A major development concerning the philanthropic goals of legendary investor Warren Buffett prompts the author of this article to consider how to align structures around giving for the next generation of wealth holders.

The following article comes from Wes Karger, who is the co-founder and managing partner, at TwinFocus (more on the author and the firm below). 

The editors are pleased to share this content; the usual editorial disclaimers apply to views of outside contributors and we value feedback. Email tom.burroughes@wealthbriefing.com and amanda.cheesley@clearviewpublishing.com

Recent reports have drawn renewed attention to the philanthropic directive Warren Buffett handed to his three adult children in 2024: to give away $150 billion within 10 years of his passing, via a charitable trust/private foundation. An additional provision says they must unanimously agree on how the funds are distributed.

Many wealthy families today recognize the urgency Warren Buffett has long emphasized: deploying capital meaningfully within a relevant timeframe. That urgency is even more pronounced in 2026, given the current administration’s posture toward nonprofits and the evolving tax implications for private clients under the One Big Beautiful Bill.

While the intent behind the Buffett family’s charitable structure is very much on trend, the governance structure itself is relatively uncommon, particularly at such a massive scale. What distinguishes Buffett’s approach is not the use of a trust for philanthropy, which is common among ultra-high-net-worth families, but the degree of discretion and responsibility he has placed in the hands of his children, coupled with a clear sunset mindset. It prioritizes active, present-day stewardship over dynastic permanence.

A forward-thinking approach

The structure Warren Buffett put in place is very much aligned with how the next generation of wealth thinks about inheritance. In fact, while they may not fit the profile of what most would consider next gen, the Buffetts are ahead of many families in this regard.

At our firm, we primarily serve first-generation wealth creators, including those who have built their wealth in financial services, as technology entrepreneurs, and as CEOs of both public and private companies. And there is a strong and consistent philosophy when it comes to philanthropy and inheritance across this group.

This cohort tends to place significant emphasis on avoiding dynastic wealth within charitable entities, preserving and motivating the next generation, and instilling family values and legacy, not just transferring capital. They tend to view wealth as a tool to be deployed thoughtfully, rather than an entitlement to be inherited. 

Buffett’s insistence that his children give the money away rather than inherit it outright aligns closely with how these families think about wealth and responsibility. Where this approach diverges from previous generations, including many of Buffett’s contemporaries, is that earlier models often prioritized asset preservation, equal division among heirs, and long-lived family foundations.
 
By contrast, our first-generation wealthy clients are far more focused on impact, alignment, and intentional limits, designing structures that encourage stewardship, purpose, and engagement across generations rather than permanence for its own sake.

Managing conflict in philanthropy

Buffett’s unanimity requirement is powerful. It is also extremely difficult to implement in practice. Philanthropy is more than capital deployment; it is a planning discipline that can connect families in a constructive and harmonious way. 

Disagreements are inevitable, especially across generations. It becomes more pronounced as second-generation family members marry, form households, and develop philanthropic priorities shaped by spouses and children. Families that manage this well focus less on avoiding conflict and more on building durable decision-making frameworks.

Our clients that have been successful separate values alignment from grant making decisions. First, they establish a shared philanthropic mission. Specific causes come later. Clear governance structures also matter. These include committees, rotating leadership roles, and third-party charitable facilitation to help depersonalize sensitive discussions.

The objective is a process that allows disagreement without paralysis. Many families allocate a core pool of capital toward shared priorities. Smaller pools are reserved for individual second-generation families or branches to pursue independent charitable interests. This structure preserves cohesion without forcing artificial consensus.

Setting intentions while remaining flexible

Our most valuable guidance to families when outlining philanthropic wishes in their estate documents is simple. Do not over engineer outcomes. Design principles instead. This applies directly to core Phase Two estate documents, like a last will and testament, revocable living trust, and assignment of assets, as well as the selection of a trustee. The focus should be on trusted decision makers, strong judgment, and clarity of intent.

The most effective estate plans articulate values with precision, providing guardrails rather than rigid instructions and emphasizing purpose over rigid prescription. Many families document this guidance through Memorandums of Understanding directed to trustees, which evolve over time as second and third generations mature, gain experience, and develop perspective.

Flexibility here is essential: social conditions shift, economic frameworks change, family dynamics evolve. Estate documents must be built to adapt across decades. The environment families are planning for today is uncertain, and uncertainty is only likely to intensify.

We consistently advise families to explain the reason behind their philanthropy rather than dictate exact outcomes. When heirs understand the motivation, they are better equipped to exercise judgment in real time. This approach empowers thoughtful action and reduces future conflict by replacing rigid compliance with shared responsibility.

Actionable next steps for successful family philanthropy

We believe the strongest philanthropic legacies are grounded in trust, clarity, and adaptability. Similarly, estate documents should be integrated as a compass rather than a script.

We work closely with families through annual philanthropic summits to reassess goals and adjust giving budgets accordingly. Many of our clients use an interlinked hybrid structure: combining private foundations that have long-term family control and clearly defined governance objectives with donor-advised funds for flexibility, simplicity, and anonymity.

We often design annual “Common Cause Campaigns,” which bring the full family together around a defined set of priorities. Larger allocatable budgets are decided collectively. The approach reinforces shared purpose while maintaining flexibility, autonomy, and long-term sustainability in family philanthropy.

Across the board, we are seeing a shift among founders and first-generation wealth creators away from institutions designed to last forever and toward time-bound or purpose-bound vehicles. At the same time, their preferences evolve as children mature and develop their own philanthropic interests. What we can learn from the Buffetts is that inheritance is no longer about preserving a dynasty, but rather about creating lasting impact. 

About Wesley Karger

A nationally recognized leader in the family office industry, Wesley (Wes) Karger has been serving financially successful families for over two decades. As co-founder and managing partner of TwinFocus, he serves as a trusted and valued advisor to the firm’s key clients, and his informed counsel and personal follow-through are the decisive factors in helping high-net-worth families and their foundations achieve success across multiple generations. 

Wes advises private and institutional investors on their investment portfolio risk-management strategies and works closely with clients to develop strategies that encompass family governance, intergenerational planning and investment education. He is also a member of the firm’s Executive Management and Investment Committee.

About TwinFocus

TwinFocus is a premier boutique multifamily office for global ultra-high-net-worth investors, entrepreneurs, their families, professional investors and select institutions looking to preserve, enhance and transfer wealth across multiple generations. TwinFocus’ proprietary total balance sheet approach and direct investing platform incorporate the nuances and complexities of all family members. The firm integrates all aspects of tax, legal, investment, philanthropic and intergenerational planning in its tireless pursuit of establishing enduring legacies.

Headquartered in Boston, TwinFocus oversees more than $12 billion of assets and manages diversified investment solutions that include exclusive access to unique direct investments in private equity and real estate. For more information, visit www.TwinFocus.com

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