On November 25, 2024, Warren Buffett shared his reflections in a detailed letter, addressing his philanthropic philosophy and legacy planning.
Here are a few key takeaways:
1. Read Wills, Avoid Conflicts
He advocates for reading and understanding wills while living to prevent posthumous conflicts:
I have one further suggestion for all parents, whether they are of modest or staggering wealth. 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. 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. Over the years, I have had questions or commentary from all three of my children and have often adopted their suggestions. There is nothing wrong with my having to defend my thoughts. My dad did the same with me.
I change my will every couple of years – often only in very minor ways – and keep things simple. Over the years, Charlie and I saw many families driven apart after the posthumous dictates of the will left beneficiaries confused and sometimes angry. 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. What could be more satisfying?
2. Other interesting nuggets
Children should receive enough wealth to explore their ambitions without limitations, yet not so much that it diminishes their drive or sense of purpose.
These bequests reflected our belief that hugely wealthy parents should leave their children enough so they can do anything but not enough that they can do nothing.
Emphasizes modest living despite immense wealth and encourages redistributing excess wealth to create opportunities for the less fortunate.
Buffett praises his children, Susie Jr., Howie, and Peter, for their philanthropic work. They now oversee significant philanthropy, managing teams and distributing vast sums responsibly.
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