Suddenly coming into money can be both a blessing and a curse. Whether you just signed a multiyear, multimillion dollar employment contract, you wrote a hit son, became a YouTube or Instagram influencer, received a significant inheritance, expect a large check from a lawsuit verdict or divorce settlement, or just won the lottery, you need help from professionals to avoid negative consequences from your windfall.
Below are four estate and legacy tips for those who have become suddenly wealthy to help you keep your legacy going strong, long after you are gone.
- Get professional help on investing: Although many of us may think differently, managing money is complicated. Whether you have some experience handling smaller assets or it is completely new to you, make sure you make the most of your new wealth by seeking professional advice.
- Do not make sudden financial decisions: The newly wealthy often become very popular, receiving requests for financial assistance from friends, relatives, charities, and others. While giving gifts to them is admirable – and sometimes it is hard to say “no” – don't be hasty. Give yourself time to process your new financial normal; you will always have time to make gifts or purchases at your own pace.
- Think carefully about money management: Your newfound wealth can help you build a legacy. The possibilities may be limitless. Depending on the amount, you can provide financial benefit to charities, family, friends, or opportunities for businesses and education. The best plans, however, are those that are well thought out and not a knee-jerk reaction.
- Work with an estate planner: Working with an estate planner – someone who understands applicable tax laws, tools for asset protection, and the legal requirements for valid plans – is key. He or she can help craft an estate plan that not only reflects your values, but also protects your wealth and passes your assets to those you want, the way you want.
Don't Do This Alone
Receiving a large sum of money can be very exciting and overwhelming. If you have any questions about managing your new wealth and protecting these assets, give us a call today so we can help you craft a plan that makes the most out of your newfound wealth.