Paul O. Dillon, Attorney at Law

How Estate Plan Protects Your Family

Estate planning is one of many ways to make a difference to your family’s future. Whether starting from scratch or revising a will created many years ago, your estate plan gives you control over your assets and secures your loved ones. The title of a recent article from Florida Today says it all: “Your family’s future is important to you. These estate-planning tips can help secure it.”

If you don’t have a will, get started on this part right away. A will outlines how you want assets to be distributed upon your death. Without one, the probate court in your jurisdiction will determine who receives your property, and while you may not be around to see the results, your family will. If you have a will but haven’t reviewed it in a while, you’ll want to know if it still makes sense for you. Life is all about changes, good and bad, and your will should reflect your current life.

Living trusts keep assets in the family and pass from one person to the next without court involvement. Property owned by a trust goes directly to the beneficiaries without going through the probate process. Even better, trusts are used to appoint a trustee who will manage the assets if you become incapacitated. A trust works while you are living and after you have died. Families with significant assets, blended families and anyone looking for a smooth way to pass assets to loved ones rely on trusts.

People underestimate the importance of a Power of Attorney. A durable power of attorney gives a person of your choosing the legal authority to act on your behalf in financial matters. If you are too sick to pay bills or manage investments, an agent (the person named in the POA) can act on your behalf. Without this document, your family must petition the court to appoint someone to manage your life. The court has no obligation to name a family member or even someone you know to oversee your life. It’s far better to simply have an estate planning attorney create a POA suited to your needs.

You’ll also want an advance healthcare directive, sometimes called a living will, to express your wishes for healthcare in case you can’t. This document includes your wishes regarding life-sustaining treatments, organ donation and end-of-life care. The healthcare directive serves two critical purposes: it allows you to state your wishes and spares your family from not knowing what you want during a healthcare crisis. An emergency is no time for your children to guess what Mom wants.

Beneficiary designations are used in many financial accounts to allow the asset to go directly from the original owner to the beneficiary without going through probate. Beneficiary designations override your will. If you want your nephew to inherit your IRA but your IRA’s beneficiary designation is your spouse, your nephew gets nothing. People who have been divorced need to be extra careful about making sure their beneficiary designations are updated.

Parents of minor children must designate a legal guardian in their estate plan. Establishing a trust to own an inheritance for healthcare, education and living expenses ensures that their guardian will have funds to care for the children. Minors may not inherit property, so making a trust is the best way to protect and control their inheritance.

An estate plan, including a will, power of attorney, healthcare directive and trusts, is central to protecting your family and their future. An experienced estate planning attorney will help identify your concerns and know how to address them in a legally enforceable manner.

Reference: Florida Today (Feb. 8, 2025) “Your family’s future is important to you. These estate-planning tips can help secure it.”

Should Your Estate Plan Include a Trust?

Estate planning is like getting an oil change for your car or going to the dentist. There are other things you’d rather be doing. However, you know these are things you must do to avoid far more expensive problems later on. Estate plans are personalized, based on your needs and situation. One strategy you may want to consider is a living trust, as explained in a recent article from MSN, “3 Reasons to Seriously Consider Using a Living Trust to Pass an Inheritance to Your Family.”

One of the reasons for having a living trust is to avoid the probate process. This is a legal process where a court decides if the will is valid, approves the executor and oversees the distribution of assets left through the last will and testament. If a person owns property in multiple states, probate must take place in each state. Probate can take months or, in the case of complicated estates, years. A living trust distributes assets to beneficiaries without the court's involvement.

Passing assets through trusts provides more privacy than going through a will and, hence, through probate. When a will goes through the probate process, it becomes a public document, and anyone can read it. This means your will could be read by disgruntled family members, creditors, an ex-spouse, or thieves looking for victims.

Details about a living trust, including assets, beneficiaries and terms of the trust, aren’t part of the public record. This is useful for two reasons—avoiding potential conflicts with those who did and those who did not receive inheritances and shielding recipients from potential scammers. Sadly, there are numerous cases of families who fought bitterly over inheritances after they obtained the will from the local courthouse.

Living trusts offer a great deal of flexibility. They can be modified in any way desired by the grantor (the person creating the trust) if they are living. The trust can be modified to reflect life events like marriage, divorce, death, or financial changes. Having the ability to make these changes works well for those concerned with aligning their wishes with their estate plan.

