Paul O. Dillon, Attorney at Law

Good Parenting and Estate Planning Work Together

Wealth created by one generation is often lost by the third generation when financial discipline, respect for the process of wealth creation and understanding the responsibilities of wealth aren’t taught from generation to generation. There are ways that parents can help their children and grandchildren overcome this tendency, and estate planning strategies are part of the process, says a recent article from Barron’s, “Teach Your Kids to Preserve Family Wealth, Not Squander It.”

Preparing to transfer wealth is best done with an experienced estate planning attorney. In addition, an annual letter to your children with a summary of the family’s financial situation and a statement of the parent’s values will help educate and update the family.

The annual letter should also share info about where to find wills and trusts and other estate planning documents, contact info for the estate planning attorney, financial advisor and accountant, and the location of life insurance policies. Don’t neglect an inventory of digital assets, their value and how to access them.

Trusts offer an opportunity to express values by creating a trust with incentive provisions and age-related triggers. When a beneficiary reaches certain milestones, like graduating from college or getting married, distributions can be made. There are also means of discouraging problematic behaviors. Provisions may be written to delay distributions until a beneficiary retains a job or enters a rehabilitation program and maintains sobriety for a certain period. Your estate planning attorney will discuss which type of trust is best for your family.

Start by defining your own family’s values and what it looks like to put those values into real-life scenarios. For instance, if you value entrepreneurial spirit, a trust could be created with discretionary distributions and non-binding language encouraging heirs to use the funds to start or expand a business. A trust could also encourage children to buy a home in a community with an excellent school district to benefit their children.

Stating these models without living them defeats the end goal. Children learn values by seeing how their parents behave. These lessons are learned early in life.

For high-net-worth families, avoiding a sense of entitlement is a major challenge. This is where generations lose a work ethic and wealth. Good parenting can avoid this by encouraging children to become resilient and allowing them to fail in safe settings. Developing confidence based on their abilities, whether in academics, sports, or community efforts, will foster a sense of self and independence not based on the family’s wealth.

For regular families intent on building wealth over generations, a healthy respect for the work it takes to build bank accounts, buy a home and create the stability needed for the future takes extra effort. Creating an estate plan with an experienced estate planning attorney can help you plan for the unexpected.

Reference: Barron’s (Feb. 7, 2025) “Teach Your Kids to Preserve Family Wealth, Not Squander It”

How to Address Cryptocurrency in Your Estate Plan

Cryptocurrency has become an increasingly prevalent part of personal wealth. This new asset class requires traditional tools, like wills and trusts, to be updated to account for the decentralized nature of digital assets. The many stories of people who lost millions, because they didn’t secure their own crypto, should serve as a warning to anyone who wants to bequeath their digital wealth. What to do is addressed in a recent article from Kiplinger, “Heirs Inheriting Crypto? Don’t Make It a Headache for Them.”

Probate is a genuine concern for crypto. Probate is the process of a court validating a will and distributing assets. It often takes a long time and can be expensive. The volatility of crypto makes the lengthy process of probate a serious concern. Delays in probate could create dramatic losses.

Access to cryptocurrency is another challenge. Ownership of digital assets is tied to private keys. A lost key means lost wealth. Since crypto, like Bitcoin or Ethereum, are decentralized and operate on blockchain technology. As a result, there’s no financial or trading institution to call for help. If the access is lost, so is the asset.

With traditional assets, designating beneficiaries is the simplest way to pass assets directly to heirs and skip probate entirely. To do this with crypto, you must log into your account and see if the platform allows beneficiary designations.

Some cryptocurrencies call this a Transfer on Death or TOD form. Fill out the form correctly and keep hard and digital copies for your records. Even if you never print any other documents, you may want to print these and keep them in a secure location.

Digital wallets are also part of crypto estate planning. Digital wallets store private keys required to access, send and receive digital assets. Some digital wallets don’t offer beneficiary designations, so you’ll need to be very diligent about keeping a record of access credentials and secure private keys.

