Spring 2025

I came across a quote not too long ago from Warren Buffett. He was giving estate planning advice to parents whose children will most likely receive a nice inheritance from them. Here’s what he said, “When your children are mature, have them 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.” *

Let me go on to say that Warren Buffett and I share a birthday. One of many similarities that he and I have. Ok, maybe the only other one is that we are both considered investing guru’s, but I didn’t want to pat myself on the back. Seriously though, I have a lot of respect and admiration for Warren Buffett in the way he lives his life, has built his wealth, and advises others. It’s a huge responsibility I have on my shoulders to be born on the same day as him but one I take as an honor.

With that being said, I don’t always agree with all the advice Warren gives, but I do think about how or if this can apply to you or me. Now, my guess is that most of us will probably not accumulate the amount of wealth that Warren Buffett has, however, we may be passing along a very respectable inheritance to our children, and it would be good for them to know what we expect them to do with it. I agree it deserves a conversation with them, but when and how that is done, may vary from person to person.

When my husband, Roger and I revised our estate plan to incorporate our blended family, we wanted to make sure our kids knew what our expectations would be from them. We have seen too many families divided because of inheritance, and no parents wants that to occur. Families can include anyone from children, stepchildren, nieces, nephews, close friends or companions.

Now, we didn’t sit down with our kids prior to signing our documents as Mr. Buffett recommended. Roger and I made our decisions jointly and then called a family meeting with our kids. It did not involve their significant others or spouses. While we did not give specific details as to our savings or net worth, mostly because plan A is to spend every dime before we die, we did express to them how things would be divided amongst them and our expectations. We discussed our approach to philanthropy and why we choose what we do, so they can make an educated decision on what method works best for them. We talked about who would oversee the trust settlement and why. We explained to them that we chose Raymond James Trust as a corporate trustee so that no one child had to bear the burden of responsibility of settling our affairs and being the trustee who carries out our wishes. In addition, and most importantly, none of them would then be scrutinized or criticized in the handling of affairs since that task wouldn’t fall on any of them. They listened as we talked. They asked a few questions but mostly, they didn’t like talking about our death. What child does?

Our kids were all adults and mature enough to handle the conversation at the time. We’ll have the conversation again as their lives change and their understanding of the world continues to evolve. I’m glad we did it. Now, there is no question amongst them what our intentions are. We are all on the same page.

Everyone’s family situation is unique, and you know what works best for yours. Warren Buffett has been around a long time, and I figure he’s picked up a few life tidbits along the way that are worth considering.

*MarketWatch, November 30, 2024, https://www.marketwatch.com/story/warren-buffetts-5-estate-planning-tips-are-just-as-valuable-as-his-investing-advice-72d30e67