One final note: when you create a trust, you must place assets in the trust to fund it. This usually occurs by retitling the asset to be owned by the trust and not by the grantor. Your estate planning attorney can help make sure you do this last step. Failing to fund the trust is critical for it to perform as you want.

Discuss your overall estate plan with your estate planning attorney. There are many different types of trusts. The attorney will be able to help you decide which one is best suited for you. You’ll also want to be sure any trusts created align with your estate plan.

Reference: MSN (Feb. 3, 2025) “3 Reasons to Seriously Consider Using a Living Trust to Pass an Inheritance to Your Family”

Don’t Procrastinate on Estate Planning Moves

Planning for wealth transfers, whether you are the person doing the giving or the recipient, is essential to avoid expensive surprises, says a recent article from Go Banking Rates, “Wealth Transfers: 9 Unexpected Obstacles to Plan For Before It’s Too Late.”

Wealth transfers fall into two categories. Beneficiary wealth is wealth passed from your estate to beneficiaries. The second is legacy wealth, which is when entities, like trusts, are created to pass wealth on in perpetuity. The first step in planning for wealth transfer is deciding what you want to happen to the wealth you’re passing on.

The next step is figuring out the tax implications of the wealth transfer. A traditional IRA or 401(k) account is tax-advantaged, while non-qualified assets include stocks, bonds, investment accounts and Certificates of Deposit (CDs). Unless they fall into certain categories, an heir receiving an inherited traditional IRA must empty the account within ten years with Required Minimum Distributions and pay income taxes on those distributions. For this and many other reasons, estate planning includes tax planning.

Estate planning includes articulating your wishes for how wealth is to be passed. Without having a will prepared by an estate planning attorney, you risk your entire estate being tied up in court probate proceedings for months or even years. Fights among family members are more likely to occur when your wishes aren’t made clear through enforceable legal documents.

You’ll also want to discuss your estate plan with your family. A sudden inheritance, if not expected, could create tax issues, sow discord between family members and lead to expensive litigation if some feel they were treated unfairly.

People think they don’t need an estate plan because they are too young, still healthy, or don’t have enough assets to warrant taking the time to create an estate plan. This is simply not true. Anyone over the age of 18 will benefit from having an estate plan. An estate plan includes preparing for incapacity and creating documents, like a Power of Attorney and Healthcare Proxy, so someone else can take care of you if you are injured or too sick to communicate your wishes. As you accumulate more assets and age, these documents need to be reviewed and updated to reflect changes in status.

A commonly overlooked and often expensive mistake in estate planning is to neglect to check and update beneficiary designations. This lesson is learned when people get divorced or remarry. When the spouse passes, the new spouse is stunned to discover the recipient of these accounts goes to the prior spouse.

Don’t forget to leave specific instructions in writing for tangible assets. This may include real estate property, cars and houses. Some people want to give their children the family home but have them sell it immediately to take the cash. If your wishes aren’t expressed, don’t expect them to be followed.

Speak with an estate planning attorney before it’s too late to put your wishes into an estate plan. Talk with your family about your estate plan. Making sure everyone knows what you want and putting it down on paper will protect your wishes and your loved ones.

Reference: Go Banking Rates (Jan. 24, 2025) “Wealth Transfers: 9 Unexpected Obstacles To Plan For Before It’s Too Late.”

Estate Planning for Americans Living Overseas

There are many nuances to estate and inheritance taxes for Americans and more for Americans living outside of the United States. While the current federal estate tax levels are extremely high, there are different rules in other countries, and a clear understanding is needed, as reported in the Tax Management International Journal/Bloomberg Tax article, “Americans Living Overseas Need Cross-Border Estate Planning.”

At the very least, expatriates will want to understand the federal estate tax and how it works with state-level taxes and how European taxes work, which are very different than the American model.

The current 2025 federal estate tax exemption is $13.99 million per individual, and estates below this threshold don’t pay federal taxes. The exemption will likely remain at elevated levels in the foreseeable future. Estates exceeding this level are taxed at rates up to 40%. However, most high-net-worth individuals have strategic estate planning to minimize their tax liability. Lifetime gifting, charitable donations and trusts shelter assets and pass wealth on to future generations.

Several states have their estate taxes, which are typically far lower than the federal level. Oregon, Rhode Island and Massachusetts have the lowest exclusions at $2 million or less. New York State's estate tax exclusion is $7.16 million. However, there’s a so-called “cliff tax” if the estate value exceeds the exemption even slightly. In most states, the estate tax ranges from 0.8% to 20%. Your estate planning attorney will know what your state’s exemptions are.

