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Recently, the American media published an interview with Warren Buffett, a well-known investor. In an exclusive interview, the "stock god" said that he revised his legacy giving plan to donate almost all of his remaining wealth to a new charitable trust managed by his three children. Warren Buffett currently holds Berkshire stocks worth about $130 billion, equivalent to about 944.8 billion yuan.
01 Warren Buffett changed his will again!
Warren Buffett has publicly pledged to "donate 99% of his personal wealth to charity during his lifetime or at the time of his death", and he continues to live up to this promise. Since 2006, Buffett has donated half of his stake in Berkshire, primarily to the Gates Foundation, as well as four foundations linked to the Buffett family.
Image source: Internet
According to the Gates Foundation, between 2006 and 2023, Buffett donated $39.3 billion to the foundation. In the latest interview, Warren Buffett made it clear: "After I die, I will not have the money to go to the Gates Foundation."
The "stock god" said that he had revised his will many times, and that he would revise it every few years. After seeing the children become more mature, he made his current plans.
In the latest arrangement, all remaining wealth after Buffett's death will be donated to a newly established charitable trust, which is overseen by his daughter Susan Buffett and two sons, Howard Buffett and Peter Buffett. The three of them must unanimously decide what to do with the money in this foundation.
Image source: Internet
Warren Buffett's behavior of modifying the will sparked heated discussions, and the topic rushed to the hot search. Some affirmed its philanthropic intentions, but more netizens questioned the move as a tax avoidance strategy.
Netizen: These wealthy people in the United States have the right to appoint their children as the president of the foundation, so that the inheritance is still in the hands of the children. Aren't these people setting up their own foundations just to transfer funds in disguise to avoid taxes? A foundation that is not a government is not a true charitable fund.
Netizen: At that time, Ma Yun was persuaded to donate naked, but fortunately, Ma Yun was not fooled. Now I've changed my mind.
02 Expert interpretation: Don't take it too seriously!
For questions raised by Warren Buffett's change of will, we interviewed Mr. Chen Kai, the founder of China Wills Bank and an advocate for the development of China's wealth inheritance culture, and Yang Hongxia, a senior lawyer at Beijing Heirloom Law Firm.
Q: The previous will said to donate, but now I don't donate, can I change it?
Ms. Yang Hongxia: Yes. According to the relevant inheritance laws in the United States, the testator can revoke or modify the will during his lifetime.
Q: What is the difference between donating to the Gates Foundation and donating to a foundation for children?
Lawyer Yang Hongxia: First of all, the projects that are concerned and funded are different. The Gates Foundation is concerned with the global fight against disease, poverty, and inequality. Warren Buffett's daughter, on the other hand, runs a foundation that funds reproductive rights and college scholarships. Warren Buffett's eldest son's foundation focuses on food security while also taking into account goals such as combating human trafficking. The Foundation-funded projects managed by Buffett's second son, Peter Buffett, include partnerships with Indigenous communities.
The second is that the beneficiaries are different. The Gates Foundation is a purely charitable trust, and the only beneficiaries are charitable activities. In Gates' own words, not a penny will go to his children.
Also, in 2022, Bill Gates announced that his private foundation could run for another 25 years and spend all his money in that time. This should also be one of the main reasons why Buffett decided not to donate money to the Gates Foundation, but to the foundation of his own children. Warren Buffett probably doesn't want to see his billions of assets spent in 25 years.
Q: What do you think of Warren Buffett's behavior of modifying his will?
Mr. Chen Kai: There is a saying that "they are all foxes for thousands of years, what do you play and talk about fasting?" Warren Buffett and Bill Gates have called on the world's wealthy to donate their wealth to charity, and suggested that each billionaire donate at least 50% of their wealth. At that time, many people in the country supported them.
Moreover, Warren Buffett and Bill Gates have declared that they will donate 99% of their wealth for charity, and it is not ruled out that they are going to do charity, and they have this kindness, but everyone should not be deceived by superficial phenomena. Buffett's previous will said that he would donate 99% of his property to the Gates Foundation, but now he has revised it to donate his property to the foundation established by his three children, although there is no legal problem, but in fact there is still a suspicion of "fertilizer does not flow into the fields of outsiders", because although the ownership of the property does not belong to the Buffett family, the control of the property still belongs to the Buffett family.
Q: What do you think of the American billionaires' enthusiasm for setting up charitable foundations?
Mr. Chen Kai: Some people say that Western charity is "hypocrisy", and of course we can't beat one piece to death with a stick. But many of the Western tycoons have made charity a tax haven through sophisticated legal structures, and all they do is put their property from their own names to the names of charitable foundations, but the property is still controlled by them and their families. There is a nominal loss of ownership of the property, but in reality there is no loss of control of the property.
This not only exempts the inheritance tax, but also avoids the risks of inheritance, marriage, politics and other aspects, not only controls the huge wealth, but also brings a good influence on the development of the family and the growth of wealth.
Philanthropy in the West is actually a kind of "impact investment". The money is just a change in a pocket, and the name has changed from the "Buffetts" to the public.
It is recommended that everyone should look at Western charity objectively, there are not only advanced places, but also some "tricks", and do not take it too seriously.
03 Learn the "stock god": take precautions to make inheritance arrangements
Regardless of the controversy caused by Warren Buffett's modification of the will, his awareness of making a will in advance and making a good arrangement of wealth is still worth learning from.
Image source: Internet
At the same time, the China Will Bank also reminds everyone that making and modifying a will is a "professional work", and it is recommended to consult a professional institution to find a suitable plan to build a "firewall" for family wealth.