L'Oreal Heiress Liliane Bettencourt Loses Control Of Her $23 Billion Fortune

A misbehaving L'Oreal heiress who allegedly mismanaged her family's money lost control of her fortune this week and was placed under a civil guardianship. Yawn, you say? What about this: the wild child in question is 89 years old.

French courts declared yesterday that Liliane Bettencourt, who at 89 is the richest woman in France, is too ill with dementia to control her family fortune and placed her under the guardianship of her 25-year-old grandson, Jean-Victor Meyers.

The money itself was placed under the watch of Meyers; Francoise Bettencourt-Meyers, the daughter who's battling the elderly heiress in litigation; and a third grandson, as WWD reported. After mother and daughter declared a cease-fire ten months ago, the bitter battle resurfaced, culminating in Bettencourt's guardianship.

A very public legal battle has swirled around the L’Oreal fortune, estimated at around $23.5 billion, for years. Bettencourt-Meyers first argued that her mother was mentally unfit to manage the family’s wealth after celebrity photographer Francois-Marie Banier claimed to have received over 1 billion euros worth of gifts from the elderly heiress. FYI, any heiresses reading: we're not opposed to billion dollar gifts, either.

Claims also surfaced that Bettencourt made illegal donations to President Nicolas Sarkozy’s campaign in 2007, though those claims have yet to be investigated.

L'Oreal is the world's biggest beauty company, and the Bettencourt family holds a whopping 31% of its shares.

Forbes earlier this year listed Bettencourt at number 15 on its Billionaires list, with her portion of the L'Oreal wealth totaling around $23.5 billion. Bettencourt was one of Bernie Madoff’s biggest victims, rumored to have lost close to 22 million euros in the investor’s Ponzi scheme.

The family feud won’t be slowing any time soon; if anything, Bettencourt is now more determined than ever to free her wealth from her daughter's control. She told a newspaper earlier this year that she would rather die or “go and live abroad” than be placed under the “suffocating” control of her daughter. Yikes. Bettencourt’s lawyer also stated that the ruling was “profoundly disappointing” and that Bettencourt is prepared to go through “nuclear war” with her daughter.

We're guessing the next family dinner is going to be a little awkward.

Comments

[Comidoki]

07:21 AM on 10/24/2011

She should have just left her entire fortune to charity while she had the chance. Nothing worse then seeing family fight over money.

[RU Mad II]

07:39 AM on 10/20/2011

The rest of the world is fighting to stay afloat while these ding bats fight over billions of dollars?

Nice human interest story.

[Heraklia]

02:05 AM on 10/20/2011

Remember what happened to Brooke Astor. Her son took advantage of her after she developed Alzheimer's and tried to steal everything she had. Liliane has a good reason to be worried.

[Lozange]

11:02 PM on 10/19/2011

Liliane is a liability to the brand at this point, with the kickbacks, the Seychelles etc. Hate to admit but the daughter may be justified. Then again, normal people have bigger problems and the rich can just have it out with each other.

[SHIRLEY CARR]

05:16 PM on 10/19/2011

family guardianship..estranged families..the only thng different here is the where...

[UmmmHummm]

03:31 PM on 10/19/2011

Whew, you scared me with the caption. I thought she actually "lost" billions! At her age, she doesn't need that much money. She should be happy to have sharper minds handle it so she can just chill on the residuals.

[tchoupitoulav1]

10:17 PM on 10/19/2011

UmmmmHummm- I thought the EXACT same thing!!!!!!!! I thought she had "Lost" all as well. My stomach dropped when I read the headline. F&F!

[sbmulqueen]

02:46 PM on 10/19/2011

I do believe I read in either WWD or the WSJ that the L'Oreal board also is worried about Liliane Bettencourt's state of mind. Given that the family is also the largest stakeholder in the company, the family does have a duty to the rest of the company to make sure the stake and fortune are managed properly and that she is not under the influence of people with clearly bad intentions. Now the drama between mom and daughter is obviously bigger than a corporate battle, which is what makes it juicy!

[LiberalLee]

12:52 PM on 10/19/2011

Dun't it just suckk when Granny gets loopy?

[madame fate]

12:25 PM on 10/19/2011

My dad had 2 silent strokes and is dealing with dementia which is progressing at an alarming rate. Last time I saw him he couldn't remember my name. I figure Christmas will be the last holiday he'll know me at all.

Dementia (of any origin) is a terrible condition. One has good days when they are lucid and clear headed and other days when they are angry, upset, childish, scared, foolish and dangerous. If the courts found her in need of a guardian then you know she must be pretty bad off. Her pride and her dignity must be wounded. Suspicion runs wild with dementia patients. They see plots everywhere, they think people are stealing from them.

I hope the mother and daughter can reconcile while there is still time.

[littlepuffycloud]

12:19 PM on 10/19/2011

Those poor rich people..

[cowboyson1]

12:17 PM on 10/19/2011

We should eat the worthless rich who bleed the working class.

[alhorvath]

03:05 PM on 10/19/2011

I think you are the one who is worthless!

[hellnomo]

09:02 AM on 10/20/2011

You would probably want someone to hold the fork for you, lazy.......

[Cindy Russell444]

10:16 AM on 10/19/2011

This is why people should be happy they're not rich. At least when you're poor and you can't stand someone in your family, there's a better reason for it than "they wouldn't give me any money."

[Rahxn]

09:44 AM on 10/19/2011

That kid's going to run through his grandma's fortune like a pile of leaves!!!!!!

[rsxsims]

09:33 AM on 10/19/2011

Make a fortune, only to have someone else spend it, thats about the way things go..

[mikeyaz17]

11:38 AM on 10/19/2011

if that's the case... here's my phone number.....

[Havana Thinks]

09:19 AM on 10/19/2011

It is sad that a 25 year old grandson is now in charge. But it would be even sadder if the judge had ordered her to perform 50 concerts for her This is It! tour + had Dr. Murray watch over her medical requirements.

[LiberalLee]

12:55 PM on 10/19/2011

It's not just him. Read the article again. His Mama's on board too and a third grandson. Maybe an older one.
Sounds like they just bumped the oldest generation out of the way before she blew it all.
And for all you know, junior's been working in the family biz since he was a kid and planned his college years accordingly.
Don't slam someone's ability just because they're only 25.

[Havana Thinks]

09:37 PM on 10/20/2011

I apologize, LiberalLee. You do have a perspective I had not considered. It is just in my experience, the young who were raised with a silver spoon are usually for the most part not considerate but are arrogant and feel entitled. They usually run through their parents' funds and are disrespectful. Of course, there are exceptions. ThankU for setting me straight. Faved+badge. :)