Inheritance taxes are levied only by a few states, including Iowa, Nebraska, Kentucky, Maryland, New Jersey and Pennsylvania. Maryland, known as a corporate haven for its low business taxes, imposes both estate and inheritance taxes. These taxes are based on the value of the inheritance and the relationship to the decedent.

In Europe, U.S. citizens are subject to more inheritance taxes, where exemptions tend to be lower, and rates are far higher than in the U.S. If you live overseas, you’ll need to consider the cost of your exposure to two tax systems. U.S. federal estate taxes apply wherever you live, in or outside of the U.S., and European inheritance taxes are based on where the decedent lived.

Estate planning for expats requires a multi-national approach. Find out if your country has a U.S. Estate and Gift Tax Treaty, which may allow credits to offset taxes paid in one country against those owned in another.

American citizens may gift up to $19,000 per person every year tax-free. Some European countries have a similar situation where lifetime gifting is based on the relationship between the grantor and the recipient.

Trusts recognized in the U.S. may not be recognized in other countries, so be sure the structure works in both the U.S. and your country of residence to avoid unexpected taxes.

The will you created in the U.S. may not be in compliance with another country and could lead to problems in estate administration.

Speak with an experienced estate planning attorney who can help you navigate the estate taxes and estate planning needs for living outside of the U.S. You’ll need to plan strategically to navigate American and your adopted nation’s estate tax structures.

Reference: Tax Management International Journal/Bloomberg Tax (Jan. 28, 2025) “Americans Living Overseas Need Cross-Border Estate Planning”

How to Protect Your Inheritance

Receiving an inheritance, expected or not, can be life-changing. We’ve all read articles about people who lived frugally and never hinted at their savings, then left a fortune to heirs or a beloved pet. In reality, few families receive any inheritance, and most of those are less than $50,000. However, if you receive an inheritance, you should protect it, according to an article from Kiplinger, “Manage an Inheritance Like a Pro in Just Seven Steps.”

Before making any decisions, be sure to understand what you are inheriting. Most estate plans include a variety of assets, from real estate, investments, cash, retirement savings plans, life insurance proceeds and personal property.

Be patient. Estates don’t settle quickly. The executor will need to gather up all of the assets, and some may take longer than others to track down. Without a will, this process would be further complicated by court involvement and probate.

The inheritance rules differ depending on the asset, the state of residence, and the relationship. Spouses enjoy certain tax breaks that are unavailable to adult children or heirs. Some states impose an inheritance tax on family members based on kinship.

Depending upon the assets and your relationship with the deceased, you may or may not have to pay taxes. Unless your benefactor was ultra-high net worth, it’s not likely you’ll need to pay a federal estate tax. However, there are state estate taxes, depending on where you live, to be aware of.

Certain investments are taxable. Inherited stocks, mutual funds, or investments in a taxable account may enjoy a step-up in basis. The cost basis for these taxable assets, including stocks and mutual funds, is “stepped up” to the investment’s value on the day of the original owner’s death.

This tax treatment may make a taxable-account inheritance suitable for a short-term goal, like paying off high-interest debt or making a downpayment on a home. If you keep the money invested, make sure to review your entire portfolio to see how it impacts your investment strategy.

Tax-deferred retirement accounts can be complicated when inherited. Spouses may roll assets into their own IRAs and postpone distributions and associated taxes until they’re 73. However, an inherited IRA to most  peoplewill need to be emptied within ten years of the original owner's death, with Required Minimum Distributions. Your estate planning attorney can help you map out the withdrawals.

If you inherit a home, the property's value is stepped up to its value on the date of the owner’s death. Let’s say you inherit a property purchased for $150,000 but is now valued at $300,000. The basis is now $300,000. Selling an inherited home gets complicated, so rely on your estate planning attorney to work through the tax details.

Life insurance proceeds aren’t usually taxable as income. However, the money might be included in your estate to determine the value for federal or state estate taxes. If a death benefit is paid out in a lump sum instead of installments, the interest on the death benefit is taxable.

What about spending your inheritance? Once you’re sure you have the money to pay any taxes, enjoying the benefit of an inheritance makes good sense. For some, this is an opportunity to pay off student loans, lower or eliminate credit card debt and set some aside for retirement.

