In a shabby New York side street in the mid-1880s, young Cedric Errol lives with his mother (known only as Mrs. Errol or "Dearest") in genteel poverty after the death of his father, Captain Cedric Errol. One day, they are visited by an English lawyer named Havisham with a message from Cedric's grandfather, the Earl of Dorincourt, an unruly millionaire who despises America and was very disappointed when his youngest son married an American lady. With the deaths of his father's elder brothers, Cedric has now inherited the title Lord Fauntleroy and is the heir to the earldom and a vast estate. Cedric's grandfather wants him to live in England and be educated as an English aristocrat. He offers his son's widow a house and guaranteed income, but he refuses to have anything to do with her, even after she declines his money. However, the Earl is impressed by the appearance and intelligence of his American grandson and is charmed by his innocent nature. Cedric believes his grandfather to be an honorable man and benefactor, and the Earl cannot disappoint him. He therefore becomes a benefactor to his tenants, to their delight, though takes care to let them know that their benefactor is the child, Lord Fauntleroy.