Estate Planning And Managing Unexpected Wealth Is Important
White Plains, NY (Law Firm Newswire) September 12, 2013 - Sudden wealth may be a six-figure sum for some estates, or may be a five-figure amount.
What every amount of sudden wealth has in common is that it is a "windfall" of sorts, separate from the expected financial shifts and therefore outside the recipient's financial comfort zone.
It is one of those scenarios that so many people play around with: what they would do if an unexpected windfall appeared in their life, a large sum of money came their way due to an inheritance, contract, business sale, lawsuit, lottery win, stock options sale or divorce settlement? While it can be entertaining to imagine, the truth is, few people are prepared to successfully manage large, unexpected sums of money.
When an individual works over the years to accumulate wealth, there is a financial growth process at work; he or she learns incrementally how to manage the issues that arise. The problem with a large financial windfall is that many people are out of their element and may not know how to successfully manage those funds. Approximately 70 percent of people who come into sudden wealth lose those funds within several years due to poor financial management.
Estate planning lawyers are typically one of the safest professionals to contact following a financial windfall. Estate planning attorneys do not get paid a percentage of the financial sum, nor are they compensated other than by their standard legal fees. Their one goal is to secure the safety of the financial estate of their client and inform them on how to best plan for their future.
The best way to approach any unexpected wealth is with a long-term strategy. An experienced estate planning attorney can map out a number of financially sound options for protecting that windfall from estate taxes, probate, unscrupulous investors and dependents. An estate planning attorney can also help ensure that gains from the unexpected wealth are sustained in years to come to pass on to heirs. There are a number of estate planning tools which can help secure a large sum of money now and for the future.
New York Contact:
Maria M. Brill
Littman Krooks LLP
New York City Office
655 Third Avenue, 20th Floor
New York, New York 10017
(212) 490-2020 Phone
399 Knollwood Road
White Plains, New York 10603
(914) 684-2100 Phone
300 Westage Business Center Drive, Suite 400
Fishkill, NY 12524
(845) 896-1106 Phone
- Medicaid Asset Transfers: What Are The Rules?
For many families, paying for a loved one’s extended stay in a nursing home would be difficult without the help of Medicaid. However, in order to qualify for the program, a person’s income and assets must fall within certain limits. Federal rules state that to qualify for Medicaid nursing home coverage, a person must have […]
- Seniors & Mental Health: Is it Mental Illness or Aging?
Seniors are more at risk for mental illness than the general population. According to the Centers for Disease Control and Prevention (CDC), about 20 percent of people age 55 and older experience some kind of mental health concern. Not only are more seniors affected by mental illness, nearly one in three affected older adults does […]
- NYC Restores Assistance For Seniors and People with Disabilities
The New York City Department of Finance has agreed to a settlement that will reinstate or recalculate the previously frozen rent rates of widowed seniors who had been surprised by steep rent increases after the death of their spouses. A 2014 rule change by the New York City Department of Finance instituted a new requirement […]