Bill Gates' 'Anti-Paris Hilton' Plan To Make Sure His Kids Won't Inherit All That Gigantic Wealth

Business Insider ^ | 03/20/2014 | Dylan Love

[latina4dubya]

Warren Buffett said he was going to do this back in the late 1980s.

they got the idea from Warren Buffet...

Ron Howard--Opie, Richie Cunningham--also grew up in the home he lived in before he became quite the money-maker... his parents did not change their lifestyle as the money started coming in... smart people...

[Vaduz]

Need to have a sense that their own work is meaningful and important.
Do they take out the trash mow the lawn or clean their room?.

[Lurking Libertarian]

I’d set aside some for the first generation, second, third, etc.

Anything past the second generation is legally unenforceable, under the rule against perpetuities. The only exception is for charitable foundations.

[lepton]

As I understand, Forbes did something kind of like this with his son Steve. He gave him a full education, and some seed money, and sent him out to make his own fortune. If he didn’t, his inheritance was going elsewhere.

[Ramius]

There’s a difference, for some reason, between “old money” and “new money”. I’m not sure why. Old money families seemed to be able to raise kids not to self-destruct in their wealth. I don’t think the amount of money has anything to do with it. Kids have been spoiled rotten on far smaller sums than Gates’ kids will see. Kids have also grown up to be decent and classy people on far more... and far less.

[Chickensoup]

He knows his wealth is a government target and is trying to control how it is disbursed.

[Pearls Before Swine]

The truth lies somewhere in between. In a respectable institution, which Gates can certainly afford, the trustees are likely to be monitored so much that they are honest, but also are going to invest in a manner which is prudent according to current fashion to avoid any liability while collecting their fees.

Several decades ago, “prudent” in the legal sense meant mostly bonds, which was a generationally bad bet. However, prudent today might mean something like 50-50 stocks and bonds (allowing for some “alternative” investments too). Not a lot of work.

[AustinBill]

This is precisely the model that all dynasties use. The money belongs to the family, not the individual members, and is controlled through a network of foundations and trusts that ensure that its protected from both taxation and individual irresponsibility. Consider the Rockefellers, Kennedys, Venderbuilts, etc.

The Gates offspring will never want for money. So they'll be guided into "public service", i.e., politics.

[goodnesswins]

That is EXACTLY what he will do....His Daddy was an estate planning type attorney...knows all the tricks to protecting wealth from gov!

[minnesota_bound]

If he hates his kids then so be it but butt out of MY life and what I want to do with MY money!

[minnesota_bound]

: )