Billionaire Warren Buffett shared his thoughts on the future of his vast wealth and offered advice on inheritance in a message to his company’s shareholders.
Berkshire Hathaway’s CEO unveiled the wealth distribution plan in a letter posted on the company’s website. Buffett announced that $1.1 billion in Berkshire stock will be donated to four family foundations, with the remaining shares to be distributed in stages to his three children after his death.
The 94-year-old’s message had an introspective tone that reflected the inevitability of death. “A father’s time always wins. But he is a fickle character, downright unfair and even cruel, sometimes ending his life at birth or soon after, and sometimes living for 100 years before visiting.” “I have been very lucky so far, but eventually he will come to me,” he wrote.
Mr. Buffett acknowledged the challenges his children may face as he ages – now 71, 69 and 66 – and said his wishes would be affected if his children were unable to carry out their duties. He said he has appointed three potential trustees to ensure respect. “Three candidates have been nominated to replace me on the board, all of whom are well known to my children and meaningful to all of us. They are all slightly younger than my children,” Buffett said. he wrote.
He emphasized his desire for decisions within the Foundation to be made unanimously and shared his approach to simplifying his will, which he regularly reviews.
Buffett also offered advice to parents dealing with the sensitive topic of estate planning. He said: Once your children are adults, have them read your will before signing it. ”
He stressed the importance of transparency and urged parents to explain their decisions to avoid misunderstandings. “Make sure each child understands both the logic of your decisions and the responsibility they face in the event of your death. If they have questions or suggestions, listen carefully and be wise. Please adopt the opinion that you think is correct.You don’t want your children to ask you “why?” Regarding testamentary decisions in case of inability to respond. ”
Looking back on decades of observations, Buffett pointed out how unresolved issues stemming from wills are causing discord among families. He recounted instances he and his late business partner Charlie Munger witnessed where miscommunication and feelings of unfairness led to rifts in their relationships.
Buffett wrote, “In addition to real or imagined contempt in childhood, jealousy was compounded, especially when sons received preferential treatment over daughters, especially in financial matters or in important positions.” Ta.
But he also highlighted success stories of openly discussing wills that brought families closer and united.
“Charlie and I have witnessed several cases in which well-discussed wills between wealthy parents during their lifetimes helped strengthen family bonds. What could be more satisfying than that?” Buffett said. added.
According to Forbes, as of this writing, the Berkshire Hathaway CEO’s net worth was $143 billion.
