Bill Gates is a household name thanks to his tech enterprise that he started after dropping out of Harvard. People would presume that his children would receive a sizable amount of his net wealth of over $130 billion, guaranteeing their places among the world’s elite. But Gates sees his legacy in a different light.
Gates declared that his three children will “only” receive a “minuscule portion” of his income in an interview with The Daily Mail in 2011. Just $10 million apiece, he said. This wasn’t an impulsive decision; rather, it was a deliberate one motivated by his convictions about the value of perseverance and purpose.
Among the ultra-wealthy, the revelation of such a meager gift from one of the richest men on the planet sparked a national conversation about inheritance, money, and parental duty. During a 2013 Reddit “Ask Me Anything” (AMA) session, a user brought up Gates’ stance once more, commenting on the philanthropist’s influence on other wealthy people:
“I know a lot of wealthy people who consider Bill Gates to be their hero. For his charitable work rather than his Microsoft days. In addition, he destroyed many of my friends’ $100 million trust funds at the same time that their parents learned Bill was only leaving $10 million for his kids.
Gates reaffirmed his position in response:
“I firmly believe that giving children enormous sums of money is not a kindness to them. Before I met him, in 1986, Warren Buffett was mentioned in a Fortune article on this very topic. It got me to thinking, and I concluded that he was correct. Melinda and I are happy with this, despite the opinions of some others.
Bill and Melinda remained steadfast in their dedication to their children’s inheritance plans, which haven’t altered even after their divorce in 2021. The lack of a prenuptial agreement gave rise to speculation about possible changes to their children’s inheritance, but in the end, their intentions have stayed the same.
Views on this subject differ. Some contend that utterly denying children their inheritance would cause animosity and strife within the family. Some people think a modest inheritance can provide as a safety net without deterring individuals from achieving their goals in life.
According to a Merrill Lynch and Age Wave survey, the majority of Americans over 55 now favor leaving some of their estate—on average 30%—to be distributed while they are still living. They can now assist in providing for the continuing requirements of family members and take pleasure in witnessing the results of their labors. Just 10% of Americans over 55 characterize a “life well lived” as “accumulating a lot of wealth,” while 94% define it as “having family and friends that love me.”
Though it’s difficult to envision receiving negative feedback for choosing to give your children $10 million, opinions might change when talking about billionaire riches. The majority of individuals view wealth transfer as a very personal decision. Everyone must consider their legacy, even the extremely affluent as the Hermes heir who gained notoriety for wishing to adopt his gardener and those with less resources. Notwithstanding your financial circumstances, having a plan might help you feel more at ease. You can develop a plan that supports your principles and aims with the assistance of a financial advisor.