Warren Buffett’s Succession Plan: Key Lessons for Investors

Few of us may ever have as much money to worry about as investing legend Warren Buffett. But just as we could all learn a thing or two from Buffett’s investment strategy, there are useful lessons in how the 94-year-old is preparing for what happens next.

Key Takeaways

• Warren Buffett plans to give away most of his fortune and has named his three children to succeed him.
• Buffett says he revises his will every couple of years.
• He also shares each new will with his heirs and invites their input before he signs.

Buffett’s Plan for His Vast Wealth

Warren Buffett’s goal is to give the great bulk of his fortune to worthy causes. To succeed him in his philanthropic efforts he has appointed his three children, all of whom he says he trusts completely. (By contrast, see the recent court battle involving 93-year-old media baron Rupert Murdoch and his eldest children over the disposition of his estate.)

The three Buffett children, now age 66, 69, and 71, have already received a modest, by billionaire standards, inheritance from Buffett’s late wife, of $10 million each.

“These bequests reflected our belief that hugely wealthy parents should leave their children enough so they can do anything but not enough that they can do nothing,” he explained in a November 2024 Berkshire Hathaway news release.

Estate Planning Takeaways

Buffett also shared some thoughts on estate planning in the news release issued by his company. Here are three important takeaways.

1. Keep Your Estate Plan up to Date. Buffett said he revises his will “every couple of years,” usually making minor changes. You may not need to update your will that often, but it’s a good idea to at least review it. (And if you don’t have a will yet, now could be the time to make one.)

“Most people should review their estate planning documents and beneficiary designations every few years,” says Michael J. Garry, an attorney and certified financial planner with Yardley Wealth Management in Yardley, Pennsylvania. “Even if you don’t have a complicated estate plan, sometimes fiduciaries die or fall out of favor with you and your beneficiaries may follow vastly different life plans that make you consider adjustments. It doesn’t take very long to do it and you’ll have peace of mind afterwards.” 

2. Be Upfront With Your Heirs. Before signing a new will, Buffett noted that he shares it with his children and invites their input.

By being transparent now, you can head off unpleasant surprises and negative feelings later.

3. Consider What Happens Once Your Heirs Die, Too. Buffett said he has named younger, successor trustees to replace his children if they don’t live long enough to disperse his entire fortune. The rest of us probably don’t need to worry about that, but the lesson remains: No matter how carefully we plan, life can surprise us. So, where money matters are concerned, it’s always smart to have a Plan B, just in case.

The Bottom Line

In recent decades, Warren Buffett has become a role model to countless investors as well as one of the wealthiest people of our time. His approach to estate planning also provides valuable lessons as we look to pass on our own wealth someday—however humble it might be in comparison.