Warren Buffett rarely modifies his will: $130 billion estate is managed by his children and no longer donates to the Gates Foundation

Tencent Finance

2024-06-30 22:28Tencent Finance official account

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Warren Buffett has changed his will to use his $130 billion estate to set up a new charitable fund, which will be jointly managed by his three children.
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Warren Buffett's new fund will be the world's most-funded charity, surpassing the $75 billion Gates Foundation.
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Warren Buffett said that after his death, the Gates Foundation will no longer be able to continue receiving donations.

Tencent Financial News reported on June 30 that according to foreign media reports, Warren Buffett, a famous investor with the reputation of "God of Stocks", recently announced the content of his revised will. Buffett, who owns nearly $130 billion worth of Berkshire Hathaway stock, decided to use that wealth to set up a brand new charitable trust, which is managed by his three children. At the same time, Warren Buffett announced that after his death, the Gates Foundation will not continue to receive donations.

Warren Buffett rarely modifies his will: $130 billion estate is managed by his children and no longer donates to the Gates Foundation

Why change your will suddenly? Established the world's largest charitable foundation

At the helm of Berkshire Hathaway, Warren Buffett recently made adjustments to his giving program. He made it clear that after his death, he would donate the vast majority of his remaining wealth (99%) to a newly established charitable trust, which would be managed by his eldest daughter and two sons.

To date, Buffett has donated more than half of his stake in Berkshire Hathaway. Since taking over the company in 1965, he has established itself as a leader in the investment world. After the latest round of charitable giving was announced, Buffett still holds nearly $130 billion worth of company stock.

In November 2023, Warren Buffett made plans for his huge estate for the first time and appointed three children as executors and trustees of the trust. "In 2006, my children may not have been ready to take on the responsibility, but now they are ready," he said at the time. I am very proud of their values and have every confidence that they can manage well. ”

Buffett added that his children will have an advantage over him when it comes to dealing with future changes in tax and foundation laws. "As much as I try to think outside the box, there are situations where I may not be able to make the best decisions like my three children whom I trust completely," he admits. ”

Caption: In 2015, Warren Buffett's three children, from left to right, are Howard, Susie and Peter

Buffett's three children had to agree when deciding on the charitable use of this huge amount of money. Buffett, 93, said he had no specific instructions for Susie, Howard and Peter Buffett. But he shared his insights on giving: "These funds should be used to help people who are not as fortunate as we are. There are 8 billion people in the world, and our family is always the luckiest one percent. There are many ways to help others. ”

The Future Foundation, managed by Warren Buffett's children, will be one of the world's largest philanthropies at the outset, and is expected to rival the $108 billion Novo Nordisk foundation. The foundation will immediately outperform other large philanthropy, including the $75 billion Gates Foundation and the $16 billion Ford Foundation, with the ability to fund billions of dollars in projects each year.

How to donate in the future? The three children discussed the decision

Warren Buffett has dedicated his life to philanthropy. Back in 2006, he publicly announced his intention to donate, pledging to donate annually to the Gates Foundation and four foundations closely associated with his family during his lifetime.

According to the plan, Buffett will donate 5% of his remaining shares in Berkshire Hathaway to these foundations each year. Although the number of donated shares is decreasing year by year, the increase in the share price may make the value of the donation continue to increase. It is worth mentioning that the price of Berkshire Hathaway Class B shares is now more than six times what it was at the end of June 2006, thanks to the 2010 stock split.

Buffett said his donations to the five foundations were limited to the time he was alive. He admits that he has revised his will many times, which stems from his testimony and trust in the growth of his children over the years, so he has formulated the current donation plan.

Susie, 71, lives in Omaha and serves as president of the Sherwood Foundation, which focuses on advancing early childhood education and social justice causes. She is also the head of the Susan Thompson Buffett Foundation, which was established in her mother's name to support programs such as reproductive rights and college scholarships. Her mother, Warren Buffett's first wife, died in 2004.

Howard, 69, who lives in Decatur, Illinois, leads the Howard G. Buffett Foundation, which focuses on food security, conflict mitigation and combating human trafficking. Susie and Howard both sit on Berkshire Hathaway's board of directors.

Peter, a 66-year-old music composer, co-leads the NoVo Foundation with his wife, Jennifer Buffett, whose projects include collaborations with Indigenous communities. They live near Kingston, New York.

In an interview, Buffett's children said they have not yet made a decision on how to distribute the money. "We haven't started a discussion about how we're going to use the money because it seems premature at the moment," Basusi said. But I can foresee that this will be a continuation of the philanthropic work to which we have long been committed. ”

Peter points out that their final decision can be influenced by a variety of factors, including stock price fluctuations, changes in tax laws, social dynamics, and political developments. "With so many uncertainties and uncertainties, we now can't know exactly what the best decision is," he stressed. ”

Howard also admits that the three siblings have a heavy responsibility. "I think it's a great privilege to be able to take responsibility for someone who has invested in a charitable foundation," he said. ”

Enough donations? The Gates Foundation ended up receiving a $4 billion donation

Berkshire Hathaway announced that Warren Buffett recently completed a major conversion, converting 8,674 Class A shares into 13.01 million Class B shares to support a new round of charitable giving. Of these, approximately 9.3 million Class B shares will be donated directly to the Gates Foundation, while the remainder will be distributed to four charities owned by the Buffett family.

Based on Thursday's closing price, the Gates Foundation will receive about $4 billion worth of Berkshire Hathaway stock, while the Susan Thompson Buffett Foundation will receive an endowment worth about $400 million. The foundations of Warren Buffett's children each received more than $280 million worth of stock. One Class A share represents ownership of 1,500 Class B shares, and Class A shares enjoy a significant advantage in voting rights.

Berkshire Hathaway said that after the donation, Buffett still holds 207963 Class A shares and 2,586 Class B shares of the company, with a total value of about $128 billion.

However, Buffett announced that he would stop donating to the Gates Foundation. "After my death, the Gates Foundation will no longer receive any financial contributions," he stressed. ”

Over the years, the Gates Foundation has received tens of billions of dollars in generous donations from Warren Buffett. The Gates Foundation is one of the world's largest foundations and is recognized for its work on global health, poverty, and gender equality. From 2006 to 2023, Buffett donated a whopping $39.3 billion to the foundation, according to the foundation's website.

Mark Suzman, CEO of the Gates Foundation, said: "The Gates Foundation is deeply grateful to Warren Buffett for his donation. Over the past 18 years, Buffett has been incredibly generous in his contributions and advice to the Foundation. He has played a vital role in supporting and shaping the Foundation's work to create a world where everyone can live a healthy, productive life. ”

It is worth mentioning that until 2021, Buffett was a trustee of the Gates Foundation, but he chose to resign less than two months after the Gates announced their divorce plan. In addition, Melinda French Gates, Gates' ex-wife, also recently left the foundation, stepping down earlier this month.

Since its inception, the Gates Foundation has awarded nearly $78 billion in grants dedicated to eradicating poverty and serious diseases such as malaria that claim hundreds of thousands of lives each year. (Compiler/Golden Deer)

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