New Delhi: Tabloid favourite Paris Hilton might have inherited the family surname, but when it comes to the family fortune, her grandfather has other plans.

Paris' grandfather, hotelier Barron Hilton, has decided to donate 97 per cent of his $2.3 billion fortune to charity, dramatically reducing her inheritance.

The contribution is to come from the sale of Hilton Hotels Corp, started by Conrad Hilton in 1919, and the pending sale of Harrah's Entertainment Inc, the world’s largest casino company, and is the largest in the foundation's history and will bring its value to about $4.5 billion, reported news agency Reuters.

Benefiting from it will be Barron's father's charitable trust – the Conrad N Hilton Foundation, that provides education to the blind and houses the mentally-disabled.

Conrad Hilton had established the foundation in 1944 and left virtually all of his fortune including, according to media reports at the time, a 27 per cent 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.

According to Jerry Oppenheimer, who wrote a biography of the Hilton House of Hilton (2006), Barron Hilton is embarrassed by the behavior of his socialite granddaughter and believes it has sullied the family name.

Hilton has been a staple for gossip columns because of her anctics that include sex tape scandals and 23 day-long stint in jail for drunk driving. 80-year-old Barron Hilton did not comment on Oppenheimer's remarks.

Paris Hilton was not immediately available for comment on her grandfather's plans for his fortune. The hotel group was sold for 20 billion dollars 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.

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

With inputs from Reuters