Buffett Reveals Most Detailed Estate Plan: '99.5% Will Be Donated to Family Charity Fund', Urges All Parents to Do One Thing Before They Die

Berkshire Hathaway released a latest statement this week, detailing the massive estate planning of Buffett after his death. (Background: Black Swan Fund Warning: U.S. stocks, Cryptocurrency, gold 'will flash crash' by the end of the year?) The Berkshire Hathaway managed by the stock god Buffett released a latest statement this week, detailing his posthumous wealth plan and sharing his money values, which has gained wide followings in the community. In today's announcement, Warren E. Buffett announced the conversion of 1,600 Class A shares into 2,400,000 Class B shares, and donated these B shares to four family foundations: 1,500,000 shares to The Susan Thompson Buffett Foundation, and the remaining 300,000 shares to The Sherwood Foundation, The Howard G. Buffett Foundation, and the NoVo Foundation. Mr. Buffett made the following statement to Berkshire Hathaway shareholders: Today's donation will reduce the number of Berkshire Hathaway Class A shares I hold to 206,363 shares, a decrease of 56.6% since I made the donation commitment in 2006. In 2004, before my first wife Susie passed away, we jointly owned 508,998 Class A shares. Over the years, we both believed that she would outlive me and eventually distribute most of our wealth. However, things turned out differently. When Susie passed away, her estate was about $3 billion, about 96% of which was donated to our foundation. In addition, she left each of our three children $10 million, the first time we had given such a large gift to any child. These bequests reflect our belief that extremely wealthy parents should give their children enough resources to achieve any goal, but not so much that they are idle. Susie and I have long encouraged our children to participate in small-scale charitable activities, and we are satisfied with their passion, diligence, and achievements. However, at the time of her death, they were not ready to handle the staggering wealth generated by Berkshire stock. However, since I made the lifelong donation commitment in 2006 and later expanded the scope of the commitment, their charitable activities have been significantly enhanced. Today, my children have exceeded our expectations. After my death, they will be fully responsible for gradually distributing all of my Berkshire holdings, which currently account for 99.5% of my wealth. Time is ruthless, but it is sometimes unusually fickle—unfair or cruel. Sometimes life ends shortly after birth, while other times it may last a century. I have been very lucky so far, but soon it will find me. However, my ability to evade the ruthlessness of time also has its drawbacks. Since I made the donation commitment in 2006, the life expectancy of my children has significantly shortened. They are now 71, 69, and 66 years old, respectively. I never wanted to create a family dynasty, nor did I want to make plans beyond my children. I know my three children very well and trust them completely. However, future generations are another matter. Who can foresee the priorities, wisdom, and loyalty of descendants when distributing enormous wealth, especially in a potentially different charitable environment? However, the massive wealth I have accumulated may require more time to distribute than the lifespan of my children. And rather than be directed by my will, it is better to be made by three living and capable brains. Therefore, I have designated three potential successor trustees. They are known to my children and we all believe that such choices are logical. In addition, they are younger than my children. However, these successors are currently on the waiting list. I hope Susie, Howard, and Peter can personally distribute all of my assets. Each successor respects my wish that the plan for distributing my Berkshire shares cannot in any way betray the trust that Berkshire shareholders have in Charlie Munger and me. From 2006 to 2024, I had the opportunity to observe each child's actions, and they learned a lot in large-scale charity and human behavior. Each has led a team of 20 to 30 people over the years and observed the unique employment dynamics that affect charitable organizations. Wealthy fren are curious about my extraordinary confidence in my children and their potential successors. They are particularly surprised that I require all foundation actions to be decided unanimously. They ask: How is this feasible? I explain that my children will always face eager requests from sincere fren and others. Another reality is that when asked to provide large charitable donations, 'refusal' often prompts potential beneficiaries to consider other options—such as finding another fren or different project. Those who can allocate large funds are always viewed as 'opportunity targets'. This unpleasant reality is the price of being in this role. Therefore, the 'unanimous decision' clause allows the donor to immediately and ultimately respond to the applicant: 'This is not something my brother (or sister) will agree to.' This response will improve my children's lives. Of course, my consistency clause is not a panacea—if you have nine or ten children or stepchildren, this is obviously not feasible. It also does not solve the daunting problem of how to wisely distribute billions of dollars every year. For all parents, regardless of wealth, I have one more suggestion. When your children are mature enough, let them read it before you sign your will. Make sure each child understands your decision logic and the responsibilities they will face after your death. If they have any questions or suggestions, carefully listen and adopt those reasonable suggestions. You do not want your children to feel puzzled or dissatisfied with the contents of the will when you cannot answer. Over the years, my three children have questioned or suggested my will, and I have often adopted their suggestions. I think it is not unreasonable for me to defend my ideas. My father did the same to me. I change my will every few years—usually only minor adjustments—and keep it simple. Over the years, Charlie and I have witnessed many families being divided after the execution of the will, because the beneficiaries were confused or angry. Envy, as well as actual or imagined resentment from childhood, especially when a son is favored financially or positionally, is often magnified. We have also witnessed some situations: when wealthy parents fully discuss the will with family before their death, family relationships become even closer. What could be more satisfying than this? As I write this statement, I continue to enjoy the fortunate life I have had since 1930. I was born in the United States, a white male. Of course, my two sisters were explicitly promised equality with men when the 19th Amendment was passed in 1920. After all, this was the message our thirteen colonies passed on in 1776. However, the United States in 1930...