. [5][14]
Feinstein claims trustees have refused to reimburse her medical expenses from the 1996 Marital Trust; she is the sole income beneficiary of that trust. [9][10]
The trust is valued between $1 million and $5 million; includes a life insurance policy and its proceeds. [10]
Trustees named in disputes include Mark R. Klein and Marc Scholvinck. [10][9]
Properties associated with the couple (e.g. San Francisco mansion, Lake Tahoe estate, Aspen ranch) have been sold as part of settling the trust/estate dispute.