By Bill Gates, the visionary behind Microsoft, has openly stated that his three children will inherit a relatively small fraction of his colossal fortune – less than one percent, to be exact.
While that sliver still translates to billions, the decision places him among a growing cohort of tech titans prioritizing philanthropy over passing down generational wealth.
The billion-dollar inheritance
According to the Bloomberg Billionaires Index, Gates’ current net worth hovers around a staggering $162 billion.
One percent of that equates to $1.62 billion.
While this is a significant amount, it is still a small percentage of Gates’s overall wealth.
That inheritance will likely still catapult them into the top 1% of wealthiest individuals globally, defined by Knight Frank as those possessing $5.8 million or more.
Gates’ philosophy on wealth and opportunity
In a recent conversation on the ‘Figuring Out With Raj Shamani’ podcast, Gates articulated his reasoning behind this decision, emphasizing personal beliefs as the driving force for inheritance plans among wealthy families.
“Everybody gets to decide on that,” Gates stated, adding, “In my case my kids got a great upbringing and education but less than 1% of the total wealth because I decided it wouldn’t be a favor to them.”
He continued, “It’s to a dynasty, I’m not asking them to run Microsoft. I want to give them a chance to have their own earnings and success.”
His comments echo sentiments shared with the Daily Mail in the past, where he mentioned earmarking $10 million for each child, believing larger sums would be detrimental.
While it remains unclear if his plans have shifted to reflect the 1% allocation, his core philosophy remains consistent.
Gates stressed his desire for his children to achieve significance independent of their father’s success. He doesn’t want them “overshadowed by the incredible luck and good fortune [their father] had.”
He further explained, “You don’t want your kids to ever be confused about your support for them and your love for them. So I do think explaining early on your philosophy: that you’re going to treat them all equally and that you’re gonna give them incredible opportunities, but that the highest calling for these resources is to go back to the neediest through the foundation.”
Having witnessed their parents’ dedication to philanthropic endeavors such as eradicating polio, improving water sanitation, and developing life-saving vaccines, Gates hopes his children will carry a sense of pride in these efforts.
He also noted a growing trend, stating, “I’ve seen cases where kids actually tell their parents to be more philanthropic. I think the younger generation sometimes actually is pushing against this idea of the wealth just being passed down.”
Gates joins a growing list of tech giants who are choosing to donate their wealth to charitable causes, rather than passing it down to their offspring.
Laurene Powell Jobs, the widow of Apple co-founder Steve Jobs, has publicly stated that the billions she inherited will not be passed on to their children.
Jobs, who was worth an estimated $7 billion at the time of his death in 2011, “wasn’t interested” in building legacy wealth, his wife told The New York Times in 2020.
“I inherited my wealth from my husband, who didn’t care about the accumulation of wealth,” she said.
I am doing this in honor of his work, and I’ve dedicated my life to doing the very best I can to distribute it effectively, in ways that lift up individuals and communities in a sustainable way. If I live long enough, it ends with me.
Amazon’s founder, Jeff Bezos, has made similar commitments, pledging to donate the majority of his wealth to philanthropic causes.
Gates believes this trend reflects a broader shift within the tech sector. “I think people who’ve made fortunes from technology are less dynastic,” he observed.
So they’ll take their capital and give a lot of that away. You can have the view of giving away your capital or just giving away your earnings. I love all philanthropy but the tech sectors, they’re probably the most aggressive about giving most of it away.
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