“You suddenly have money! Maybe the money is from an inheritance, maybe it is from a gift, or maybe you were just plain lucky and won the lottery. Whatever the source, having new-found money can be both a joy and a worry. What should you do with all this wealth?”
WMUR.com’s recent article, “Handling unexpected wealth,” says the first thing to do is to really step back and review your finances.
Depending on how much you have received, you could be in a very different place financially. You should take a look at your net worth and cash flow.
What these items show you and how much access you have to your new funds will affect the extent to which your finances might change.
You might have received your assets through a trust, and the trust provisions will dictate how you get those assets. Depending on these instructions, you might not have control over the funds. It’s the trustee who will decide this based on the trust document.
Get a copy of the trust and review the terms with an estate planning attorney. This will give you some idea of the income the trust will provide you.
It’s a different set of issues when inheriting or receiving stock as a gift. Look at your investment strategy to see if the stock has a place in it.
This will help you decide whether to keep the stock or sell it. Instead of stock, you might have inherited real estate. The decision here is the same as to whether to sell the property or keep it.
Your inheritance may also be plain old cash. Think about your future needs and how long your money must last.
Take the time to come up with a well-thought-out plan for both your current needs and your future goals.
Finally, any newly acquired money can also affect your estate plans. Call (305) 443- 3104 to set up an appointment to go through your plan and strategies.
Reference: WMUR.com (December 12, 2019) “Handling unexpected wealth”