Warren Buffett said that many parents make terrible mistakes in the wills to their children.
William Vaughan explains why estate planning is in dire straits and what you can do about it so your loved ones can be set up for their inheritance.
Will Vaughan is a professional financial advisor working in wealth management, so he shed some light on this incredibly important subject where not enough people are completing wills and estate plans.
Since the dire situation of estate planning came up at the 2023 Berkshire Hathaway meeting, it made sense to unpack this confusing topic.
Will explained the difference between revocable and irrevocable trusts. Irrevocable trust means the grantor cannot change or end the trust after it has been created, while the provisions in revocable trust can be changed by the grantor or the originator of the trust.
In addition, Will explains whom the assets go to with stipulating beneficiaries in a 401k, IRA, and other financial accounts.
Will recommends people to get an estate planning binder and to consult with a professional as you increase your assets. While you can DIY a will and it can still be legal, it is likely a more comprehensive route to make sure an estate planning lawyer assists you.
Buffett said at this year’s meeting, “in my family, I do not sign a will until my three children have read it, understand it, and made suggestions. Now, my children are in their 60s and that would not have been a great success if I’d done the same thing in their 20s. It depends on the family; it depends on how the kids feel about each other.”
So make sure you do not forget to complete a will, as Will would recommend strongly! You’re never too young to fill out your will.
It was really kind of Will to share his professional insights with me, so thank you my friend!
If you’re interested in learning how to take control of your finances and start becoming an investor like Warren Buffett, check out my free PDF guide.
I look forward to making more investor friends! Add me on Instagram: michellemarki