Charity, Charity Everywhere

Here are a couple charity stories I saw last week and just had to comment on. The first details Barron Hilton's plans to give away most of his fortune:

Hotel heiress Paris Hilton’s potential inheritance dramatically diminished after her grandfather Barron Hilton announced plans on Wednesday to donate 97 percent of his $2.3 billion fortune to charity.

That wealth includes $1.2 billion Barron Hilton stands to earn from both the recent sale of Hilton Hotels Corp. — started by his father Conrad in 1919 when he bought a small hotel in Cisco, Texas — and pending sale of the world’s biggest casino company, Harrah’s Entertainment Inc.

That money will be placed in a charitable trust that will eventually benefit the Conrad N. Hilton Foundation, raising its total value to about $4.5 billion, the foundation said in a statement.

Of course the "main" part of the story is how Paris Hilton is taking a financial hit because that's what will get the attention of the Paris-crazy public. But a few thoughts on this from a different angle:

1. He's probably already given so much money to family members while he's been alive that they aren't hurting by any stretch of the imagination.

2. I'm not sure, but it may be that other family members owned part of Hilton Hotels Corp. and/or Harrah’s Entertainment, so they may be well-off that way as well.

3. Yeah, but 3% of $2.3 billion is still $69 million -- not exactly chump change. Seems like little Paris won't starve.

4. Hey, the guy just GAVE AWAY over $2 billion! Can't someone just give him credit for being generous?

And speaking of generous, here's a piece on two brothers who gave out cash at a New York mall on Christmas Eve:

Shoppers got a Christmas Eve surprise on Monday when a pair of brothers handed out $100 bills at a mall on Long Island, New York.

Police responded to a call from security staff at the Sunrise Mall in the town of Massapequa, concerned that the give-away might create a scene or involve counterfeit bills.

Instead, officers found a simple case of Christmas charity where calm prevailed as the businessmen, aged 45 and 41, gave out the money at the entrance to the shopping centre, police said.

"These two brothers say they do this every year. They say they've been blessed and just want to give something back," Detective Sergeant Anthony Repalone said.

"They gave it to people who they thought needed it. The people were very appreciative."

Yeah, you try to be generous and they call the cops on you.

There wasn't a stampede for the $100 giveaways, but if Barron Hilton showed up at a mall and started handing out $1 million at a pop, THEN there would be a big scene!!! ;-)

Comments

[Ed]

Although I think that giving to charity is a great thing, I think people need to keep in mind that just because one is donating their fortune to a charitable remainder trust, does not mean that their heirs are not going to be reaping any benefits from the wealth. One can place all kinds of crazy stipulations on a CRT. And in my opinion, the main thing to keep in mind is that the principal goes to charity….. and the income goes to beneficiaries.
Normally there will be minimal distribution requirements that the CRT must make to the beneficiaries… i.e. prob. Paris and the rest of the family…. And the CRTs are often required to maintain the principal… So I just see it as Grandpa’s way of making sure his wealth is persevered…. While giving the family a little… giving society a little… and giving the government none when he dies due to that massive charitable deduction!

5 – 10 Percent of 2.3 Billion is still a couple of million a year in income…. Not to mention it is going to the Conrad Hilton Foundation…. Who knows who is lucky enough to get the management fees from that beast.

[MonkeyMonk]

I think it's great that Barron Hilton is giving so much of his fortune to charity. This is one of the nice side-effects of the estate tax . . . people still in life are more likely to give a large chunk of money to a cause they support rather than have the government take a big chunk of it upon their death.

It should also be noted that Paris earns a good $20 million annually entirely on her own.

[Lord]

You have to ask who is going to manage the charity. The rich know the real power is not in ownership but in control.