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What to Do With a Cash Windfall

Many of us like to fantasize about winning the lottery. We talk to our friends about how we might spend the money, and we dream about never wanting for anything ever again. Although the odds of winning the lottery are very small, there are other ways that we might come into a major amount of cash in our lives, usually in the form of an inheritance, from a business sale or perhaps even though the settlement of a legal claim.

If you do receive such a windfall, planning ahead beforehand is critical, so that it can be available to benefit yourself, and also your loved ones even after you are gone. Unfortunately, without planning, most people who receive large amounts of money lose it almost as quickly as they receive it.

If you see a windfall coming your way, consider the following steps.

1. Consider putting any large cash amounts you receive into an asset protection trust.

You may even want to consider appointing a co-trustee to govern the trust alongside you. This will mean you can honestly tell friends and family that you do not have unrestricted control to your assets when they come asking for handouts.

2. Hire an advisor you trust to help you invest the assets you receive in a manner that is aligned with your values.

This will support you in using the money in the long-term life you desire; if you need recommendations to a trusted investment advisor, contact us.

3. Update all of your own estate planning documents, including your Will, Revocable Living Trust, Health Care Directives and Power of Attorney, and establish a relationship with a personal estate planning lawyer.

This is so if and when anything happens to you, your family will be supported and they can stay out of court and out of conflict.

 

This article is a service of attorney Myrna Serrano Setty. Myrna doesn’t just draft documents, she helps you make informed and empowered decisions about life and death, for yourself and the people you love.  That’s why we she offers a  Planning Session, during which you will get more financially organized than you’ve ever been before, and make the best choices for the people you love. You can begin by calling our office today at (813) 514-2946 to schedule a Planning Session.