In a letter published late last month, Warren Buffett advised rich families not to leave their children too much inheritance. This according to an article in Yahoo Finance.
“After much observation of super-wealthy families, here’s my recommendation,” Buffett wrote, “Leave the children enough so that they can do anything but not enough that they can do nothing.”
Buffett’s comments were reportedly echoed by others, including Riverpoint Wealth Management managing partner Timothy McGrath: “This is a newer trend amongst this group where the focus is on giving a large portion of their wealth away during their lifetimes or at death,” adding that he is seeing a shift in mindset toward philanthropy. He noted seeing, “client’s mindsets change as their wealth grows, where at lower levels they are more focused on passing assets to their families, and as assets continue to grow above their family’s needs, they become more focused on providing additional dollars to causes they are passionate about.”
Buffett, whose net worth is estimated to be $101 billion, reportedly announced last week that he was halfway to his goal of distributing more than 99% of his net worth to charity.