Most people overestimate how long their windfall will last and underestimate how quickly wealth can evaporate. To protect your inheritance, deposit the money in a secure account and don’t quit your day job. If you don’t have an estate plan, you’ll need one to protect your heirs. Make an appointment with an estate planning attorney now to guide you and prepare for the future when you might be the benefactor.

Reference: Kiplinger (Jan. 24, 2025) “Manage an Inheritance Like a Pro in Just Seven Steps”

What Is a No-Contest Clause, and Do They Work?

While the number of wills being contested may sound small, this number doesn’t include the many wills not contested because of strategies used to discourage litigation. If your family includes people likely to battle over your estate plan, you’ll want to know about no-contest clauses. A recent article from Think Advisor, “How to ‘Bulletproof’ a Will With a No-Contest Clause,” explains how to protect your wishes.

Tens of thousands of wills are impacted by contested wills yearly, and even the closest families can find themselves fighting over inheritances. One way to prevent this is with no-contest clauses, also known as the in-terrorem clauses, placed in wills and trusts to discourage heirs from voiding their claims to any part of the overall estate if they challenge the will in court proceedings.

Estate battle reasons vary, from sibling rivalry to intergenerational power struggles. The outcome of using a no-contest clause depends on state statutes, evolving case law and how much the warring parties can or want to invest in estate litigation.

Encouraging discussion between all stakeholders in advance of the passing of the parent or grandparent can give time for everyone to work through any disagreements before courts become involved. However, even with the best of intentions, clear communication doesn’t always resolve the issues.

Almost every jurisdiction has addressed whether or not no-contest clauses can be enforced, either by law or by case law. Vermont doesn’t have any laws about enforcement, and Indiana and Florida do not allow the use of no-contest clauses.

A no-contest clause is relatively simple. However, there are limitations to be aware of. No-contest clauses work only for named beneficiaries who have a claim in the will, and they must be given a sufficient interest under the will or trust for the no-contest clause to be useful. Someone who has been cut out of a will entirely has nothing to lose by taking family members to court for their perceived deserved inheritance, while someone who stands to inherit something, albeit a smaller amount than they would have wished, could lose everything if the no-contest clause is enforced.

Many estate litigation matters involve individuals who receive significant interests. However, feel they that did not receive what they see as unequal or non-controlling interests. In these cases, the enforcement may be relatively straightforward.

Challengers who file actions because they believe someone unduly influenced the testator can be problematic. Few people understand how undue influence works in a legal setting. Undue influence can be found when a person makes bad or unfair choices because of an alleged wrongdoer’s behavior towards them, causing the victim to placate the person. However, proving undue influence is not easy.

There are strategies to overcome no-contest clauses, so estate plans must be prepared with these in mind. In some instances, estate administration is challenged, including actions over improper investments, or raising interpretations of ambiguities.

An estate planning attorney with experience will know how to use a no-contest clause and create an estate plan to stand up to challenges from dissatisfied family members or others who feel they have been treated unfairly.

Reference: Think Advisor (Jan. 16, 2025) “How to ‘Bulletproof’ a Will With a No-Contest Clause”

Why Singles and Child-Free People Need Estate Plans

A growing number of Americans are single or have chosen to be child-free. They may feel they don’t need estate planning, since so many articles about this topic concern couples, children, and grandchildren. However, estate planning can be more important for these individuals, according to a recent article from Yahoo! finance, “Don’t let the government inherit your wealth: Estate planning is essential for those who are single or child free.”

Without spouses and children, most state laws about inheriting property when there is no will rely on kinship or bloodlines, and assets will go to the next of kin, whether you like them or not. The other estate planning issue facing singles and child-free people is planning in advance, so someone you trust can manage your financial life and make health decisions on your behalf if you are incapacitated. All of these things are part of an estate plan.

For starters, review your financial accounts. Which ones allow you to name beneficiaries? If you have nieces or nephews, beloved friends who are your family, or charitable organizations you care about, you could name them to receive these assets.

If you don’t already have a durable and medical power of attorney, speak with an estate planning attorney to get these started immediately. Downloading templates from the web is not a good idea for these documents, as you may give someone expanded powers you didn’t intend to, or they may be deemed invalid. An estate planning attorney will create these documents to reflect your wishes. Do you want someone to be able to pay your bills but not to sell your house? Do you want to be kept on life support only if certain indicators are present? These are specific wishes to discuss and document.

