Many of us like to fantasize about winning the lottery. We muse with our friends about how we might spend the money, and we dream about never wanting for anything ever again.
The odds are against us, of course, at least as far as the lottery goes. But that doesn’t mean – at some point in our lives perhaps – we won’t actually come into a major amount of cash, usually in the form of an inheritance, or perhaps through the settlement of a legal claim.
Planning before receiving such a windfall is critical, if you want to keep it and have it provide for you for the rest of your life and for your loved one’s after you are gone.
Most people who receive a windfall lose it almost as quickly as they receive it.
If you see a windfall coming your way, make these plans:
1. Consider putting any large windfall you receive into an asset protection trust, first and foremost. You may even want to consider appointing a co-trustee to govern the trust alongside you so you can honestly tell friends and family that you do not have unrestricted control to your assets when they come asking for handouts.
If you anticipate receiving a windfall and need legal assistance, or if you’d like to ensure your family stays out of court and out of conflict if and when something happens to you , schedule a Family Wealth Planning Session,™ during which we can review your wishes.