Bill Gates and his estate: the controversial strategy for children

The decision of how to distribute one’s wealth among one’s children remains one of the most sensitive issues for billionaires. Bill Gates has sparked the debate by revealing in an interview that his children will receive less than 1% of his overall wealth, a choice that reflects a very specific educational philosophy on the meaning of money and personal responsibility.

Bill Gates’ conservative philosophy on heritage

According to Forbes data updated in December 2024, Bill Gates’ net worth stands at around $128 billion. Calculating 1% of this figure, the three children of the founder of Microsoft will each receive just over 1.28 billion dollars, a sum that is still extraordinary from an ordinary point of view, but infinitesimal when compared to the total wealth of the father.

Gates expressed this decision during an interview with the Raj Shamani podcast, stating that all parents should have the right to self-determination regarding inheritance. However, his position is clear: “My children have had an excellent education and development opportunities, but they will not inherit more than 1% of the total wealth, because I believe that too much inheritance compromises their personal growth.”

This choice reveals a deep conviction: excessive money is not an advantage, but a potential disadvantage for the character development of young adults. Gates wants his children to build their own path to success on their own, rather than being crushed by their father’s extraordinary legacy.

Education before wealth

Gates’ strategy extends beyond simple monetary distribution. During the same interview, he clarified: “I don’t expect them to run Microsoft or my businesses. I want to offer them the opportunity to generate their own income and to achieve success through their personal skills.”

This statement distinguishes a parental approach that privileges self-determination over acquired inheritance. The three children—Jennifer, Rory, and Phoebe—have all completed prestigious undergraduate studies (Stanford University and University of Chicago), an element that Gates often emphasizes when talking about the value of education.

Earlier, Gates and his ex-wife Melinda announced that each of the three children could inherit $10 million, an already high but deliberately limited amount. This choice represents an unequivocal signal: wealth must not become the defining value of the lives of one’s spouses.

Gates also reiterated that the true use of his assets lies in supporting people and projects that address the most pressing global needs. The challenges of polio eradication and HIV vaccine research remain central to the Gates Foundation’s mission.

Warren Buffett: A Different Path

Gates’ position becomes even more prominent when compared to that of Warren Buffett, his longtime friend and collaborator of the foundation. Unlike Gates’ conservative approach, Buffett opted for a generously different, though equally philosophically fundamental, strategy.

In November 2024, during Thanksgiving, Buffett announced a massive donation to the company through the family foundations run by his three sons: he transferred $1.143 billion in Berkshire Hathaway shares, converting 1,600 class A shares into 2.4 million class B shares.

However, Buffett’s generosity does not reflect a lack of principle. In his 2024 letter to shareholders, Buffett revealed that after his death, all remaining wealth will be transferred to a charitable trust fund overseen by his three children—Susie, Howard, and Peter—who will have to make decisions unanimously.

Buffett made it clear: “Very wealthy parents should leave their children enough money to do anything, but not so much that they can do nothing.” Over the years, he has actually transferred millions to his children, a practice consistent with his philosophy.

Two visions of wealth compared

The fundamental difference between Gates and Buffett lies not in generosity, but in timing and methods. Gates prefers to maintain control of assets throughout his lifetime, allocating wealth to global projects through his foundation. Buffett, on the other hand, gradually transferred control of his assets to his children, allowing them to manage the wealth and associated responsibilities.

Both agree on one essential point: the importance of communicating one’s testamentary decisions. Buffett specifically advised every parent to discuss the will with family members while still alive, just as he did. He noted that many families have been destroyed by the confusion and anger generated by unclear wills.

The conversation between these two giants of wealth and philanthropy offers a universal lesson: regardless of the approach, awareness and transparent communication are key. Whether you choose to limit your inheritance to 1% of your estate or transfer billions to your children, the important thing lies in the ethical foundation of that decision and its alignment with family values.

The debate on how to manage wealth remains open and subjective, but the choices of the likes of Bill Gates show that the conservative approach to inheritance is not a lack of love, but a conscious expression of parental responsibility.