Buffett donates another 1.1 billion Berkshire Hathaway shares, emphasizing the need for transparent estate planning

The stock god Warren Buffett announced that he will donate about $1.14 billion worth of Berkshire Hathaway Inc. stock to four family foundations as part of his charitable commitment. Buffett also emphasized the importance of a will, suggesting that parents should openly discuss estate planning with their children during their lifetime.

Buffett donates over $1.1 billion worth of stocks again

According to a statement released by Berkshire Hathaway, Buffett decided to convert 1,600 shares of Berkshire Hathaway Class A stock into 2.4 million shares of Class B stock. He will then donate 1.5 million shares to the Susan Thompson Buffett Foundation named after his late wife and donate 300,000 shares to his three children's foundations.

Note: The B shares of Pokexia are designed to allow more investors to participate in the company's investment without having to purchase expensive A shares. This design also helps prevent excessive control of the company, as A share holders have greater voting rights.

In 2010, Buffett and his fren, also Microsoft co-founder Bill Gates and his ex-wife Melinda French gates, launched the 'Giving Pledge,' indicating that he would donate his wealth during his lifetime or after death. Four years ago, he began to donate a large amount to the Gates Foundation and foundations related to his children.

The latest donation has reduced Buffett's stake in Berkshire Hathaway Class A shares to 206,363 shares, a nearly 57% decrease since 2006. According to the Bloomberg Billionaires Index, his net worth is $150.2 billion, making him the seventh richest person in the world.

Buffett's advice on estate planning

Buffett stated that his children will be responsible for gradually distributing all of his Berkshire Hathaway stocks after his death, which account for 99.5% of his wealth. He also designated three potential successor trustees in case his children are unable to complete the distribution of the assets.

Buffett also emphasizes the transparency of the will, suggesting that all parents let their children read and understand the contents and logic of the will after they reach adulthood, as well as the responsibilities they will face after their parents' death. This can avoid questions and disputes after the parents' death. Moreover, discussing the will in advance can help family members better understand and accept the inheritance distribution, thereby enhancing family harmony.

Buffett also believes that wealthy parents should provide enough resources to their children so that they can do what they want to do, but not so much that they do nothing. He proudly stated that his three children spend more time helping others than he does, and they enjoy financial comfort without focusing on wealth, which is a value they learned from their mother, Susan.

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