Warren Buffett assails 'dynastic wealth,' cuts future generations from estate

In a letter to Berkshire Hathaway shareholders, Warren Buffett announced he is giving away over $1 billion in shares split between four foundations as part of his annual pledge to hand over his vast wealth.

Over half of the shares are being given to the Susan Thompson Buffett Foundation with the remaing shares going to the Sherwood Foundation, the Howard G. Buffett Foundation and NoVo Foundation.

While he has given away over 57% of his shares of Berkshire Hathaway since 2006, his yearly donations came with a surprise. Buffett revealed that he is not interested in handing off his wealth to any family members beyond his three children.

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At age 94, Buffett explained that his children are now ages 71, 69 and 66. While he has little concern that his children would be charitable with his estate, he does not want to hand his wealth off to future generations. He also said he does not believe in creating “dynastic wealth.”

“I’ve never wished to create a dynasty or pursue any plan that extended beyond the children. I know the three well and trust them completely. Future generations are another matter. Who can foresee the priorities, intelligence and fidelity of successive generations to deal with the distribution of extraordinary wealth amid what may be a far different philanthropic landscape?” Buffett said. “Still, the massive wealth I’ve collected may take longer to deploy than my children live. And tomorrow’s decisions are likely to be better made by three live and well-directed brains than by a dead hand.”

Buffett said that in case his children are unable to distribute his wealth while they’re still alive, he has three trustees who will be entrusted to his estate.

Buffett acknowledged that his children are financially well off, but that he was proud of their giving nature.

“With this philosophy, I have lived the way I wanted to live since my late 20s, and I have now watched my children grow into good and productive citizens. They have different views in many cases from both me and their siblings but have common values that are unwavering,” he said. “Susie Jr., Howie and Peter have each spent far more time directly helping others than I have. They enjoy being comfortable financially, but they are not preoccupied with wealth. Their mother, from whom they learned these values, would be very proud of them.”