You’ll need to include detailed instructions on accessing a digital wallet, including passwords, recovery phrases, or locations of physical devices, including your phone, tablet, or computer. Consider using an encrypted file or hardware wallet for private keys. Custodial services are available. However, be sure they offer the security you need.

Estate planning attorneys may recommend using a trust for digital assets to be sure that they are managed and transferred without court involvement. Your estate planning attorney will explain how a revocable living trust may help you retain control of your crypto while you are living and provide directions for how you want it to be distributed after your death.

Just as you need to fund the trust by retitling assets for a traditional asset, you’ll need to move your cryptocurrency to a wallet owned by the trust. You may need to create a new wallet under the trust’s name if you can’t transfer funds to an existing wallet.

The trust will need a successor trustee. This trustee must know how private keys and recovery works for digital assets. They’ll oversee keeping your private keys and other information safe and how to access wallets or exchanges holding your wealth.

Your will should not include account numbers or wallet addresses, as they become part of the public record during probate. You’ll need another document to contain the information for your trustee to access the digital assets. If you own crypto or less well-known types of digital assets, providing access information and specific directions will be even more critical.

Speak with an estate planning attorney who has experience with digital assets. They’ll help you protect these assets, so they aren’t lost if the unexpected should occur.

Reference: Kiplinger (Feb. 16, 2025) “Heirs Inheriting Crypto? Don’t Make It a Headache for Them”

Estate Planning Is Essential for Unconventional Couples

A sad story appears in a recent issue of The Parkersburg News and Sentinel, “Legal-Ease: ‘How things might have been.’” It explains what happens to a couple who had lived together for three decades but never planned for each other’s illness or death.

When Bill became ill, his overbearing brother commandeered the hospital room and refused to let Bill’s companion of thirty years, Denise, visit. When Bill died, the same brother barred Denise from the funeral home. Denise was left out of Bill’s obituary and made to leave the home she and Bill had lived in for many years. The brother cleaned out the entire house. He also took the couple’s beloved dog.

Bill’s brother was well within his legal rights to do all of these things, since the couple had never done any estate planning to protect each other. There are many things that they could have done to protect each other.

Bill and Denise should have created and executed medical powers of attorney, naming each other to make medical decisions when they could not make their own decisions. This document would have given Denise the legal power to be in Bill’s hospital room and talk to his physicians. It would also have ensured Denise’s ability to visit Bill and arrange care for him either in a nursing home or at home.

They could have also used the Medical Power of Attorney to nominate each other to be appointed by a court as a guardian if ever needed, avoiding Bill’s brother’s taking control of care by a court order.

If the couple had created Living Wills stating their choices for end-of-life care, each could have made sure they knew what the other wanted and ensured their wishes were followed. For example, a Do Not Resuscitate (DNR) order is used to prevent healthcare providers from performing CPR on patients if they have a heart attack while incapacitated. CPR can leave patients with broken ribs and punctured lungs, and some elderly patients or those near the end of life often choose not to have CPR. Without a DNR order, healthcare providers or emergency responders must, by law, perform CPR.

At the very least, Bill and Denise should have each signed a Durable Power of Attorney, naming each other as their representative for all legal and financial matters. This would have allowed Denise to take care of Bill’s financial and business matters. Bill could have also added a provision in the POA stating that he did not want his brother to be involved.

For unmarried couples, trusts are used to provide protection for the surviving partner. For instance, if the house had been put into a trust with Denise as a trustee, Bill’s brother would not have ownership of the home, and Denise would not be unhoused.

Bill and Denise could have named each other as beneficiaries on a variety of financial accounts, including life insurance, IRA accounts and investments. Upon Bill’s death, these assets would have been paid directly to Denise.

If Bill and Denise had used wills to name each other as executors as well as heirs, they could have left all their worldly possessions to each other and served as administrators of each other’s estate. While a will is not as bullet-proof as a trust, having a will could have protected Denise from being left out in the cold.

Regardless of marital status, couples who want to take care of each other throughout their lives should meet with an estate planning attorney to protect each other. Death and incapacity aren’t limited to married couples, after all.

Reference: The Parkersburg News and Sentinel (Jan. 8, 2025) “Legal-Ease: ‘How things might have been’”

Do You Need a Will or a Trust?

