Yahoo Finance 3 Money Moves Warren Buffett Made Writing His Will
Investing legend and Berkshire Hathaway chairman Warren Buffett is known not only for his financial acumen but also for his philanthropy.
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At 93, the Oracle of Omaha’s net worth stands at $129 billion, according to the Bloomberg Billionaires Index. While he pledged to give away most of his fortune, Buffett recently made some significant changes to his will.
As The Wall Street Journal reported, Buffett has said that after he dies, his fortune will now go to a new charitable trust overseen by his children.
“It should be used to help the people that haven’t been as lucky as we have been,” he told the WSJ. “There’s eight billion people in the world, and me and my kids, we’ve been in the luckiest 100th of 1% or something. There’s lots of ways to help people.”
In a June 28the statement, Buffet said that his will “provides that more than 99% of my estate is destined for philanthropic usage.”
“Nothing extraordinary has occurred at Berkshire; a very long runway, simple but generally sound capital deployment, the American tailwind and compounding effects produced my current wealth,” he said. “The lifetime commitments expire upon my death or at an earlier time if certain conditions set forth in the 2006 letter occur.”
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An End to Giving to the Bill & Melinda Gates Foundation
Most notably, Buffett said that “his giving to the Bill & Melinda Gates Foundation, to which he has donated billions, will come to an end,” according to The Wall Street Journal.
“The Gates Foundation has no money coming after my death,” Buffett told the newspaper.
This is quite a reversal, as Buffett co-founded, along with Bill Gates and Melissa French Gates, the Giving Pledge to “set a new standard of generosity among the ultra-wealthy,” and ask America’s wealthiest to commit to give most of their wealth to address some of society’s most pressing problems.
According to Ryan Jacobs, managing member and Chief Compliance Officer, Jacobs Investment Management, Buffett’s recent announcement regarding the redirection of his vast fortune has sparked varied reactions, highlighting both surprise and contemplation within the philanthropic community.
“Nearly all of Buffett’s remaining wealth, previously earmarked predominantly for the Bill & Melinda Gates Foundation and other family-linked charities, will now flow into a new charitable trust overseen by his three children,” said Jacobs. “This shift marks a significant departure from his longstanding commitment to the Gates Foundation, where his donations have totaled billions of dollars over the years.”
It’s worth noting, however, that on June 28, Buffett made significant donations to the Bill & Melinda Gates Foundation- with 9.93 million shares, according to a statement.
He also donated shares to the Susan Thompson Buffett Foundation and to the Sherwood Foundation, Howard G. Buffett Foundation and NoVo Foundation, according to the statement.
According to The New York Post, this latest philanthropic round amounted to $5.3 billion — “his biggest annual donation since he began making them in 2006.”
His Children Will Oversee the New Trust
Buffett told The Wall Street Journal that he made his decision, “after seeing how his children matured over the years.”
“I feel very, very good about the values of my three children, and I have 100% trust in how they will carry things out,” Buffett told the WSJ.
As Jacobs noted, the decision to cease posthumous donations to the Gates Foundation reflects Buffett’s evolving priorities and deep trust in his children’s values and capabilities to steward his legacy.
“While Buffett’s ongoing contributions to the Gates Foundation and other family charities will continue during his lifetime, the future distribution and impact of his philanthropy could be influenced by a myriad of factors,” added Jacobs.
Future Donations May Depend on a Slew of Factors
Buffett’s daughter Susie Buffett told The Wall Street Journal that the three of them had not yet discussed what they will do “because it seems a little premature.”
“I can imagine it will be probably some continuation of what we’ve been doing,” she said.
And Buffett’s son Peter Buffett said that their choices “could be affected by everything from stock prices to tax laws to social and political developments.”
“There are so many variables, it is impossible really to know what the right decisions will be at the time,” he told the WSJ.
Jacobs underscored the fact that Buffett’s strategic pivot underscores the dynamic nature of philanthropic planning, where personal values, family dynamics, and external circumstances converge to shape impactful giving strategies.
“His approach prompts reflection on the broader implications for large-scale philanthropy and the enduring legacy of one of the world’s most influential investors,” he added.
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