Sunday, May 05, 2013

Buffett and Munger on Estate Planning

From Dealbook's report on the Berkshire Hathaway shareholder meeting:
A shareholder and estate planning expert takes the mic. He says that many of his clients want to follow Mr. Buffett’s plan to leave his children a significant sum of money, but donate most of his enormous wealth to charity.

“The idea is leave enough to do anything, but not enough to do nothing,” the investor says. “How much is that?”

The audience laughs. Mr. Buffett responds that children’s behavior is often more dictated by how their parents act rather than how big their inheritance is.

Mr. Munger demurs on answering the question, saying it’s a bad idea to discuss one’s will with one’s children — if they will be treated unequally.

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