Buffett stops donating to the Gates Foundation after his death; children decide on his fortune of 128 billion dollars

Warren Buffett announced on Friday that he will no longer make donations to the Bill & Melinda Gates Foundation after his death. He revealed this major change in his giving plan in an interview with the Wall Street Journal. Instead, Buffett’s three children will decide how the rest of his $128 billion fortune will be distributed.

Buffett, the 93-year-old billionaire CEO of Berkshire Hathaway, outlined his new estate plan, which requires his children — Howard, Susie and Peter Buffett — to vote unanimously on where his Berkshire Hathaway shares will go after his death. He did not respond to questions from The Associated Press about the plan.

Since 2006, Buffett has donated about $55 billion worth of Berkshire stock to five foundations. The majority of these donations went to the Gates Foundation, while the other four foundations are linked to his family, including those managed by his children.

“The Gates Foundation will not receive any money after my death,” Buffett said. The decision followed his departure from the Gates Foundation board in 2021, which came after Bill Gates and Melinda French Gates announced their divorce. French Gates left the foundation earlier this year.

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In his original 2006 pledge, Buffett had planned to include the Gates Foundation in his will. He wrote that his will would continue his commitment through the distribution of the remaining reserved shares or in some other way. On Friday, however, Buffett clarified that his original pledges were valid only until his death.

After his death, Buffett’s children will decide how to use his Berkshire shares, following his principle of helping the less fortunate. “They should be used to help the people who were not as fortunate as we were,” Buffett told the Journal, referring to the large number of people in need compared to their fortunate situation.

Mark Suzman, CEO of the Gates Foundation, expressed his appreciation for Buffett’s generosity and acknowledged his contributions and advice over 18 years. Suzman emphasized that Buffett’s donations, totaling approximately $43 billion, have been critical to furthering the foundation’s mission.

The value of Buffett’s donations has risen as Berkshire’s share price has risen. The shares he gave away are now worth more than his total assets when he announced his donation plan. Berkshire’s Class B shares have risen about 22% over the past year.

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Buffett’s will specifies that over 99 percent of his estate will go to charity. His Susan Thompson Buffett Foundation particularly supports abortion rights, while his children and the Gates Foundation manage their shares of his donations independently. Howard Buffett, for example, has donated more than $500 million to Ukraine since the Russian invasion, focusing on aiding war zones.

Buffett also makes occasional undisclosed donations to various charities. He currently owns 207,963 Berkshire Class A shares and 2,586 Class B shares, which ensures his significant influence over Berkshire’s operations. He has not bought or sold any Berkshire shares in the past 18 years.

Greg Abel, one of Berkshire’s vice chairmen who oversees all non-insurance businesses, is expected to succeed Buffett as CEO. Howard Buffett will become chairman of the board, but Buffett’s children will not be involved in the day-to-day operations of the company. Berkshire Hathaway owns a wide range of businesses, including BNSF Railroad, Dairy Queen, Precision Castparts, Geico and a significant stock portfolio that includes companies such as Apple, Coca-Cola, American Express and Bank of America.

(With input from agencies)

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