Legendary investor Warren Buffett has a piece of critical advice for parents that he believes they should follow, regardless of their wealth status.
In a recent letter, the Berkshire Hathaway CEO advised parents to not just write their will but also discuss it with their children.
“Be sure each child understands both the logic for your decisions and the responsibilities they will encounter upon your death,” the Oracle of Omaha said.
This, Buffett says, essentially ensures that there is clarity about the inheritance between parents and their children, reducing the chances of disputes. This is especially important when parents are no longer there to resolve differences over matters such as these.
“If anyone has questions or suggestions, listen carefully and adopt those found sensible. You don’t want your children asking ‘Why?’ in respect to your will”.
Buffett’s letter also recounted instances where families were torn apart due to unclear testamentary directives.
He encouraged parents to invite their adult children to discuss the will, ensuring transparency and understanding.
This advice from Buffett aligns with his recent actions, including announcing new charitable donations and updates to his $150 billion fortune.
Buffett has been converting Berkshire Hathaway (NYSE:BRK) (NYSE:BRK) shares to make these donations, emphasizing his commitment to philanthropy.
Buffett’s family dynamics also reflect his philosophy. His daughter-in-law, Mary Buffett, once thought she would receive “free candy” upon marrying his son, but learned there was no such thing with Warren, highlighting his emphasis on self-reliance and integrity.
This perspective is consistent with his hiring philosophy, where he values integrity above all other traits.