by Susan M. Graham, Certified Elder Law Attorney, Senior Edge Legal, Boise, Idaho
As one of the wealthiest individuals on the planet, Warren Buffett’s public disclosure of some of his estate planning earlier this summer crated plenty of interest.
Warren Buffett, as one of the creators of The Giving Pledge, encouraging wealthy people to give away most of their wealth to charitable causes, His estate plan isn’t like other billionaires’ estate plans. There are many takeaways for people of all different wealth levels, according to a recent article, [“What Clients Can Learn from Warren Buffett’s Estate Plan” Wealth Management, September 4, 2024]. Senior Edge Legal offers some estate planning lessons from Warren Buffett.
Flexibility is Key
Buffett says he’s changed his will several times after seeing how his children matured over the years. Building flexibility for his estate plan is important. It’s hard to tell which child will end up with a better financial situation, or which is more financially responsible. In addition, any time there is a significant life event, like divorce, moving to a new state, a new child in the family or marriage, estate planning documents should be reviewed, especially state-specific ones.
Simplicity vs. Privacy
Buffett is celebrated for leading a relatively ordinary lifestyle, living in the same house, and driving the same car for many years. In a newsletter, he declared to Berkshire Hathaway shareholders his estate would be an open book, a simple last will and testament to be filed at the Douglas County Courthouse. The courthouse will no doubt be flooded by requests for the document, as it will become part of the public record once it’s filed.
This is a surprising statement, as many families choose to use trusts to keep their family affairs private and not an open book to the public. A Last Will and Testament becomes a public document when filed with the Court. A trust is private.
Charitable Giving
Buffet has put his three children in charge of a charitable trust called a Donor Advised Fund. Buffett praises his children’s ability to make good decisions, trusting them to carry out the family’s philanthropic goals while leaving room for them to deal with future changes in the tax laws and regulations governing nonprofits. His plan for the three of them to make unanimous decisions may lead to some wrinkles in the plan. However, he believes their shared values will overcome any disagreements.
Conclusion
While these estate planning lessons from Warren Buffett sound wonderful, each family is different. At Senior Edge Legal, we’ve seen many loving families dissolve into contentious fights over a loved one’s estate. We encourage everyone to create an estate plan for themselves and their families.
Contact Senior Edge Legal today to schedule a consultation with me, Susan Graham, Elder Law Attorney. Let us help you create a tailored estate plan that reflects your wishes and protects your family’s future.
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Do you have a written estate plan that protects your future and your loved ones? Call to schedule a meeting with Susan Graham to give you peace of mind that your affairs are in order (phone 208-344-0375 or Contact Us on our website).
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