Paris loses out: Hilton fortune pledged to charity

[savafan]

http://www.reuters.com/article/enter...BrandChannel=0

By Michelle Nichols

NEW YORK (Reuters) - U.S. 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 (1.16 billion pounds) 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.

Barron Hilton, chairman of the foundation, intends "to contribute 97 percent of his entire net worth, estimated today at $2.3 billion, including the created trusts, at whatever value it is at the time of his passing," the foundation said.

Paris Hilton was not immediately available for comment on her grandfather's plans for his fortune.

Jerry Oppenheimer, who profiled the Hilton family in his 2006 book "House of Hilton," has said Barron Hilton is embarrassed by the behaviour of his socialite granddaughter Paris and believes it has sullied the family name.

Barron Hilton, who is 80, has not commented on Oppenheimer's remarks.

The foundation supports projects that provide clean water in Africa, education for blind children, and housing for the mentally ill. Its aims, based on Conrad Hilton's will, are "to relieve the suffering, the distressed and the destitute."

"Speaking for the family as well as the foundation, we are all exceedingly proud and grateful for this extraordinary commitment," said Steven Hilton, one of Barron's sons and president and chief executive of the foundation.

Conrad Hilton established the foundation in 1944 and when he died in 1979 left virtually all of his fortune -- including, according to media reports at the time, a 27 percent controlling stake in Hilton Hotels -- to the charity.

But Barron Hilton challenged the will and after a nearly decade-long legal struggle reached an out-of-court settlement to split ownership of the shares with the foundation in 1988, The New York Times reported.

The hotel group was sold for $20 billion in October to private equity firm Blackstone Group, while the acquisition of Harrah's -- of which Barron Hilton was a board member until 2006 -- is due to be completed by Apollo Management and TPG Capital in early 2008.

Paris, a symbol of celebrity privilege in America, gained notoriety in 2003 when a home video of her having sex with a boyfriend was posted on the Internet.

She parlayed her notoriety, fuelled by tabloid headlines about her partying lifestyle, into a celebrity career that has included a reality television show, a book, a music album, and film roles. Then this year she spent more than three weeks in jail for violating probation in a drunk-driving case.

[Blimpie]

[Sea Ray]

Conrad Hilton established the foundation in 1944 and when he died in 1979 left virtually all of his fortune -- including, according to media reports at the time, a 27 percent controlling stake in Hilton Hotels -- to the charity.

But Barron Hilton challenged the will and after a nearly decade-long legal struggle reached an out-of-court settlement to split ownership of the shares with the foundation in 1988, The New York Times reported.

Ironic that this Hilton is doing the same thing he sued his father's estate for in 1979. It wouldn't surprise me in the least if Paris or her parents challenge this as well, as keeping with the Hilton tradition...Too much money at stake here to not challenge. What a screwed up family.

U.S. 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 (1.16 billion pounds) fortune to charity.

I guess this leaves $69mill for the rest of the family, government and lawyers to grapple over. This may be more entertaining than Paris' reality show.

[HumnHilghtFreel]

First off, let me say that Barron Hilton is a really awesome name.

Now, I think it's great that he's making such a sizable donation to charity, but I can't imagine doing that to my family. Even though what they will be getting is still more than most people will ever see in a lifetime.

[GoReds33]

First off, let's realize that Paris and Nicky Hilton do not need money. Paris has more money than she'll ever need. Nicky is about like her sister. She has tons of endorsement deals.

All that being said, this is a lousy thing he is doing. If nothing else, Paris brought more fame to the Hilton hotel line. She has done some stupid things, but that doesn't reflect badly on the company. I hope they sue him, and win. 50-50 would have been a better deal.

[Sea Ray]

First off, let's realize that Paris and Nicky Hilton do not need money. Paris has more money than she'll ever need. Nicky is about like her sister. She has tons of endorsement deals.

All that being said, this is a lousy thing he is doing. If nothing else, Paris brought more fame to the Hilton hotel line. She has done some stupid things, but that doesn't reflect badly on the company. I hope they sue him, and win. 50-50 would have been a better deal.

Paris has amassed a fortune of her own but I wouldn't say she doesn't need the money. She can go through money in ways unheard of for you and me.

I disagree that she's brought fame to the Hilton name. I think she's brought trash to the name but I may be an old fogey too.

[GoReds33]

Paris has amassed a fortune of her own but I wouldn't say she doesn't need the money. She can go through money in ways unheard of for you and me.

I disagree that she's brought fame to the Hilton name. I think she's brought trash to the name but I may be an old fogey too.

I'm just saying that I don't think she did anything bad to the business. Sure the family's rep may have taken a hit, but that doesn't mean the hotel business took a hit.

[WMR]

I've heard this described as one big tax shelter. The family still has controlling interest of the charity's board... wouldn't surprise me.

[macro]

And to think that they got all this money by letting people sleep in their buildings?

[Redlegs23]

All that being said, this is a lousy thing he is doing.

Yes. What a terrible person giving all this money to charity while still giving his family about 69 million dollars. He should be locked up.

[AmarilloRed]

I could use 69 million. How about the rest of you?

[Screwball]

Yes. What a terrible person giving all this money to charity while still giving his family about 69 million dollars. He should be locked up.

Exactly. Giving a boatload of money to charity is the opposite of a lousy thing to do.

[Caveat Emperor]

I could use 69 million. How about the rest of you?

Even assuming all she did was put that money into a normal, no frills, savings account, she'd stand to earn close to $3.5 million dollars per year in interest alone.

[GoReds33]

Yes. What a terrible person giving all this money to charity while still giving his family about 69 million dollars. He should be locked up.

No, that's not what I mean. I mean that he is giving it away because of Paris's problems. I understand she has made mistakes, but give her a second... make that a third chance. She was only 19 in her original problem. She isn't the only person in the world to make mistakes. I know if my relatives were rich, and I made a mistake, they would atleast take time to look at my point of view, not take away my inheritance.

[Yachtzee]

If I were super-mega-rich and my children and grandchildren were already wealthy by their own accounts, I would probably do the same thing. Paris and her family have plenty of wealth already and aren't likely to be hurting for income in the near future, so why not give the money to a foundation to be used for good causes.

Here's an interesting inheritance: My high school history teacher was a member of a prominent American family. His family came over on the Mayflower and included William Dawes, who participated in Paul Revere's midnight ride, and a US Vice President. According to my teacher, his grandfather was fabulously wealthy and donated much of his estate to Northwestern University. However, he also set up a trust in which his descendants would receive $1,000,000 upon making $1,000,000 on their own (this was set up when $1,000,000 really meant something).