Warren Buffett just shared his most detailed plan yet for his fortune when he dies
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Warren Buffett shared on Monday his most detailed plan yet for his fortunes after death, while announcing he will continue to give away his staggering wealth.
In a letter to shareholders, the iconic investor and Berkshire Hathaway CEO, who is 94, reflected on the nature of mortality, referencing how he once hoped his late first wife would outlive him and decide how to distribute their fortune.
"Father time always wins," Buffett wrote. "But he can be fickle, indeed unfair and even cruel, sometimes ending life at birth or soon thereafter while, at other times, waiting a century or so before paying a visit. To date, I've been very lucky, but, before long, he will get around to me."
In the nearly 1,300-word letter, Buffett said he hopes his three children, Susie, Howard and Peter Buffett, who are in their 60s and 70s, will live long enough to decide what philanthropic causes their father's fortunes will be donated to. When Buffett passes, they will be tasked with unanimously deciding how to give away his wealth.
But, in case his children aren't able to determine the fate of his fortune,Buffett also designated three potential successor trustees. He did not name them in the letter.
"The expected life span of my children has materially diminished since the 2006 pledge," he wrote. "I've never wished to create a dynasty or pursue any plan that extended beyond the children."
Buffett also announced he is turning 1,600 Class A shares of his company into 2.4 million Class B shares, which have fewer voting rights. Of those shares, 1.5 million will be donated to the Susan Thompson Buffett Foundation, named after his late first wife, and 300,000 to three other foundations led by his children, all worth about $1.2 billion.
The donations add to annual gifts made to the four family foundations, as well as the Bill & Melinda Gates Foundation. Since 2006, Buffett has pledged to steadily give away his wealth, which is estimated to be $150 billion, according to Bloomberg. He has said the rest of it will be given away after his death.
Warren Buffett smiles during an interview in Omaha, Nebraska, in May 2018.
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Buffett was born in Omaha, Nebraska, on August 30, 1930. He was the only son of Laila and Howard Buffett. Howard was a US congressman.
Courtesy of Susie Buffett
A young Buffett, far left, is seen with his grandfather, Ernest, as well as his cousins and two sisters.
Courtesy of Susie Buffett
Laila Buffett poses with her three children -- from left, Roberta, Warren and Doris.
Courtesy of Susie Buffett
Warren Buffett stands in front of his childhood home in Omaha.
Courtesy of Susie Buffett
Buffett teaches a class at the University of Nebraska-Omaha.
Courtesy of Susie Buffett
Buffett married his first wife, Susan, in 1952. They had three children together: Peter, Howard and Susan. The latter two are seen here with their parents.
Courtesy of Susie Buffett
Buffett and his wife pose at the beach with their three children.
Courtesy of Susie Buffett
Buffett poses for a photo in 1980.
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Buffett testifies before a House subcommittee after the Salomon Brothers investment bank was caught in a treasury bond scandal in 1991. Buffett took over as the company's chairman of the board to guide it out of troubles with the Federal Reserve System.
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Buffett attends one of Berkshire's annual shareholders meeting. Seated with him here are his daughter Susan, left, and his wife Susan. Buffett's wife died in 2004.
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Buffett arrives at an Omaha Dairy Queen to autograph books and chat with Berkshire Hathaway shareholders in 2002. Many people were in Omaha for Berkshire Hathaway's annual shareholders meeting, which has been described as "the Woodstock of Capitalism."
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Buffett attends a GEICO ceremony in Trenton, New Jersey, in 2004.
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Buffett joins California Gov. Arnold Schwarzenegger during a meeting of Wall Street investors in New York in 2004. Buffett advised Schwarzenegger's gubernatorial campaign in 2003.
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Buffett sits atop a fake bull at the Berkshire Hathaway annual meeting in 2006.
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Buffett stacks his chips at a charity poker tournament in Omaha in 2006.
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Buffett plays the ukulele with a band during the Berkshire Hathaway meeting in 2007. He learned the instrument decades ago.
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Buffett stands in front of a portrait of himself, painted by Michael Israel, in 2008.
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Buffett throws out the first pitch before a Kansas City Royals baseball game in 2008.
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Buffett sits with Girl Scouts in Omaha in 2008.
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Buffett uses a large paddle to play table tennis in 2010.
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Buffett and Microsoft Chairman Bill Gates enjoy a meal together at the Hollywood Diner in Omaha in 2010. That year, the two launched The Giving Pledge, which encourages the world's billionaires to dedicate the majority of their wealth to philanthropic causes.
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Buffett is sworn in to testify before the Financial Crisis Inquiry Commission in 2010. The bipartisan committee was created by Congress to investigate the causes of the financial crisis.
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President Barack Obama awards the Presidential Medal of Freedom to Buffett in 2011. "Today, we know Warren Buffett not only as one of the world's richest men, but also one of the most admired and respected," Obama said. "Unmoved by financial fads, he has doggedly sought out value, put his weight behind companies with promise and demonstrated that integrity isn't just a good trait -- it is good for business."
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Buffett is mobbed by journalists and shareholders during Berkshire Hathaway's annual shareholders meeting in 2011.
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Buffett talks with his son Peter before the start of the shareholders meeting in 2011.
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Buffett poses for a photo in Omaha in 2012.
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Buffett and his second wife, Astrid, arrive at the White House for a state dinner honoring British Prime Minister David Cameron in 2012. The next month, Buffett confirmed that he had been diagnosed with Stage 1 prostate cancer. He underwent radiation treatments and told Berkshire Hathaway shareholders that the cancer was "not remotely life-threatening."
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Buffett looks out at Omaha in 2012.
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Buffett wears a Woodrow Wilson High School jacket as he attends an event in Washington, DC, in 2012. Buffett graduated from the Washington high school in 1947.
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Buffett is photographed for Forbes magazine in 2012.
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Buffett listens as his son Howard speaks during an interview in New York in 2013. Buffett and his late first wife, Susan, gave and pledged billions to each of their three children to fund charitable foundations. Howard, an Illinois farmer, picked global hunger as his target.
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Buffett spins a basketball with the help of Chris "Handles" Franklin, one of the Harlem Globetrotters, at the Berkshire Hathaway shareholders meeting in 2013. At left is football star Ndamukong Suh.
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Buffett and Berkshire Hathaway Vice Chairman Charlie Munger are seen on a giant screen during the Berkshire Hathaway shareholders meeting in 2013.
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Buffett arrives for a conference in Sun Valley, Idaho, in 2014.
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Buffett introduces products to shareholders before their annual meeting in 2014.
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Buffett goofs off with Cleveland Cavaliers mascot Moon Dog prior to an NBA game in 2014.
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Buffett does an interview in 2015.
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Buffett listens as presidential candidate Hillary Clinton speaks during an event in Omaha in 2015. Buffett said at the rally that he was supporting Clinton's bid for president because they share a commitment to help the less affluent.
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Buffett attends the world premiere of "Becoming Warren Buffett," a documentary about his life, in 2017.
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Buffett attends Forbes' 100th anniversary gala in New York in 2017.
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Buffett walks through the exhibit hall during Berkshire Hathaway's shareholders meeting in 2019.
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Buffett speaks during Berkshire Hathaway's virtual shareholders meeting in May 2020.
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Warren Buffett's life in pictures
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Buffett also gave estate-planning advice to parents with wealth that might outlive them.
"When your children are mature, have them read your will before you sign it,"he wrote. "Be sure each child understands both the logic for your decisions and the responsibilities they will encounter upon your death."
