Sudden wealth? Three ways an attorney can help make it last.
An attorney can discuss ways to make a windfall last.
A sudden increase in wealth can happen for a number of reasons. Perhaps you finally won the lottery, won an award from a personal injury case or received an inheritance. Whatever the cause of the windfall, it is wise to take a moment to come up with a plan before you begin spending or promising gifts to loved ones.
Make a windfall last
Financial experts with CNBC recommend getting the right team of professionals together to help ensure your newfound wealth lasts. This team should generally include an attorney. An attorney can help utilize a number of legal tools to manage your wealth, helping to better ensure your future plans can become reality. Some examples include:
- Trusts. A trust is a legal tool that helps you to manage assets. Trusts can be designed to meet a number of goals, including reducing tax obligations and sheltering the assets from creditors. These tools can also provide limitations on how the money can be used. This can be useful if you wish to gift some of the money to loved ones, especially those who are young or have made unwise financial decision in the past.
- Powers of attorney. These legal documents are used to put a trusted individual in charge of making health care and financial decisions in the event you become incapacitated. If you do not choose a person, the courts will. This can lead to the appointment of someone you do not wish to have power over these decisions.
- Investing. An attorney can also help you determine the appropriate savings or investment structures for large amounts of money. This can include setting up proper retirement funds. An attorney can also help those who find the prospect of using this extra wealth to provide capital for a business venture appealing. If interested in starting a business, it is wise to have an attorney guide you through the various legal issues that can arise. This generally includes formation, choosing a business entity, startup agreements, putting together contracts and helping to protect you from personal liability if something were to go wrong.
These are just a few of the many benefits an attorney can provide to those who find themselves suddenly accumulating a large amount of wealth. In addition to helping ease the stress that may accompany this financial gain, this skilled legal professional can also help to better ensure you future financial security.