Could you do a "Bill Gates"?

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Icey
Posts: 10161
Joined: 18 Feb 2015, 18:13

Could you do a "Bill Gates"?

Post by Icey » 27 Oct 2016, 14:47

It's reported that Bill Gates won't be leaving a penny of his billion pounds-worth of fortune to any of his 3 children. His children're said to "understand" his reasons for leaving his money to charity when he dies, and in return, Bill says that the children're getting a wonderful education which he hopes'll help them to make their own money, but there's more to it.

I see that Bill set up a charitable foundation, which'll oversee his wealth and pay out at staged intervals to the beneficiaries, so perhaps the intention's for his children to become CEOs of these charities, and still earn fabulous wages for hardly doing much at all, but my question is, if you had all the money that Bill has, would you leave your children out of your will? On a smaller scale, Paul McCartney intends to do the same. I assume that by giving to charities, there's some legal tax avoidance scheme which the uber-rich can fall back on? :think:

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yogi
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Joined: 14 Feb 2015, 15:49

Re: Could you do a "Bill Gates"?

Post by yogi » 27 Oct 2016, 15:21

In the United States there is such a thing as inheritance tax. It applies to any transfer of assets in excess of $250K in value - or at least that was the floor when I last checked. Gates is worth billions and arguable among the top three wealthiest people on earth. Why give half of that to the government just because you died? Keeping the Gates Charities is an excellent way to preserve the wealth, and as you say the Gates family could easily be administrators paid comfortable wages when the time comes. Yes, it's a tax dodge. This is one case where I see the sense to it. Good job Bill.

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Icey
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Joined: 18 Feb 2015, 18:13

Re: Could you do a "Bill Gates"?

Post by Icey » 27 Oct 2016, 18:17

I agree with you. What he's done's undoubtedly a good move, and it'll benefit his family and descendants forever. Someone in our family's set up a foundation for their children to live off as well, and it makes total sense, but to see it written down that Bill, Paul McCartney and others won't be leaving their children any money in their wills gives the false impression that they're not going to benefit from their parent's wealth, and there're people who've actually been like this - i.e. not leaving their families anything at all. I think that's mean, even if you live by the idea that each person makes their own way in life. I just wondered what others'd do.

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