The next generation of Buffetts is poised to become one of the biggest forces in philanthropy

OMAHA, Neb.-- The next generation of Buffetts — Howard, Susie and Peter — is poised to become one of the most powerful forces in philanthropy when their 94-year-old father, the legendary businessman and leader of Berkshire Hathaway, Warren Buffett, eventually passes away.

But it wasn't always going to be that way.Buffett announced in June that he would donate his fortune, now valued at nearly $144 billion, to a charitable trust managed by his three children when he dies, instead of giving it to the Gates Foundation, as he indicated 18 years ago.The next generation of Buffetts will then have 10 years to give the money away, Warren Buffett said.

In the meantime, the elder Buffett continues to make huge annual donations to the Gates Foundation and his four family foundations, which will continue throughout his lifetime.He first mentioned plans for a new charitable trust in November.

Howard Buffett told The Associated Press he's learned what his father told him and his siblings about philanthropy was true: “It’s not so easy to give away money if you want to do it smart, if you want to be intelligent about it.” The middle Buffett child, Howard said his father is as sharp as ever and that he hopes he lives a long time, adding: "It’s pretty amazing that he’s giving us this opportunity.”Buffett has entrusted Bill Gates and Melinda French Gates with significant annual gifts to their foundation since 2006 — a remarkable $43 billion to date .“Wealthy people don’t tend to give their money to other people to give away,” said James Ferris, founding director of The Center on Philanthropy and Public Policy at the University of Southern California.

But many of the wealthiest people are also hesitant to hand over their fortunes to the next generation over concerns that it hampers their ingenuity, he said.Ferris thinks the story of Buffett’s changing philanthropic intentions is a positive one.

“It shows how a donor is making choices and is adapting to ...