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Downside of windfalls

by | Oct 24, 2013 | Inheritances |

If someone in Orlando hears they are coming into an unexpected windfall in the form of a substantial inheritance, it may present a significant shock to that individual. An unexpected surprise of this nature may negatively affect someone. However, by planning appropriately, individuals can help the windfall augment their life in a positive way.

One of the first steps that a person who comes into a windfall should take is to begin structuring a plan. Financial knowledge is necessary to make the most of the inheritance. It is also necessary to separate the emotional and financial aspects of the change. Many individuals who come into a big inheritance wind up losing their windfall because they allow their emotions to take over. However, financial planners say that it is important to address the emotional aspect of coming into new money before attempting to manage the money. When they do not take time to concentrate on the emotional aspect, they may make foolish decisions, such as believing that they do not have enough money and overreacting or overspending.

Another important aspect of dealing with a windfall is developing a plan. Developing a plan can help an individual gain perspective regarding the windfall. An individual may be able to identify his or her fears regarding the inheritance, as well as goals that the inheritance may be able to assist with.

Florida estate planning attorneys may be able to discuss how a person can make the most of their inheritance. They may structure a trust or estate plan that helps to provide for the needs of the beneficiary, including medical expenses, educational costs and basic sustenance. Additionally, the estate plan may also be structured in a way to account for future generations.

Source: Forbes , “Overcoming ‘Money Shock’ From An Inheritance Windfall“, Judy Martel, October 22, 2013