Everyone should have a last will and testament. The will is used to name the executor overseeing your estate upon your passing. They will need to notify the Social Security Administration, Medicare and/or Medicaid and your state’s motor vehicle bureau, of your passing. They’ll also create an estate bank account, file for an estate taxpayer identification number, pay taxes and more. They’ll be in charge of distributing assets according to the directions you’ve left in your will. Without a will and a named executor, a court will name someone you don’t know as your estate administrator.

If you are a member of the LGBTQ+ community, having an estate plan is even more important to protect your wishes and, if you have one, a long-term partner. Without being legally married, even someone who has been part of your life for decades will not have any rights to inherit from you. Another reason to work with an experienced estate planning attorney is that every state’s laws regarding same-sex marriages, domestic partnerships and civil unions vary. An estate planning attorney will make sure that your documents align with state laws.

An unpleasant but necessary fact to consider: financial elder abuse can occur more easily when there’s no one closely involved in your life to keep an eye on you and your finances. Decision-making can be less heartfelt. Will a distant relative deciding on your nursing home pick one you would have wanted, or will their eyes be on their inheritance?

Whether you are child-free, single, or unmarried but in a serious relationship, don’t delay sitting down with an estate planning attorney to map out your future.

Reference: yahoo! finance (Dec. 19, 2024) “Don’t let the government inherit your wealth: Estate planning is essential for those who are single or child free”

Is It Better to Transfer Assets before Death?

Many people like to give inheritances after they have passed. However, another approach is to gift while living, which has some definite advantages for both the giver and the recipients. As explained in the article, “Gifting While You’re Alive: Tax Benefits and Practical Tips,” from Kiplinger, giving while living allows you to see how your legacy helps others, provides for greater control and has tax advantages.

Reasons for gifting while living vary widely. Therefore, be sure that your gifting strategy is part of a comprehensive estate plan and makes sense for your financial needs during your lifetime. Don’t give assets you need to cover living expenses, surrender investments early to incur additional costs or create a significant tax burden for yourself. Gifting while living should only be done if you and your spouse can afford it.

In 2024, individuals can give up to $18,000 per person to as many people as they want. In 2025, the level will increase to $19,000 per person for an individual and $38,000 for a married couple.

The IRS defines a gift as a property transfer where no equal value is received in return. Whether your gift is used for a down payment on a house, adding an owner to real estate property, paying off a debt for someone else, or forgiving a previous loan, check with an estate planning attorney to be sure that you are staying within the exclusion levels. Anything over the limit will incur taxes.

If your generosity extends to helping with educational costs or medical debt, be sure to make payment directly to the hospital, care facility, university, or private school. Only direct payments are gifts.

Gifting assets like shares in a business or real estate requires a professional appraisal to document the value of the gift. You don’t want to draw any attention from the IRS, so be sure to follow the guidelines.

If you hope to help a family member buy a home, you could structure your gift as an intrafamily loan. There are guidelines you’ll need to follow to make sure this is not considered a taxable gift by the IRS.

When gifts are made could matter as much as their size. Be careful when gifting appreciated assets and discuss this with your estate planning attorney beforehand. Inherited assets receive a step-up in basis at death. Still, inherited assets retain their original cost basis and could lead to capital gains taxes for the recipient if they sell the assets. If you gift your home to your children, for instance, they may be subject to a big tax bill if they sell the house in the future.

Section 529 educational savings plans are a great way for grandparents to help with their grandchildren’s education. Contributions can be front-loaded, allowing up to five years’ worth of contribution to be made at once—as much as $90,000 in 2024 and $95,000 in 2025 to a single 529 plan. Any additional gifts to the same beneficiary during the five-year period following the big funding could trigger gift taxes.

Talk with your estate planning attorney about making this kind of giving part of your overall estate plan. Seeing your family enjoy your generosity and knowing you’ve made a big dent in estate and inheritance taxes is a warm feeling for all concerned.

Reference: Kiplinger (Dec. 4, 2024) “Gifting While You’re Alive: Tax Benefits and Practical Tips”

How to Help Heirs Prepare for an Inheritance

If your family doesn’t talk about estate planning, including incapacity, death, or money, your heirs aren’t likely to know what to do if and when you become incapacitated, when you die or how to manage your assets when they become their inheritance. This is all too often the case, but it doesn’t have to be; according to a recent article from Madison Daily Leader, “Are your heirs ready to receive an inheritance?”

When an inheritance arrives, it’s accompanied by emotional, financial and legal issues. Having everyone prepared and informed can make the difference between a squandered inheritance, an inheritance consumed by taxes, or an inheritance wisely managed and benefiting one or more generations.

