Bill Gates' Children Will 'Only' Inherit $10 Million – 0.0077% Of His Net Worth: 'Leaving Kids Massive Amounts Of Money Is Not A Favor'

Bill Gates, who dropped out of Harvard and launched a global tech empire, is synonymous with immense wealth. With a net worth of over $130 billion, people would assume that his children would inherit a substantial portion, securing their spots among the world’s elite. However, Gates has a different vision for his legacy.

Don't Miss:

• Warren Buffett flipped his neighbor's $67,000 life savings into a $50 million fortune — How much is that worth today?
• Can you guess how many retire with a $5,000,000 nest egg? – How does it compare to the average?

Gates announced in a 2011 interview with The Daily Mail that his three children would "only" inherit a “minuscule portion” of his fortune. A mere $10 million each, he specified. This decision wasn’t a spur-of-the-moment whim but a conscious choice rooted in his belief in the importance of hard work and purpose.

The news of such a small inheritance from one of the richest men in the world spurred widespread discussion about wealth, inheritance, and parental responsibility among the ultra wealthy. Gates’ position became a topic of conversation again during a 2013 Reddit “Ask Me Anything” (AMA) session, where a user commented on the philanthropist’s influence on other wealthy individuals:

“Many wealthy people I know point to Bill Gates as their idol. Not for his Microsoft days but for his philanthropy. He also simultaneously killed many of my friends’ hundred million dollar trust funds after their parents discovered that Bill was only leaving $10 million for his children.”

Trending: Will the surge continue or decline on real estate prices? People are finding out about risk-free real estate investing that lets you cash out whenever you want.

In response, Gates affirmed his stance:

“I definitely think leaving kids massive amounts of money is not a favor to them. Warren Buffett was part of an article in Fortune talking about this in 1986 before I met him and it made me think about it and decide he was right. Some people disagree with this but Melinda and I feel good about it.” 

Despite their divorce in 2021, Bill and Melinda have maintained their commitment to their children's inheritance plans, which remain unchanged. Speculation arose regarding potential adjustments to their children’s inheritance due to the absence of a prenuptial agreement, but ultimately, their plans have remained consistent. 

Gates’ approach to inheritance is not unique among the ultra wealthy. Other billionaires have expressed similar views:

• Warren Buffett plans to give away 99% of his wealth, leaving relatively modest sums to his children.
• Mark Zuckerberg and Priscilla Chan have pledged to give away 99% of their Facebook shares over their lifetimes.
• Sting has stated that he won’t leave much money to his six children, believing that inherited wealth would be an ‘albatross round their necks.'

See Also: Are you richer than most people you know? Here’s the net worth you need at every age to be above average.

Opinions on this topic vary. Some argue that completely disinheriting children can lead to resentment and family discord. Others believe a moderate inheritance can provide a safety net without discouraging personal achievement.

A Merrill Lynch and Age Wave study found that two-thirds of Americans over 55 now prefer to distribute part of their estate (on average 30%) while still alive. This allows them to help meet family members’ ongoing needs and enjoy seeing the benefits of their contributions. 94% of Americans over 55 say the definition of a “life well lived” is “having family and friends that love me,” while only 10% define it as “accumulating a lot of wealth."

It’s hard to imagine getting backlash over deciding to leave your kids $10 million, but perspectives shift when discussing billionaire wealth. For most people, deciding how to pass on wealth is a deeply personal choice. From the ultra wealthy, like the Hermes heir who made headlines for wanting to adopt his gardener, to those with more modest means, everyone faces the question of legacy. Having a plan can bring peace of mind regardless of your financial situation. A financial advisor can help you create a strategy that aligns with your goals and values.

Read Next:

• Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here’s how you can earn passive income with just $100.
• Can you guess how much the average retirement account balance is? Here’s a hint — it’s only slightly more than a year’s worth of expenses.