Why Parents Should Share Their Wills Before They Die
Warren Buffett, the renowned investor and CEO of Berkshire Hathaway, has offered compelling advice for parents regarding Estate Planning: share your Will with your children before finalizing it. This guidance applies to families of all financial standings, whether they have “modest or staggering wealth.”
Key Takeaways from Buffett’s Advice
Buffett emphasizes the importance of transparency in Estate Planning, recommending that parents:
- Explain the reasoning behind their decisions to their children
- Listen to and consider their children’s questions and suggestions
- Ensure children understand their future responsibilities
- Address potential concerns while still being able to provide explanations.
The billionaire investor, drawing from his observations of family dynamics, notes that he has witnessed many families torn apart by confusion and anger over posthumous Will revelations. Childhood jealousies and perceived slights often become magnified when discovered after a parent’s death.
Expert Perspectives
Financial experts support Buffett’s approach while noting some important considerations:
Douglas Boneparth, CFP and founder of Bone Fide Wealth stresses that these conversations, though challenging, can strengthen family relationships. He emphasizes the importance of managing expectations and being clear about inheritance decisions, particularly when distributions aren’t equal among siblings.
Peter Welsh of Welsh Law adds a nuanced perspective, suggesting that while transparency is generally beneficial, there are situations where discretion might be warranted. For instance, parents might need to be more cautious when dealing with children who have:
- A history of financial exploitation
- Demonstrated financial irresponsibility
- Shown patterns of poor money management
The Bottom Line
Buffett’s advice underscores a crucial aspect of Estate Planning: the importance of open communication while parents are still able to explain their decisions and address concerns. As Buffett himself notes, “There is nothing wrong with my having to defend my thoughts. My dad did the same with me.”
This approach to Estate Planning can help prevent family conflicts and ensure that parents’ wishes are clearly understood, potentially preserving both family harmony and financial legacy for future generations.
If you need help to decipher your wishes and to work with your family to explain the process and your thoughts, feel free to reach out to Peter@Smartwills.ca
To further help you in your planning, check out our latest article on the SmartAccess Kit: Your Estate’s Roadmap
Want more information?
Are you interested in a consultation with Peter R. Welsh?
Contact me at Peter@SmartWills.ca
By telephone 416-526-3121
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This material is for general information and educational purposes only. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions.
