Berkshire Hathaway released a latest statement this week detailing the planning of Buffett's massive estate after his death. But the reality may not be as simple as we think? (Background: Buffett publicly announced his estate plan '99.5% all donated to family charitable funds', urging all parents to do one thing before they die) (Background Supplement: Stock God Buffett: Bitcoin 'is just gambling' delusions of wealth; banks may continue to collapse) The 94-year-old chairman of Berkshire Hathaway announced a latest statement to shareholders this week, detailing his wealth plan after his death. Buffett has arranged his affairs. The document shows that Buffett again converted 1,600 Class A shares into 2,400,000 Class B shares, and donated these Class B shares to four family foundations: 1,500,000 shares were donated to the Susan Thompson Buffett Foundation, while the remaining 300,000 shares were donated to the Sherwood Foundation, the Howard G. Buffett Foundation, and the NoVo Foundation. He indicated that the bequest reflects the beliefs of him and his wife: extremely wealthy parents should provide enough resources for their children to achieve any goals, but not so much that they become idle. Extended Reading: Buffett publicly announced his estate plan '99.5% all donated to family charitable funds', urging all parents to do one thing before they die. Buffett calls on other wealthy individuals to donate. In fact, as early as 2006, Buffett, together with Microsoft co-founder Bill Gates and his wife, initiated the 'Giving Pledge', calling on wealthy individuals worldwide to engage in charity and donations, many of whom have committed to donating more than half of their fortunes to charitable causes. Buffett even boldly stated that he would 'donate all of his wealth' after his death. To avoid taxes? Control all in his children's hands? However, can wealthy individuals like Buffett really be so selfless and give away the wealth they have earned throughout their lives? Things may not be as simple as we think. The donation tax avoidance system in the United States Some may ask, if Buffett really wants to leave money to his children, why not give it to them directly, but instead achieve it through charity? If we consider the U.S. estate tax system, we can understand why Buffett does this. The U.S. has been imposing estate taxes since the 18th century, and in the mid-1990s, the tax rate reached an astonishing 77%. Even today, the estate tax rate for estates over $2.5 million still reaches 50%, so charitable donations have become a mainstream legal tax avoidance method. According to U.S. tax law, charitable foundations must spend 5% of their total assets each year, but they are not restricted on where to spend it, and the income generated is tax-free. Therefore, if you use the foundation's money for investment, you might even make more money... Most of Buffett's estate is donated to family charitable foundations. Of course, donating to general charitable organizations is also a good deed, but Buffett's family charitable foundation will receive most of his wealth, and his three children will be the trustees of the foundation. Since there is no requirement for these large funds to pay a specific amount for charity each year, they can only allocate a small portion for charity and use expenses to reimburse their children's living expenses, whether for personnel expenses of operating the foundation, commuting by plane, renting venues for parties, or purchasing artworks... all can be reimbursed under the foundation's name. In this way, Buffett can avoid taxes while gaining a good reputation, pass wealth to his children, and prevent individual children from quickly spending all the money. It's a win-win situation. (Other uses may also include donations to prestigious schools, thus securing future admission rights for their children; influencing political situations through the foundation's think tanks, such as the Rockefeller Foundation, which has produced three U.S. Secretaries of State...) After understanding this, when you hear these wealthy individuals say that money is not important to them and they want to give back to society... doesn't it sound particularly ironic? Related Reports: Japanese stock market hits a 33-year high! Why does it continue to soar, and even Buffett is increasing investments? Buffett invests $10 billion in Japan's five major trading companies; Munger: A once-in-a-century opportunity, money is too easy to make! Buffett is smiling! Berkshire's investment performance over the past five years has outperformed Bitcoin. "99% of Buffett's wealth goes to family charitable foundations, is it true charity, or a clever tax avoidance strategy?" This article was first published on BlockTempo (the most influential blockchain news media).