A:

Warren Buffett's estate is worth tens of billions.

Most of the Buffett estate is already earmarked for charity. The famous investor plans to donate at least $37 billion to the Bill and Melinda Gates Foundation for the advancement of health and educational causes around the world. Buffett has left considerably less for his children, reflecting his expressed interest in promoting self-sufficiency and strong work ethics among his family. The bequests to them include a small amount of Berkshire Hathaway stock and some real estate properties.

Buffett is a proponent of a bigger estate tax on wealthy individuals. Alongside George Soros, he has called for a dramatic increase in that tax rate. His decision to contribute the majority of his investments to charity is a reflection of his personal beliefs about wealth and taxes.

On the subject of how his estate should be managed after his death, Buffett hopes to contribute his stock to charitable causes and have remaining cash portion invested in passively managed index funds that are relatively safe. Having gained his wealth from stocks, Buffett has said he believes the value of his estate would be best maintained using the stock indexes – specifically, those mirroring the S&P 500.

RELATED FAQS
  1. What's the largest charitable donation Warren Buffett ever made?

    Learn about Warren Buffett's biggest financial contributions and how his estate is to be divided between charity and Buffett's ... Read Answer >>
  2. What is Warren Buffett's annual salary at Berkshire Hathaway?

    Learn more about how much Warren Buffett receives in salary and how he continues to stay involved with his company and his ... Read Answer >>
  3. How does Warren Buffett choose his stocks?

    Investors have long praised Warren Buffett’s ability to pick great companies to invest in. Here are the key considerations ... Read Answer >>
  4. Why does Warren Buffett largely avoid investing in the technology sector?

    Learn why Warren Buffett has traditionally avoided investing in technology companies and read about his value investing principles ... Read Answer >>
  5. How did Warren Buffett get started in business?

    Warren Buffett may have been born with business in his blood, but it was a brush with Benjamin Graham that put him on his ... Read Answer >>
Related Articles
  1. Insights

    Warren Buffett: The Road To Riches

    Find out how he went from selling soft drinks to buying up companies and making billions of dollars.
  2. Personal Finance

    Warren Buffett's frugal, so why aren't you?

    Warren Buffett, the Oracle of Omaha, has a net worth in the billions, but his lifestyle is not as rich as you may think.
  3. Investing

    Why Warren Buffett Envies You

    The Oracle of Omaha can move over - there's a new investor in town.
  4. Insights

    4 Reasons Buffett's Portfolio Is Irrelevant to Today's Investors (AXP, KO)

    Find out why investors should not try to emulate Warren Buffett's stock portfolio and why they could not achieve his same level of success.
  5. Managing Wealth

    Top 5 Positions in Warren Buffett's Portfolio

    Find out which stocks hold the top five positions in Warren Buffett's portfolio.
  6. Investing

    Look at Warren Buffett's First Tax Return at Age 14!

    The "Oracle of Omaha" Warren Buffett was a diligent businessman even at the age of 14, as his 1944 tax return shows.
  7. Managing Wealth

    Warren Buffett's Bear Market Maneuvers

    This esteemed investor rarely changes his long-term investing strategy, no matter what the market does.
  8. Investing

    6 Successful Investments Warren Buffett Passed On (GOOGL, XRX)

    Even Warren Buffett, the greatest investor of our time, has made many unforced errors. Investors can learn from his mistakes of omission and commission.
  9. Insights

    Economist Guide: 4 Lessons Warren Buffett Teaches Us

    Learn how Warren Buffett's most famous investment advice can teach investors to manage their own money and practices.
RELATED TERMS
  1. Estate Planning

    Estate planning is the preparation of tasks that serve to manage ...
  2. Taxable Estate

    Taxable estate is the portion of a deceased person's net assets ...
  3. The Oracle Of Omaha

    The Oracle of Omaha is a nickname for Warren Buffett, who is ...
  4. Berkshire Hathaway

    Berkshire Hathaway is a holding company for a multitude of businesses, ...
  5. Gifting Phase

    The gifting phase is an investment stage at which individuals ...
  6. Real Estate

    Real estate is property made up of land as well as anything on ...
Trading Center