The start of a New Year is accompanied by wishes to make life better. Planning for the future and protecting the family means addressing your estate plan. A recent article from Parkland Talk, “Start the New Year Right: Why Estate Planning Should Be Your Top Resolution for 2025,” explains the basics of estate planning.

Everyone should have a will, a document setting out instructions for the disposition of your estate after you have died. For many families, a trust is part of an estate plan. This is a document creating a separate legal entity that takes effect once the trust is created. Trusts are used to own and manage assets during and after life. With a trust, you can assign another person to take care of assets in the trust if you become incapacitated.

Wills and trusts are very different legal documents, performing different tasks. The trust is effective while you are living and after you have died, while a will is only executed after you have died. For most people, both a will and a trust make up the foundation of an estate plan. Here are some of the differences:

A will and the property bequeathed in the will are subject to probate, while assets in the trust don’t go through probate.

Wills become part of the public record and can be read by anyone. At the same time, trusts remain private, their contents known only to the estate planning attorney who created them, the grantor—the person who created the trust—and the beneficiaries.

Wills are used to name a guardian for minor children.

Trusts let you control when and how minor children, grandchildren, or other beneficiaries receive assets in the trust.

You manage property in your will, while the trustee manages assets in the trust. An irrevocable trust is managed by the named trustee, while the grantor may be the trustee of a revocable trust.

A court does not get involved with the trust, while the executor, the person named to carry out the instructions in the will, is court-supervised during probate.

A will is only effective upon the death of the testator, the person creating the will. There are no provisions in a will for what should happen if the person should become incapacitated because of illness or injury. The trust is a tool for incapacity.

Both the will and trusts have their uses in a comprehensive estate plan. An experienced and knowledgeable estate planning attorney will help create an estate plan to best suit your needs.

Reference: Parkland Talk (Jan. 6, 2025) “Start the New Year Right: Why Estate Planning Should Be Your Top Resolution for 2025”

Avoid Common Estate Planning Mistakes

Otherwise sound estate plans can be undermined by critical mistakes. A recent article from The National Law Journal, “Estate Planning Mistakes—2025 Annual Refresher—Part 3 [Podcast],” outlines how to avoid a number of common mistakes and protect the estate plan and the family from the effects of these missteps.

Not providing complete and accurate information. Transparency is critical when creating an estate plan. There are times when life’s circumstances may be sensitive and difficult to share with a professional.  However, secrets can tear estate plans to bits. If assets are being hidden to avoid paying taxes or if there is an unacknowledged biological child, the integrity of the estate plan could be jeopardized.

This is especially relevant in a blended family. If a prior marriage or a child from a prior marriage is not disclosed, the result could be litigation between heirs. Hidden debts or undisclosed assets may surface after death, leaving executors and heirs with tax liabilities and family strife.

Failure to coordinate estate and financial instruments. Financial investments, life insurance policies and estate plans are rarely all started and completed at the same time. However, these and other accounts need to be coordinated so they work together. If a will says all three children should receive equal shares of an estate, but only one child is named as a beneficiary on a life insurance policy, the three are not going to receive equal shares. Provisions with different instructions in trusts, wills and beneficiary designations will only lead to trouble.

This is a relatively easy problem to solve; it just takes time and attention. Review estate planning documents every few years, including wills, trusts, any account with a beneficiary designation, power of attorney documents and life insurance policies. An estate planning attorney is always willing to speak with a financial advisor and CPA to ensure that the estate plan and financial tools will work together.

Talk with your family about your estate plan. A lack of trust and communication leads to estate plan failure and family fights. If you are uncomfortable talking with family members, consider setting up a family meeting with your estate planning attorney. If the family is spread across the country, an online video meeting can be coordinated.

Even the best of intentions can lead to problems. If one family member is struggling financially while the others enjoy robust earnings, parents may wish to leave more of their estate to the child having money problems. Talking about this openly with all of the siblings while parents are still living is far better than giving the family a major jolt when expectations aren’t met. If the conversation doesn’t happen, a painful legacy may be created.

