We all dream of receiving a windfall.
Coming into a lot of money – whether it is through an unexpected windfall; the sale, or partial sale, of a business; inheritance; or divestment of property – dramatically changes people’s lives and not always for the better.
Sudden wealth often comes with an emotional toll – stress, anxiety, guilt, social isolation and confusion.
However, money doesn’t have to be a destructive force. In the majority of cases, passing on an inheritance is a wonderful, loving gesture which gives the benefactor great joy and is greatly appreciated by beneficiaries.
With early engagement, open communication and careful estate planning – preferably with all parties involved, wealth can be smoothly and tax effectively transitioned from one generation to the next.
A professional adviser can also provide ongoing advice around goal setting, portfolio management and asset allocation. This is critical given beneficiaries typically have no experience managing large amounts of money so they’ll need a guide to help them avoid impulsive, destructive behaviour; and ensure they invest their inheritance wisely so it lasts.
Source: Swamped by sudden wealth