What will happen with Warren Buffett’s billions when he dies? Some of it might go to every kid on the planet says Fortune.
- Warren Buffett says he wants all his wealth spent within 10 years of his death
- This could have a huge impact on the life of children globally in case that is where the wealth is allocated.
Asset distribution
So reports the Wall Street Journal in a recent investigation of the future of Buffett’s fortune, which is worth $96.8 Billion at the time of this article’s publication. Berkshire Hathway CEO pledged 85% of his company’s stock to charity in 2006. The majority of this was designated to Bill and Melinda Gates Foundation. Four years later, he vowed to redistribute 99% of his wealth to philanthropy during or after his lifetime. Of Buffett’s $90 billion Berkshire stake, $56 billion will go to the Gates Foundation and $17.4 billion to four-family charities. This will leave around $18.7 billion uncommitted. The Journal says could climb if Berkshire shares continue to perform the way they have been. He reportedly wants his billions spent within 10 years of his death. Gates Foundation staffers have been banking on receiving the full amount of both Buffett’s pledged shares and remaining unpledged shares, the Journal reported.
Proposals
One proposed solution was to create a world children’s savings bank. The exact amount allocated to each child wasn’t disclosed, but a former Gates Foundation employee told the Journal that each child would receive thousands of dollars that “sit on a shelf, like a battle plan” for baby beneficiaries. But Buffett, who turns 92 this year, hasn’t yet disclosed the nitty-gritty of how his wealth will be split. Estate planning experts told the Journal his pledge letter was a bit vague. The investigation found that Susan Thompson Buffett Foundation, a family charity that supports abortion rights, has been hiring staff and planning for a “massive influx of money” as high as $100 billion. This means that it may be inheriting some of the windfalls of the Gates Foundation.
Impact on Children
It is said that if the Gates Foundation does receive enough money to distribute a cut to every child, it would help even the world’s socioeconomic playing field. This would also possibly provide parents with financial safety.
Bridging an Economic Gap
As the cost of living source, paying for one’s own expenses is becoming more and more unaffordable. Finances are partly why the percentage of U.S. non-parents ages 18 to 49 who say it’s not likely or not at all likely that they will have kids has increased a lot. The cost of raising a child in the U.S. sets parents back more than $280,000 on average. All of this is also leading to a decline in the birth rate. As wealth inequality and the pay gap widened during the pandemic, a growing number of billionaires have been thinking of more ways to allocate their assets.
If Gates staffers carry through with such plans for a worldwide children’s bank, Buffett’s billions could have the same effect across the globe.
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Source: Fortune
