When Warren Buffett made the largest charitable gift in his lifetime, the greatest investor of the 20th century unveiled his true will. At the age of 93, Warren Buffett has officially announced that his vast wealth will be held in perpetuity by a charitable trust managed by his three children.
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Warren Buffett's longtime friend and business partner, Munger, who passed away last year, was a key pillar of Buffett's success, and the two have worked together for more than 60 years. Munger's death undoubtedly dealt a heavy blow to Buffett, making him have to face up to his health and eternity, and it is particularly urgent to arrange the will properly.
The new anti-Semitism bill in the United States has made Warren Buffett see the situation clearly. This bill is tantamount to declaring the high status of Jews, and Buffett, as a wealthy Jew, should use the situation to carry out his ambitions. The inheritance is handed over to the family charitable trust, which can not only avoid taxes but also increase the power, which can be described as killing two birds with one stone.
Buffett originally planned to hand over a large amount of inheritance to the Gates Foundation, but now that the Gates are divorced, Melinda has withdrawn, and the foundation has changed its name, Buffett has to find another way out and can only entrust his children. This testamentary arrangement contains the triple consideration of Buffett as a legendary investor, a wealthy Jew and an ordinary old man.
For investor Warren Buffett, an estate trust can not only avoid high inheritance taxes, but also enable the Buffett family to maintain control over their wealth. Warren Buffett has always been adept at achieving his goals through a variety of operations, and this time is no exception. For Warren Buffett, who is Jewish, it is the best strategy to seize the east wind of the anti-Semitic bill and strengthen his own power.
Charitable trusts can permanently reflect the positive image of Jews in high status and giving back to society. As an ordinary old man, Warren Buffett also sees hope in the growing maturity of his children, believing that they have the ability to continue their careers. Letting children take over the inheritance is also the norm for parents to entrust their children and grandchildren, and Munger's death is undoubtedly a key incentive for Buffett to change his will.
Munger's unique insights, such as recommending investments in Coca-Cola and American Express, have been very successful. On the contrary, if Buffett did not consult Munger, he often made mistakes and missed the technology upstarts such as Google and Amazon. Even Warren Buffett's initial acquisition of Berkshire was extremely poor, almost dragging down his life's work.
Without Munger, there would be no Buffett legend. And Munger's death undoubtedly made Buffett feel that he had also entered his twilight years and had to prepare everything to meet the end of his life. Warren Buffett's estate trust arrangement can be said to be the best of both worlds, which not only avoids the loss of huge inheritance taxes, but also ensures that the wealth remains within the Buffett family to the greatest extent.
Through the image of the charitable foundation, it can also show the reputation of giving back to the society, sit firmly on the right to speak from the moral high ground, and strengthen the political influence of the Buffett family. Warren Buffett's arrangement, which balances asset preservation and prestige expansion, can be described as the ultimate art of estate processing.