Warren Buffett Changes His Will: What Happens to His Money After His Death
Warren Buffett, the 93-year-old chairman of Berkshire Hathaway, has made significant changes to his will regarding the distribution of his vast fortune.
Source : The Wall Street Journal
In an interview with the Wall Street Journal, Buffett shared that he has revised his plans and will no longer continue donations to the Bill & Melinda Gates Foundation after his death. Instead, his wealth will be allocated to a new charitable trust managed by his three children.
Key Points:
- Change in Will: Warren Buffett announced he has altered his will to stop posthumous donations to the Bill & Melinda Gates Foundation.
- New Charitable Trust: His wealth will now go to a charitable trust managed by his three children.
- Class A to Class B Shares Conversion: Buffett is converting 9,000 Class A shares of Berkshire Hathaway into over 13 million Class B shares.
- Distribution of Shares:
- 9.3 million Class B shares will go to the Bill & Melinda Gates Foundation Trust.
- The remaining shares will be distributed among the four Buffett family charities: Susan Thompson Buffett Foundation, Sherwood Foundation, Howard G. Buffett Foundation, and NoVo Foundation.
- Confidence in His Children: Buffett expressed full trust in his children's values and their ability to manage his legacy.
- Lifetime Donations: Despite the changes, Buffett will continue his donations to the Gates Foundation during his lifetime.
Detailed Overview:
Warren Buffett, known for his philanthropic efforts, has reworked his will several times over the years. His latest decision reflects his confidence in his children’s ability to handle his fortune and their dedication to philanthropic work.
Each of Buffett’s children oversees a philanthropic organization, which has influenced his decision to direct his wealth towards a new family-managed charitable trust.
Previously, Buffett had pledged over 99% of his estate to the Gates Foundation and the four family-related charities. However, he has now shifted his posthumous focus entirely to the new trust managed by his children. Buffett stated, "I feel very, very good about the values of my three children, and I have 100% trust in how they will carry things out."
Financial Details:
Current Shares: After his latest donations, Buffett holds 207,963 Berkshire Hathaway Class A shares and 2,586 Class B shares.
Value: The total value of these shares is approximately $128 billion.
Recent Donations:
- Last year, Buffett donated about $870 million to his family’s charities.
- In 2022, he donated around $750 million to these organizations.
Total Contributions to Gates Foundation: Mark Suzman, CEO of the Gates Foundation, acknowledged Buffett’s generosity, noting his total contributions amount to approximately $43 billion over more than 18 years.
Overview :
Warren Buffett's revised will marks a significant shift in his philanthropic strategy, entrusting his legacy to his children and their respective foundations. This move underscores his belief in their ability to continue his charitable endeavors effectively. As he continues to support the Gates Foundation during his lifetime, his children will play a crucial role in managing and distributing his wealth after his death.
By ensuring his fortune supports causes close to his family’s values, Buffett remains committed to philanthropy, demonstrating his enduring trust in his children and their commitment to making a positive impact.