Bill Gates says his kids will get less than 1% of his fortune because it ‘wouldn’t be a favor to them.’ Would you leave more?

0Gates explained why he’s leaving a small fraction of his fortune to his kids. But you don’t need to be leaving billions behind to consider smart strategies for coordinating inheritances.Bill Gates may be worth roughly $115 billion but, according to the Microsoft co-founder, his kids will only see around 1% of it when he’s gone.

In an interview with entrepreneur and podcast host Raj Shamani last year, Gates explained that “my kids got a great upbringing, education, but less than 1% of the total wealth because I decided it wouldn’t be a favor to them.”

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He noted that his family isn’t a dynasty and that he wants to “give them a chance to have their own earnings and success, be significant and not overshadowed by the incredible luck and good fortune I had.”

For perspective, 1% of $115 billion is still $1.15 billion. Divided amongst Gates’ three children with ex-wife Melinda French Gates — Jennifer, Rory and Phoebe — that still amounts to roughly $383 million per child. So no one’s going to go hungry.

And Gates’ inheritance plan is in line with his longstanding pledge to donate most of his fortune — and aligns with the current divide in America between inheritance expectations and reality.

Gates has made it clear that he plans to give most of his fortune away via The Gates Foundation, which he and Melinda French Gates founded in 2000.

“As I look to the future, I plan to give virtually all of my wealth to the foundation. I will move down and eventually off of the list of the world’s richest people,” he noted in a 2022 social media post.

He further explained his “obligation” to “return [his] resources to society in ways that have the greatest impact for reducing suffering and improving lives. And [hopes] others in positions of great wealth and privilege will step up in this moment too.”

Other fellow billionaires — from Melinda French Gates to Warren Buffett to Michael Bloomberg and Mark Zuckerberg — have made similar pledges to donate most of their fortunes.

Which, in fairness, is easier to do when the 1% left over still totals more than a billion dollars.

When it comes to regular Americans who don’t have billions in the bank, Empower found that while “67% of families said they want to leave an inheritance,” 34% didn’t know if they can realistically do it.

And here’s where the divide between expectation and reality comes in: Just as many people would expect Bill Gates to leave most of his fortune to his kids, a 2025 Choice Mutual report found that 66% of Americans expect — or already got — an inheritance, while the average person is counting on $334,850 when the time comes.

Contrast that with Federal Reserve Bank of Richmond data released this year that reported a median inheritance of $17,500 in 2025. Even the mean inheritance, which can be artificially inflated by wealthy family transfers, only hit $144,800.

Northwestern Mutual, meanwhile, noted that, last year, the majority of inheritances (66%) went to children or grandchildren, with spouses (40%) and charities or religious institutions (32%) rounding out the top three.

Read More: Here’s the average income of Americans by age in 2026. Are you keeping up or falling behind?

Of course, with all the talk of a $36 trillion Great Wealth Transfer in the works, it’s easy to understand why family members might be expecting more. But experts warn that most of that transfer will be concentrated among the rich, while average baby boomers with mortgages, debt or health expenses will have less to leave behind.

That’s where Gates’ advice of “explaining early on your philosophy” for inheritances to your kids, which he offered in his podcast interview, proves most helpful — because you don’t have to be handing off billions to set expectations for what your loved ones will receive when you’re gone.

One of the most important elements of successful estate planning is communicating your wishes to your loved ones while you’re here. That includes talking about inheritances.

“Families need to be clear about their own money values, current financial situation and hopes for the future,” UBS Wealth Management explained. “Articulating values around money and wealth helps decide what to pass on to children and what no longer serves the family.”

EstatePlanning.com advises tailoring inheritances to each heir based on their needs, maturity and money habits, ensuring the distribution method is flexible, offers creditor protection and considers tax pitfalls and how to avoid them.

Annuity.org, meanwhile, says to explore different ways of bequeathing inheritances based on what might be most helpful for heirs, from lump sum payments to investment accounts, trusts and even annual payments.

They also caution that you manage your own expectations so that you don’t commit to giving away more than you need to maintain your own lifestyle while you’re still here.

To that end, don’t feel bad if you can’t leave as much behind as you’d like for your heirs.

“While a smaller inheritance may not feel life-changing at first, it can still make a meaningful difference when it’s used intentionally,” Jessica Nino, a financial advisor with Edward Jones, told Moneywise in July. “Even a few thousand dollars invested thoughtfully and allowed to grow over many years can have a much larger impact than people might expect.”

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