Paris Hilton's Grandad gives away bulk of inheritance

By Stone Martindale Dec 27, 2007, 2:19 GMT

Paris Hilton EPA/PEER GRIMM

Paris Hilton's inheritance was heavily carved into after her grandfather Barron Hilton announced plans on Wednesday to donate 97 percent of his $2.3 billion fortune to charity.

It still leaves over $22 million to be divied up by the remaining heirs.

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.

Author Jerry Oppenheimer, who profiled the Hilton family in his 2006 book "House of Hilton," has written that Barron Hilton is embarrassed by the behaviour of his jailbird granddaughter Paris and believes it damaged the family name.

Barron Hilton, who is 80, never commented publicly on Oppenheimer's remarks.

The Hilton foundation supports projects that provide clean water in Africa, education for blind children, and housing for the mentally ill.

The foundation strives "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 a reported 27 percent controlling stake in Hilton Hotels -- to the charity.

Barron Hilton challenged that will and after a 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 masterfully reaped the benefit of a "leaked" pornographic tape of her and Rick Salomon (Mr. Pam Anderson) having sex, and now "appears" all over the world hawking ware and goods for a hefty appearance fee.

In 2007, Paris spent more than three weeks in Lynnwood correctional jail in California for violating probation in a drunk-driving case.