“I want to give my kids just enough so that they would feel that they could do anything, but not so much that they would feel like doing nothing.”
~ Warren Buffett
Successful families share a powerful aspiration: to ensure their wealth empowers rather than diminishes the next generation’s drive for achievement. Warren Buffett’s insight cuts straight to the heart of this opportunity, revealing how strategic inheritance can become a catalyst for excellence rather than a cushion for complacency. For family enterprises, where prosperity carries both opportunity and responsibility, this principle offers a transformative path forward: structure inheritance to ignite possibility while fostering the desire to create, build, and lead. The result is a legacy that doesn’t just transfer wealth but also multiplies achievement and amplifies impact across generations. How, though, do family enterprises define “enough” in a way that maximizes opportunity while preserving drive? In this article, we discuss strategies and approaches to help you navigate these critical aspects of legacy planning. Read on.
The 'Enough' Equation
Deciding how much to pass on to the next generation represents one of the most nuanced challenges in legacy planning. For some families, “enough” means ensuring robust financial security coupled with opportunities for education and personal growth. For others, it might mean creating carefully calibrated incentives that promote self-reliance and entrepreneurial spirit while providing a foundation for success.
Structured inheritances, such as conditional trusts or incentive-based gifts, offer sophisticated mechanisms to encourage personal achievement while remaining true to family values. These tools can support meaningful goals like pursuing advanced education, launching innovative businesses, or engaging in impactful social work. The key lies in creating structures that empower the next generation while preserving their drive to achieve independently.
Living Legacies: Succession Planning Lessons from Warren Buffet & Bill Perkins' Die With Zero
The preceding discussion about Warren Buffett’s philosophy on inheritance takes on particular significance when considering succession planning. How does a family enterprise maintain smooth business operations while inspiring the next generation to actively contribute and grow instead of just passing on wealth through predetermined inheritance amounts? Some families address the issue through graduated ownership transfers that align with demonstrated capability and commitment. Others create clear pathways for the next generation to earn their stake in the family enterprise through specific achievements or milestones.
Bill Perkins’ “Die With Zero: Getting All You Can from Your Money and Your Life” philosophy offers complementary insights for families wrestling with this balance. His advocacy for lifetime giving aligns with Buffett’s emphasis on thoughtful wealth transfer. Family enterprises can nurture the next generation’s skills in wealth stewardship through thoughtful and proactive philanthropy during their active years, thus supporting their growth and contribution to the family legacy. This approach allows family enterprises to align with Buffett’s goal of empowering the next generation minus excessive dependency.
Beyond Business: Creating Philanthropic Legacies
Families seeking to follow Buffett’s advice can consider giving to charity as a means to create a lasting legacy. By involving the next generation in philanthropic decisions, families can teach valuable lessons about wealth responsibility while creating positive social impact. This approach can help address the concern about leaving “too much” by channelling wealth into charitable causes while still providing children with “enough” to pursue their ambitions.
The philanthropic component also offers a practical solution for families who wish to be intentional about their children’s inheritance while ensuring their wealth creates lasting positive impact. Through family foundations or donor-advised funds, parents can structure their legacy to support both their children’s development as well as their charitable objectives, effectively addressing Buffett’s balance between providing opportunity and maintaining motivation.
Putting this philosophy into practice can benefit both generations. Parents can enjoy the satisfaction of seeing their wealth make a meaningful impact during their lifetime, while children benefit from receiving support when they might need it most—during their own years of peak energy and opportunity. This timing allows the next generation to leverage inherited resources during their most productive years, potentially multiplying the impact of the wealth transfer through their own endeavours.
Concluding Thoughts
Warren Buffett’s insight on inheritance emphasizes “just enough” to spark ambition rather than complacency. Such an approach transforms wealth transfer into a chance to instill purpose and impact across generations. For family enterprises, defining “enough” is crucial. Thoughtful succession planning, philanthropy, and building structured inheritances can help family enterprises create frameworks that ignite possibilities and drive leadership for the next generation. The result? A legacy of multiplied achievements & successful stewardship.
ABOUT THE AUTHOR
As the Senior Wealth Advisor at Beacon Family Office at Assante, Cory Gagnon has supported successful family enterprises to preserve, protect and transition their wealth since 2011.
Cory’s personal objective as a Wealth Advisor is simple. He is committed to supporting families to take control of the areas of their lives that truly matter to them. This commitment revolves around using specific tools and strategies that enable families to take action with confidence which will support them through life’s critical transitions.
ABOUT THE AUTHOR
As the Senior Wealth Advisor at Beacon Family Office at Assante, Cory Gagnon has supported successful family enterprises to preserve, protect and transition their wealth since 2011.
Cory’s personal objective as a Wealth Advisor is simple. He is committed to supporting families to take control of the areas of their lives that truly matter to them. This commitment revolves around using specific tools and strategies that enable families to take action with confidence which will support them through life’s critical transitions.
Share this post:
KEEP READING?
Beacon Family Office at
Assante Financial Management Ltd.
Suite 519, 10333 Southport Road S.W.,
Calgary, AB T2W 3X6