Relying on Joint Tenancy to transfer assets. It may seem like joint tenancy is an easy way to transfer assets upon death. However, it can undo the intentions of a will or a trust. Assets held in joint tenancy pass directly to the surviving tenant, transferring outside of the estate plan. If a parent puts one child’s name on a joint account but not others, the child on the account is under no legal obligation to share the asset with their siblings, setting the stage for family discord and often, litigation.

Joint tenancy should be reviewed along with all other ownership and estate planning documents to consider how it will impact the estate plan. Revocable trusts may offer the same flexibility, while also ensuring that assets are distributed according to the intent of the overall estate plan.

Relying on informal agreements. A verbal promise between close family members may feel good. However, it won’t be enforced if one party fails to live up to their promise. This situation arises frequently when family heirlooms or personal possessions are promised but end up in another person’s hands. Documenting these promises and discussing decisions with heirs can avoid disputes and damaged relationships.

Effective estate planning requires attention to detail, communication and the guidance of an experienced estate planning attorney. Ensuring that the estate is properly planned has the added bonus of protecting the relationships between family members, which is the most valuable legacy of all.

Reference: The National Law Journal (Dec. 17, 2024) “Estate Planning Mistakes—2025 Annual Refresher—Part 3 [Podcast]”

Avoid Common Estate Planning Mistakes

Otherwise sound estate plans can be undermined by critical mistakes. A recent article from The National Law Journal, “Estate Planning Mistakes—2025 Annual Refresher—Part 3 [Podcast],” outlines how to avoid a number of common mistakes and protect the estate plan and the family from the effects of these missteps.

Not providing complete and accurate information. Transparency is critical when creating an estate plan. There are times when life’s circumstances may be sensitive and difficult to share with a professional.  However, secrets can tear estate plans to bits. If assets are being hidden to avoid paying taxes or if there is an unacknowledged biological child, the integrity of the estate plan could be jeopardized.

This is especially relevant in a blended family. If a prior marriage or a child from a prior marriage is not disclosed, the result could be litigation between heirs. Hidden debts or undisclosed assets may surface after death, leaving executors and heirs with tax liabilities and family strife.

Failure to coordinate estate and financial instruments. Financial investments, life insurance policies and estate plans are rarely all started and completed at the same time. However, these and other accounts need to be coordinated so they work together. If a will says all three children should receive equal shares of an estate, but only one child is named as a beneficiary on a life insurance policy, the three are not going to receive equal shares. Provisions with different instructions in trusts, wills and beneficiary designations will only lead to trouble.

This is a relatively easy problem to solve; it just takes time and attention. Review estate planning documents every few years, including wills, trusts, any account with a beneficiary designation, power of attorney documents and life insurance policies. An estate planning attorney is always willing to speak with a financial advisor and CPA to ensure that the estate plan and financial tools will work together.

Talk with your family about your estate plan. A lack of trust and communication leads to estate plan failure and family fights. If you are uncomfortable talking with family members, consider setting up a family meeting with your estate planning attorney. If the family is spread across the country, an online video meeting can be coordinated.

Even the best of intentions can lead to problems. If one family member is struggling financially while the others enjoy robust earnings, parents may wish to leave more of their estate to the child having money problems. Talking about this openly with all of the siblings while parents are still living is far better than giving the family a major jolt when expectations aren’t met. If the conversation doesn’t happen, a painful legacy may be created.

Relying on Joint Tenancy to transfer assets. It may seem like joint tenancy is an easy way to transfer assets upon death. However, it can undo the intentions of a will or a trust. Assets held in joint tenancy pass directly to the surviving tenant, transferring outside of the estate plan. If a parent puts one child’s name on a joint account but not others, the child on the account is under no legal obligation to share the asset with their siblings, setting the stage for family discord and often, litigation.

Joint tenancy should be reviewed along with all other ownership and estate planning documents to consider how it will impact the estate plan. Revocable trusts may offer the same flexibility, while also ensuring that assets are distributed according to the intent of the overall estate plan.

