[imagesource:flickr]

In a colourful letter to Berkshire Hathaway shareholders on Monday, billionaire Warren Buffett upped his record for humanitarian donations by more than $1.1 billion while at the same time changing his will around the planned distribution of his riches after his death.

Buffett revealed Monday that he will gift around $1.15 billion of Berkshire shares to his family’s charity organisations, which include those operated by his three children, Howard, Peter, and Susie Buffett.

Buffett – who reiterated his intention for his children to “gradually distribute” all of his Berkshire shares, which account for 99.5% of his fortune – stated that he “never wished to create a dynasty or pursue any plan that extended beyond the children.”

Buffett has already given away 56.6% of his Berkshire shares after committing in 2006 to give away the majority of his riches.

“Tomorrow’s decisions are likely to be better made by three live and well-directed brains than by a dead hand.”

Buffett, 94, shared his revised plan for when “father time…gets around to me,” noting he appointed three “successor trustees” for each of his children in his will, should anything happen to his children aged 66 to 71.

The trio overseeing his fortune after his death must however come to a unanimous decision to disperse any funds.

Buffett is worth $150 billion and according to Forbes, he is possibly the world’s largest philanthropist, having donated more than $60 billion to charity groups throughout his lifetime. The majority of that comes from his more than $43 billion in gifts to the Gates Foundation, which is overseen by fellow billionaire and Microsoft cofounder Bill Gates.

Buffett, who is worth more than twice as much as he was in 2014, is still less than half as wealthy as the world’s wealthiest man, Elon Musk, who has a mind-bending $330 billion fortune.

“In no way did I, or anyone else, dream of the fortunes that have become attainable in America during the last few decades.”

“It has been mind-blowing – beyond the imaginations of Ford, Carnegie, Morgan or even Rockefeller. Billions became the new millions.”

Buffet seized the opportunity on Monday to speak to ‘ordinary’ people about how estate planning extends beyond the select few who have anyone near his magnitude of riches. “When your children are mature, have them read your will before you sign it,” wrote Buffett.

“You don’t want your children asking ‘Why?’ in respect to testamentary decisions when you are no longer able to respond.”

As always, the Nebraska native makes a good point. Now, you might not leave the kind of financial legacy that Buffet will inevitably do one day, but a legacy is not just about drafting a will – so chat to Galbraith Rushby to navigate the complexities of your estate planning – even if it’s not in the billions.

With clever estate planning such as setting up trusts, making charitable donations, or gifting away your assets during your lifetime, you can keep the silverware in the family. Galbraith Rushby provides tailored solutions that can help you maximize the legacy you leave behind.

[source:forbes]