Required

Buffett on Raising Heirs

One thing that wealthy parents routinely worry about when giving their children a large inheritance, is whether it will stifle any motivation to go out and earn their own fortunes. The children might stop working upon receiving an inheritance, and waste it to pay for an extravagant lifestyle.

The fear is not completely unjustified. That is sometimes exactly what happens. However, there are many other times, when nothing like that occurs. Recently, Warren Buffett took to the stage and offered some advice about how to prepare heirs, so that it will not happen, as Forbes reports in “Warren Buffett’s Advice On How To Raise Well-Adjusted Heirs.”

Buffett’s advice includes:

 

  • Do not try to use the terms of a trust to force children into certain careers. Let them do what they want for work and they will be more likely to stay at it, after receiving an inheritance.
  • Tell heirs about the details of your will to make sure they understand their responsibilities and to talk about whether they think it is fair. Do not surprise them with your estate plan, after you pass away.
  • If you have more than one child, do not force your children to give to charity as a group. Letting them all choose charities for themselves helps them to get along better.
  • You can give your children too big of an inheritance. Ideally, they should be given an inheritance that is large enough to do anything, but not so large they can do nothing.

Reference: Forbes (June 1, 2018) “Warren Buffett’s Advice On How To Raise Well-Adjusted Heirs.”

Hear From Our Clients
tes-prev
tes-next

I heard Cindy’s presentation at a Senior Luncheon at my church, and was very impressed. She helped my daughter and me understand many aspects of elder law. Josh has also been very helpful in my planning to enter an independent living situation . I have told many friends about them.

- Charlotte

The very best elder law attorney and staff anyone could ever ask for! I have referred a number of clients to Cindy and she never disappoints. She is kind, caring, and extremely thorough in making sure everything is completed as it should be. I highly recommend Cindy for anyone needing lawyer services; she truly goes above and beyond for every client she helps and has had a huge impact in so many peoples’ lives. Thank you, Cindy and staff, for everything that you do- I’m so glad to know you!

- Kerri

Cindy and the Nelson Elder Care Law team are trustworthy and helpful. They are the experts in elder care law. At Leaf Cremation, we entrust our families to the care of the Nelson team when their services are needed.

- Pierce

Josh Nelson, and his staff, have been amazingly helpful to our family. The ins and outs of nursing homes, the rules and regulations that govern Medicare and Medicaid are daunting and the folks at Nelson Elder Care Law have been informative, responsive, and above all, empathetic. I cannot emphasize enough how their service has taken a weight off of our shoulders especially during a world pandemic that has targeted nursing homes across our country. I highly recommend retaining Josh and his firm!

- Marcia

I had a simple legal question to them that I needed answered and they very helpful in giving me the information I needed. I highly recommend them and will reach out to them if I need more advice or assistance. Thank you for taking your time to just answer a couple of questions I had!

- Ben