Buffett’s Legacy and Giving
On Monday, Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, revealed his most detailed plan yet for the distribution of his fortune after his death, while also committing to continue giving away his immense wealth.
Reflections on Mortality
In a letter to shareholders, the 94-year-old reflected on the inevitability of death, mentioning how he once hoped his late first wife would outlive him to handle their wealth distribution.
“Father time always wins,” Buffett wrote. “But he can be fickle – indeed unfair and even cruel – sometimes ending life at birth or soon thereafter while, at other times, waiting a century or so before paying a visit. To date, I’ve been very lucky, but, before long, he will get around to me.”
Children’s Role in Philanthropy
In his nearly 1,300-word letter, Buffett expressed his hope that his three children, Susie, Howard, and Peter, who are now in their 60s and 70s, would live long enough to decide the fate of their father’s fortune. Upon his passing, they will be responsible for unanimously deciding how to distribute his wealth.
However, acknowledging the possibility that his children might not be able to make these decisions, Buffett has also designated three potential successor trustees, though he did not disclose their names in the letter.
Planning for the Future
Buffett noted, “The expected life span of my children has materially diminished since the 2006 pledge. I’ve never wished to create a dynasty or pursue any plan that extended beyond the children.”
He also announced the conversion of 1,600 Class A shares of his company into 2.4 million Class B shares, which carry fewer voting rights. From these shares, 1.5 million will be donated to the Susan Thompson Buffett Foundation, named after his late first wife, and 300,000 to three other foundations led by his children, totaling about $1.2 billion.
Buffett’s Giving Pledge
These donations augment the annual gifts made to the four family foundations, as well as the Bill & Melinda Gates Foundation. Since 2006, Buffett has pledged to steadily give away his wealth, which Bloomberg estimates at $150 billion. He has stated that the remainder will be given away after his death.
Estate-Planning Advice
Buffett also provided estate-planning advice to parents with wealth that might outlive them:
“When your children are mature, have them read your will before you sign it,” he wrote. “Be sure each child understands both the logic for your decisions and the responsibilities they will encounter upon your death.”
