Warren Buffett sent a surprise letter to Berkshire Hathaway shareholders on Monday. In the letter, the 94-year-old investor announced a $1.2 billion donation to four family foundations. The beneficiaries include The Susan Thompson Buffett Foundation, The Sherwood Foundation, The Howard G.
Buffett Foundation, and the NoVo Foundation. Buffett’s decision comes amidst a successful year for Berkshire Hathaway, which has gained over 30% this year. Buffett is donating 99.5% of his wealth to a charitable trust that will be overseen by his children after his death.
He has instructed his children to give away his remaining wealth, with disbursement requests requiring unanimous agreement. “Father Time always wins. 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,” Buffett wrote.
Buffett’s significant family foundation donation
Due to the advancing ages of everyone involved, Buffett has also named three potential successor trustees to oversee the foundations should his children pass away before the money is fully disbursed. The successors were not named.
In the letter, Buffett also reflects on how the world has changed during his almost 100 years on the planet and offers a hopeful outlook for the future. Despite the changes, Buffett did not step down from any work-related responsibilities. Buffett also has advice for all parents: let your adult children 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,” Buffett wrote. “If any have questions or suggestions, listen carefully and adopt those found sensible,” Buffett added. “You don’t want your children asking ‘Why?’ in respect to testamentary decisions when you are no longer able to respond.”
Certified financial planner Douglas Boneparth agreed with Buffett’s advice to reveal your estate plan.
“These are tough conversations to have, but they’re meaningful and can strengthen relationships,” said Boneparth, who is founder and president of Bone Fide Wealth in New York City.