There are key issues to discuss, including matters to cover with an estate planning attorney.

Communicate with your family about your estate plan, which is more than a will. Incapacity planning includes a Power of Attorney and Healthcare Power of Attorney, two documents allowing you to name someone else to act on your behalf if you cannot express your wishes. A living will tells loved ones your wishes regarding end-of-life care. With it, your family will know if you want to be kept alive by artificial means. Without it, they’ll have to guess.

Sharing the contents of your will allows loved ones to know what to expect. They may not all be happy with your decisions. However, it won’t be a surprise and will be less likely to spark disputes after you have passed.

Do your heirs know how to manage money or other assets? If you’re leaving your heirs wealth in the form of stocks, real estate, IRAs, 401(k)s, cash, or cryptocurrency, they’ll need to be prepared to accept the assets. If your estate includes a vacation home, is there a plan for sharing it among heirs? These issues will be more manageable, if heirs understand what they are inheriting and what they’ll need to do.

An estate plan should address taxes for the people creating the plan and their heirs. While your family may not have to worry about federal estate taxes, some states still have inheritance and estate taxes. Withdrawals from certain types of inherited accounts may incur state and federal income taxes, which could take a bite out of their inheritance. If inherited assets are sold for more than they were worth at the time of inheritance, there may be capital gains taxes.

Every estate has some expenses to be considered, including funeral costs. If the decedent has a mortgage and the home is left to heirs, they may need to sell it quickly before expenses mount. The estate plan should include an inventory of all liabilities and assets, so the executor can address any outstanding debts.

There’s a lot to unpack when managing an estate. Start by having an estate plan created with an experienced estate planning attorney or update an existing plan to be sure that it still achieves your wishes. Talk with heirs so they understand your intentions. Leaving a legacy of caring takes many forms, and this is one of them.

Reference: Madison Daily Leader (Nov. 23, 2024) “Are your heirs ready to receive an inheritance?”

Does Talking with Heirs About Estate Plans Keep Families Closer?

Warren Buffet believes parents should read their wills to their children before they are signed, reports a recent article from yahoo! finance, “Warren Buffet has advice for parents on inheritance planning.” This level of transparency can prevent families from being torn apart after the parents have passed and can serve to bring children closer.

Buffet’s advice is one frequently given by estate planning attorneys to their clients: talk to your heirs about their inheritance while you are living to address issues, clear up any confusion and avoid a lifetime of misunderstandings.

Buffet makes an annual gift to four of his family foundations every Thanksgiving, and this year, he presented a letter on his plans to distribute his wealth. Both Buffet and his late wife Susan believed extremely wealthy parents should be careful to leave their children with enough money to “do anything, but not enough that they can do nothing.”

The three Buffet heirs will not inherit his entire fortune, but they have been put in charge of donating 99.5% of it.

Buffet also has wisdom for families with more modest assets. He said there should be ongoing conversations about the estate plan as soon as children are old enough to understand the concept of an estate plan and the family’s financial situation.

Heirs should be given an opportunity to ask questions. If their suggestions are reasonable, they should be adopted, he said. All three of Buffet's children had questions. Buffet said he often took those requested changes and incorporated them into his will.

The goal is to avoid confusion about decisions while you are still living and can resolve the issues. Many families are pulled apart when parents pass, and their decisions about wealth distribution come as a surprise, creating turbulence among siblings.

While the average American inheritance is more like $46,000, according to the most recent Federal Reserve data (2016-20919), and not the $10 million left to the Buffet children from their mother’s estate, the advice is still good.

Buffet also discussed making sure his children knew early on they would always be asked for donations from sincere people and those who are not. His will contains a provision requiring all three children to approve any donations made by the foundation. They must also give an immediate and definitive response to grant seekers, allowing them to say no because one of their siblings would never agree to the request.

While most people don’t face the challenges of overseeing billions in inheritance or foundations, Buffet’s wisdom in investment and company building appears to extend to his parenting. For the rest of us, a meeting with an experienced estate planning attorney to create an estate plan is the start of a plan to distribute our wealth among heirs.

Families, especially those with many children and the means to be philanthropic, often hold regular meetings with their estate planning attorney and other advisors to discuss wills, trusts and charitable giving to create a legacy.

Reference: yahoo! finance (Nov. 26, 2024) “Warren Buffet has advice for parents on inheritance planning”