Relying on informal agreements. A verbal promise between close family members may feel good. However, it won’t be enforced if one party fails to live up to their promise. This situation arises frequently when family heirlooms or personal possessions are promised but end up in another person’s hands. Documenting these promises and discussing decisions with heirs can avoid disputes and damaged relationships.

Effective estate planning requires attention to detail, communication and the guidance of an experienced estate planning attorney. Ensuring that the estate is properly planned has the added bonus of protecting the relationships between family members, which is the most valuable legacy of all.

Reference: The National Law Journal (Dec. 17, 2024) “Estate Planning Mistakes—2025 Annual Refresher—Part 3 [Podcast]”

How to Balance Love and Legacy in a Second Marriage?

Getting married for the second or even third time presents many challenges for estate planning, finances and family dynamics. A thoughtful strategy can build a harmonious family and protect legacies, according to a recent article from The Street, “Love and Legacy: Balancing the Two in a Second Marriage.”

Finances can be a flash point for subsequent marriages, especially if spouses have different levels of assets. Mature couples typically come to a second marriage with children, houses, retirement accounts, alimony and credit card debt. How will assets be distributed, what will inheritances look like and how will the couple plan for the future? These are just a few questions to address when marrying again.

Other issues to consider:

Home ownership. Should the new spouse be added to the deed if one spouse owns a home and the other spouse moves in? This has implications for estate planning. If both spouses are on the deed, what is the plan upon the death of the first spouse? If the home automatically passes to the surviving spouse, the children of the deceased spouse may be excluded from their share of the home ownership.

Beneficiary designations. Marrying again with healthy retirement accounts requires looking ahead. If the new spouse is named a beneficiary, are the deceased’s children disinherited? What if a spouse wishes to leave money to their biological children only. However, the surviving spouse won’t have enough money to live on?

Inheritance rights. Balancing the inheritance of biological children while ensuring that the spouses have protected each other takes advance planning. Without it, a surviving spouse could be left homeless or dependent upon adult children for support. An estate planning attorney may recommend a marital trust to provide for the surviving spouse, while ensuring an inheritance for the children.

Social Security benefits. For those who counted on the higher benefit level of their first spouses, remarrying may impact SSI, surviving spouses, or divorced surviving spouse benefits. This is something to explore before marriage, since it can’t be undone.

These issues may feel overwhelming. However, tackling them before marriage can prevent friction between the couple and stepchildren. Among the many plans for a wedding, an appointment with an estate planning attorney should be made to create a personalized estate plan to address your unique situation, including children from prior marriages.

Your meeting should also include a complete review of all wills, trusts, beneficiary designations and retirement plans. Ensure that your documents reflect your new marriage and distribute assets according to your wishes.

Blended families are complicated and require personalized estate, tax, and financial planning. The increasing numbers of people choosing to love again and blend their families show how much people value being part of a family. Protecting your family with a well-thought-out estate plan can start a new marriage on the right foot.

Reference: The Street (Dec. 19, 2024) “Love and Legacy: Balancing the Two in a Second Marriage”

Can You Make a Will in a Video?

Jesse Beck had no will at age 45. However, he did make a video in which he stated he wanted his brother Jason to inherit everything if he died. Four days after making the video, Jesse was struck and killed by a car. Not surprisingly, estate litigation ensued after his death. The Montana Supreme Court ruled that video doesn’t count as a will, according to The Wall Street Journal article, “Yes to Text Messages, No to Video: What Counts as a Will.”

Despite the article’s title, you definitely don’t want to create a testamentary document using a text. A lack of understanding about what is acceptable as a will often leaves heirs with legal disputes and huge headaches. Beck’s brother won’t inherit his estate. It will go to his daughter. He would have done far better to have a will and an estate plan.

The gold standard is a paper will prepared by an estate planning attorney who knows the state’s laws and is signed with ink—known as a “wet signature.” While some states recognize holographic wills written and signed by hand on paper, doing so puts your wishes at risk.

Nearly half of all Americans don’t have a will. Some states recognize electronic wills, and legislation is pending in a few other states. However, the electronic will must be text and not audio or video. There are growing concerns about using artificial intelligence and deepfakes to create fraudulent electronic wills or alter electronic wills without the testator or heirs being able to identify the changes.

