The NY Post reports that in November, just before the holiday season, Warren Buffett, the CEO of Berkshire Hathaway, surprised shareholders by sharing a personal message. In it, he provided details about how his vast fortune would be managed after his passing and offered some thoughtful advice to others on how to handle the distribution of their own wealth.
The letter, which was posted on the website of his $1 trillion company, revealed that Buffett, at 94 years old, would be donating approximately $1.1 billion of his Berkshire shares to the four foundations established by his family. Additionally, he stated that his three children would be in charge of distributing the remainder of his assets after his death.
The tone of the message suggests that the so-called “Oracle of Omaha” is acknowledging the inevitability of his mortality.
“Father time always wins,” Buffett remarked. “But he can be fickle — indeed unfair and even cruel — sometimes ending life at birth or soon thereafter while, at other times, waiting a century or so before paying a visit. To date, I’ve been very lucky, but, before long, he will get around to me.”
Buffett also highlighted the ages of his children—71, 69, and 66—pointing out that they might not live long enough to oversee the distribution of his estimated $150 billion fortune. As a result, he has designated three potential trustees who could step in to carry out his wishes after his passing.
He elaborated on the reasoning behind his decision that all foundation-related choices should be made by unanimous agreement, explained how he keeps his will simple and updates it regularly, and offered some practical advice for others as they plan their estates.
“I have one further suggestion for all parents, whether they are of modest or staggering wealth,” he shared.
“When your children are mature, have them read your will before you sign it.”
“Be sure each child understands both the logic for your decisions and the responsibilities they will encounter upon your death,” he continued.
“If any have questions or suggestions, listen carefully and adopt those found sensible. You don’t want your children asking ‘Why?’ in respect to testamentary decisions when you are no longer able to respond.”
Buffett went on to discuss how, over the years, he and his longtime business partner Charlie Munger, who passed away in November 2023, had observed the painful consequences of poorly handled estate plans. He noted how many families had been torn apart when the instructions in a will left beneficiaries feeling confused and sometimes angry.
In these situations, he explained, “Jealousies, along with actual or imagined slights during childhood, became magnified, particularly when sons were favored over daughters, either in monetary ways or by positions of importance.”
“Charlie and I also witnessed a few cases where a wealthy parent’s will that was fully discussed before death helped the family become closer,” Buffett added. “What could be more satisfying?”
{Matzav.com}