No money for Gates Foundation post Buffett's death, changes will
Buffett's proactive approach to philanthropy and estate planning shapes global conversations on wealth distribution and charitable giving
New Delhi: Warren Buffett, renowned investor and chairman of Berkshire Hathaway, is not only recognized among the world’s top 10 richest individuals but also admired for his philanthropic endeavors. Recently, he made headlines by revising his will, disclosing details about the distribution of his estate after his passing.
According to the Bloomberg Billionaires Index, Warren Buffett, aged 93, holds a total net worth of $128 billion. While he ranks 10th in the global billionaires’ list, Mukesh Ambani, Chairman of Reliance Industries and Asia’s wealthiest person, ranks 11th with $118 billion. Despite the slight difference in rankings, there is a significant $10 billion gap in their fortunes. Meanwhile, Bill Gates, founder of Microsoft, holds the 7th position with a net worth of $157 billion, as of July 2, 2024.
In a recent interview with Wall Street Journal, Warren Buffett discussed changes to his estate planning, aiming to prevent charitable donations to the Bill and Melinda Gates Foundation after his demise. This means that the Gates Foundation will no longer receive any contributions from Buffett’s estate.
As per the revised will, Buffett’s estate will now go to a new charitable trust that will operate under the guidance of his three children. Buffett expressed confidence in his children’s values and hopes that they will effectively manage his philanthropic legacy. This has led to several amendments in his will.
Despite these changes, Buffett intends to continue donating to the Gates Foundation during his lifetime. Previously, he had stated that over 99% of his wealth would be directed to the Bill and Melinda Gates Foundation and four family-associated charitable trusts—the Susan Thompson Buffett Foundation, Sherwood Foundation, Howard G. Buffett Foundation, and NoVo Foundation.
Recently, Berkshire Hathaway announced that Buffett is converting approximately 9,000 Class A shares into 1.3 million Class B shares. Of these, 9.3 million shares will go to the Bill and Melinda Gates Foundation Trust, while the remaining shares will be allocated to four trusts associated with the Buffett family.
Last year, Buffett donated $87 million to his family’s four trusts, and in 2022, he gave approximately $75 million. Buffett currently holds 207,963 Class A shares and 2,586 Class B shares of Berkshire Hathaway, valued at around $128 billion.
Key takeaways from Warren Buffett’s Will Revision
In India, philanthropists like Shiv Nadar, founder of HCL Technologies, lead charitable donations according to the EdelGive Hurun India Philanthropy List 2023. Shiv Nadar’s annual donation amounts to INR 2,042 crore, approximately $560,000 per day. Meanwhile, Azim Premji of Wipro donated INR 1,774 crore, while Mukesh Ambani is ranked third with donations totaling INR 376 crore.
Warren Buffett’s story teaches several lessons. Firstly, it underscores the importance of creating a will to ensure your estate is distributed according to your wishes after your passing. Secondly, it highlights that a will can be amended multiple times during one’s lifetime. Lastly, it emphasizes the need to register your will with a registrar’s office for authenticity.
Buffett’s proactive approach towards philanthropy and estate planning continues to inspire, shaping discussions on wealth distribution and charitable giving worldwide.