In November, ahead of the holiday season, Berkshire Hathaway CEO Warren Buffett issued an unexpected message to shareholders, offering an update on what will happen to his vast fortune after his death. and offered some advice on how to pass on wealth to others. .
In a letter posted on the $1 trillion holding company's website, Buffett, 94, announced he would donate about $1.1 billion in Berkshire stock to four family foundations, with the remaining holdings held by three people. He said the children would be responsible for distributing it in stages. after his death.
The tone of the letter suggests that the “Oracle of Omaha” senses his own mortality.
“Father time always wins,” Buffett writes.
“But he can be fickle, downright unfair and even cruel, sometimes ending his life at birth or soon after, and other times waiting up to 100 years before visiting. I was very lucky, but eventually he would approach me.”
Buffett noted that his children, now ages 71, 69 and 66, may not live long enough to distribute his estimated $150 billion fortune among themselves, so all Three potential trustees were appointed who could intervene to effectuate his wishes to distribute his assets. property after his death.
He explained the reasoning behind his policy that all foundation decisions are made unanimously, saying he updates his will every few years and keeps it simple, and that others Said offered some words of wisdom when planning one's own affairs.
“I have one more suggestion for all parents, whether you have modest or extraordinary wealth,” he wrote.
“Once your children are adults, have them read your will before you sign it.”
“Make sure each child understands both the logic of your decision and the responsibility they face in the event of your death,” he continued.
“If you have questions or suggestions, listen carefully and take what you think is wise. You don't want your kids to ask 'why?' Regarding testamentary decisions in case of inability to respond. ”
Buffett, along with his long-time business partner and friend Charlie Munger, who passed away in November 2023, said that after his will's post-death instructions left beneficiaries confused and sometimes angry. “I have seen many families separated,” he said.
In such cases, “jealousy was compounded on top of real or imagined contempt in childhood, especially when sons received preferential treatment over daughters in financial matters or important positions.'' said.
“Charlie and I have seen several cases in which well-discussed wills of wealthy parents during their lifetimes have strengthened family ties,” Buffett added.
“What could be more satisfying?”
*This article was published in November 2024.
