Warren Buffett may be one of the world’s wealthiest people, but on Monday he shared a piece of financial advice “for all parents,” regardless of their wealth.
“When your children are mature, have them read your will before you sign it,” he urged in a letter to Berkshire Hathaway shareholders on Monday. Buffett encouraged his fellow investors to discuss their wills with their beneficiaries and make changes that they think are reasonable.
“Over the years, Charlie and I saw many families driven apart after the posthumous dictates of the will left beneficiaries confused and sometimes angry,” Buffett wrote, referring to Charlie Munger, his longtime business partner who died last November at the age of 99. “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?”
Buffett’s advice came alongside an announcement that he had donated more than $1 billion of Berkshire stock to his late first wife’s and children’s charitable foundations. The 94-year-old has pledged to donate 99% of his $150 billion fortune to charitable causes within his lifetime or shortly after his death.
“I’ve never wished to create a dynasty or pursue any plan that extended beyond the children,” he wrote. However, Buffett on Monday said he had identified “three potential successor trustees” to take over the task of donating his wealth should his three children, the youngest of whom is 66, fail to do so within their lifetimes.