On Monday, Warren Buffett surprised Berkshire Hathaway shareholders with a letter. In this correspondence, the 94-year-old mogul revealed his intention to make a $1.2 billion contribution to four family foundations. The recipients of this generosity include The Susan Thompson Buffett Foundation, The Sherwood Foundation, The Howard G.
Buffett Foundation, and the NoVo Foundation. His philanthropic act follows a prosperous year for Berkshire Hathaway, which has seen an increase of over 30% this year. Buffett plans to allocate 99.5% of his fortune to a charitable trust that will be managed by his children after his passing.
He has guided his children to distribute his remaining assets, with any requests for disbursement needing unanimous consent. “Time is the ultimate victor. However, it can be unpredictable – even cruel – sometimes taking life at birth or soon after, while at other times, it may wait a century or more before making its appearance,” Buffett expressed in the letter.
Buffett’s notable family foundation contribution
Considering the ages of those involved, Buffett has also identified three potential successor trustees to oversee the foundations in the event his children pass away before the funds are fully allocated. The names of these successors were not disclosed.
Within the letter, Buffett reflects on the vast changes the world has undergone during his nearly century-long life and shares an optimistic perspective for the future. Despite these transformations, Buffett remains active in his professional duties. He has also advised parents everywhere: allow your adult children to review your will prior to signing it.
“Ensure that each child comprehends the reasoning behind your decisions and the duties they will face following your demise,” Buffett stated. “If they have inquiries or suggestions, listen attentively and consider those that seem reasonable,” he added. “You don’t want your children to be left questioning ‘Why?’ regarding your estate decisions when you are no longer here to answer.”
Certified financial planner Douglas Boneparth supports Buffett’s advice about disclosing your estate plan.
“These discussions can be challenging, but they carry great significance and have the potential to strengthen bonds,” noted Boneparth, founder and president of Bone Fide Wealth in New York City.