When someone dies without a will, known as intestacy, their state’s laws determine who inherits their estate. If Jesse wanted his brother to inherit his estate, he should have had a will created with an experienced estate attorney. While his own estate may have been modest, there is a wrongful death case pending against the vehicle involved in Jesse’s fatal accident. Alexia’s inheritance may be in the millions.

Different state courts have ruled differently regarding non-paper wills. An appellate court in Michigan accepted a digital will created with a note in an Evernote app on the decedent’s mobile phone.

Montana doesn’t have an electronic or e-will statute. However, writing may be treated as valid if there is clear and convincing proof the decedent wished it to be a valid will. In a case different from the Beck matter, a Montana court rejected using a text message as a will.

The bottom line: unless you intend to subject your family to a lot of legal wrangling and spend a lot of time in court, it’s best to meet with an experienced estate planning attorney and have a will prepared. You’ll also want to speak with the attorney about related documents, including Power of Attorney, Healthcare Proxy, Living Will and, if applicable, Trusts.

Reference: The Wall Street Journal (Dec. 14, 2024) “Yes to Text Messages, No to Video: What Counts as a Will”

What Happens If Aging Parents Won’t Discuss or are Ill-Informed about Estate Planning?

For the past 10 years, a librarian in southern California has lived in a no-win situation. Andre, one of four siblings, agreed to serve as executor—but their parents won’t say anything about their assets, their wishes, or their estate plan. This situation, detailed in the article “Estate Plan Crisis: What To Do When Your Parents Won’t Communicate” from next avenue, is common and will test sibling relationships unnecessarily.

The only thing Andre knows is that each parent has a financial and medical Power of Attorney for the other. This legal document names a person, referred to as the “agent,” who can fulfill the person’s wishes if they become incapacitated. If you have a POA, you should also have a successor POA. In the case of Andre’s parents, where both parents are elderly, having a backup is paramount, as it’s entirely possible both parents could be incapacitated at the same time. In keeping with their closed-door policy, Andre’s request for an alternate POA was denied, with parents claiming the executor would automatically have power of attorney if they become incapacitated. This is simply wrong. The POA dies with the person.

Conversations with Andre’s siblings were as fruitless as the conversations with their parents. They didn’t want to get involved, even though they may be more qualified than Andre to manage an estate.

Why would parents do this to their children? Many elderly people say they don’t want to create an estate plan to be a burden on their children. However, this is completely backwards. Having an estate plan created by an experienced estate planning attorney reduces the burden, giving offspring the tools to carry out their parent’s wishes and making life easier for them.

Another common mistake: people think children or spouses have the automatic right to make medical or legal decisions in a crisis. Without the correct legal documents (POA, HIPAA Release, Advanced Directive or Living Will, Healthcare Proxy and others), spouses and children have no right to speak with physicians or be involved with medical decisions.

If the correct estate planning documents are not in place, someone else makes a host of decisions. Doctors may make life-or-death decisions. A guardian will be in charge of an incapacitated person’s finances. Courts will appoint administrators to distribute assets. Minor children will be raised by whoever the court believes will be their best caretakers.

Estate planning need not be complicated. It starts with a consultation with an estate planning attorney, who will explain what is needed in your state. Their guidance will prevent disasters, like the one facing Andre.

• A few pointers:
• Be consistent with beneficiaries, titles and deeds. All estate planning documents, including wills, beneficiary designations, trusts and transfer-on-death designations, need to work together. For instance, if you name a nephew as the beneficiary designation on your IRA and then name your niece to receive the same IRA in your will, the designation on the IRA will override your will. Your niece and nephew may not speak to each other again.
• If you move to another state, you may need to revise estate documents, since these are state-specific laws.
• Most importantly, meet with an estate planning attorney, have an estate plan created and talk with your executor and your heirs about your plan. More communication, not less, is a worthy legacy.

Reference: next avenue (Dec. 2, 2024) “Estate Plan Crisis: What To Do When Your Parents Won’t Communicate”

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”