The 93-year-old Buffett promised to donate 99% of his wealth, but almost all of it will go to charity funds controlled by his children?

A letter from stock investor Warren Buffett to Berkshire shareholders on the 21st of last month showed that he had already made estate arrangements and would donate more than 99% of his property after his death. But the truth may not be as simple as we think?
(Recap:Review of the Legend of Charlie Monger” Forming the Strongest Partner with Buffett and the Life of a Market Dominator）
(Background supplement:Stock god Buffett: Bitcoin is “just gambling” and he wants to get rich; banks may continue to collapse）

nowWarren Buffett, the 93-year-old chairman of Berkshire Hathaway and the stock god, welcomed the death of his “golden partner” Charlie Munger last week.

As one of the most intelligent people in investing in the world, Buffett has already made preparations, except for appointing 61-year-old Greg Abel as his successor. A week before Monger’s death (November 21), he also stated in a rare open letter to Berkshire shareholders that he had arranged his posthumous affairs, including his inheritance arrangements, saying that he was “deeply aware of the We are playing an overtime game in life.”

Buffett’s Will

According to thisdocumentIt shows that Buffett once again converted 1,600 Class A shares into 2.4 million Class B shares and donated these shares, worth approximately US$880 million, to his family’s charity.

At the same time, in the accompanying letter to all shareholders, he also frankly disclosed the future arrangements for his estate:

• First, he promised to donate more than 99% of his property to a charitable trust fund
• Secondly, he named his three children as executors and trustees of the charitable trust
• Finally, he expressed his confidence in Berkshire because they have a good board of directors and a designated successor.

Further reading:Who is Greg Abel, the “hand-picked successor” of the stock god?Charlie Monger praises: Evolved version of Buffett

Charity guru Warren Buffett

In fact, as early as 2006, Buffett co-initiated “The Giving Pledge” with Microsoft founder Bill Gates and his wife, calling on the world’s richest people to do charity and make donations. Many of them have pledged , he wants to donate more than half of his net worth to charity. Buffett even boasted that he would “donate all his property” after his death.

So far, Buffett’s donations to charities have reached an astonishing $51.5 billion!

To avoid taxes? Do you have control over your own children?

But can rich people like Buffett really be so selfless and give away the wealth they have earned throughout their lives? Things may not be as simple as we think.

Tax avoidance on donations

First of all, we need to know that the United States has levied inheritance tax since the 18th century. In the mid-1990s, the tax rate reached an astonishing 77%. Although today, the estate tax rate for estates greater than $2.5 million is still as high as 50%, so charitable donations have become a mainstream legal tax avoidance method.

Most of Buffett’s estate goes to family philanthropic foundation

Of course, it would be a good thing if you donate to a general charity, but the Buffett family’s charitable foundation will receive almost the majority of his wealth, and his three children will become the trustees of the fund.

Since these huge funds do not stipulate how much money they have to pay for charity every year, they can only use a small part of it for charity every year, and use the expenses in activities to reimburse their children’s living expenses, whether it is personnel expenses for running the foundation, ideas, etc. Commuting by plane, renting a venue for a party, purchasing art… can all be reimbursed in the name of the foundation.

It can gain good reputation while avoiding taxes, and it can also prevent individual children from getting too much money at once and ruining the family fortune. No wonder it has become a favorite method for American wealthy people to continue their family wealth.

📍Related reports📍

Japanese stock market hits 33-year high! Why does it continue to soar, and stock investor Buffett also increases investment?

Buffett spent 10 billion to invest in Japan’s five major trading companies, Monger: A century-old opportunity, the money is so good!

Buffett laughed!Berkshire’s investment performance has outperformed Bitcoin over the past five years