Barron Hilton - Hilton Family Fortune

Hilton Family Fortune

In 1979, Barron Hilton's father, Conrad Hilton died, leaving $500,000 USD each to his two surviving siblings and $10,000 USD to each of his nieces and nephews and his daughter Francesca. The bulk of his estate was left to the Conrad N. Hilton Foundation, which he established in 1944. Although Barron Hilton inherited Hilton Hotels Corporation, the company his father had created, and was in charge of as President, Chief Executive Officer, and Chairman of the Board of Directors at the time of his father's death, Barron contested his father's will. A settlement was reached; of the 13.5 million shares of company stock owned by Conrad Hilton that constituted the bulk of the Hilton family fortune, Barron Hilton would receive 4 million shares, the Conrad N. Hilton Foundation would receive 3.5 million shares, and the remaining 6 million shares would be placed in the W. Barron Hilton Charitable Remainder Unitrust, of which Barron is the executor. Upon Barron Hilton's death, the Unitrust assets will be transferred to the Conrad N. Hilton Foundation. Barron sits on the Board of Directors of the Foundation as Chairman and his son, Steven M. Hilton, is the President and Chief Executive Officer.

On December 25, 2007, Hilton announced that, in addition to donating the funds found in the W. Barron Hilton Charitable Remainder Unitrust, upon his death, he will follow his father's footsteps by leaving about 97% of his estate, estimated in 2007 at $2.3 billion, to the Conrad N. Hilton Foundation. Included was an immediate pledge of $1.2 billion, the proceeds of the sale of Hilton Hotels Corporation and Harrah's Entertainment Inc., which was placed in a Charitable Remainder Unitrust that will be donated to the Foundation upon Hilton's death at whatever value the trust is worth at that time. The remainder of the funds that constitute Hilton's pledge to donate 97% of his estate will come from his $1.1 billion in personal assets. By leaving the majority of his estate to the Foundation, Barron is donating not only the fortune he has amassed on his own as well as the proceeds of the sale of the company that created the Hilton family fortune, Hilton Hotels Corporation; but he is also returning the Hilton family fortune amassed by his father, Conrad, to the Conrad N. Hilton Foundation, where it would have gone over 30 years ago had Barron not contested his father's will. Barron said he is proud to follow his father's example, and his son Steven expressed a similar sentiment.

The remaining 3% of his estate will be distributed to his heirs. Jerry Oppenheimer, who profiled the Hilton family in House of Hilton (2006), has said Barron Hilton is embarrassed by his granddaughter Paris' behavior and believes it has sullied the family name.