TWC’s Myra Salzer had the opportunity to discuss some of the issues inheritors face, and mistakes they often make as a result of receiving sudden wealth. Her Sirius XM Radio interview on the Maggie Linton show aired on November 9, 2015. Myra discussed the following important points:
- Not allowing themselves to mourn the loss of their previous life is the first mistake many inheritors make. Whether the inheritance is due to winning the lottery or being the beneficiary of an established trust, there is a process during which they must let go of their previous life as they knew it. For lottery winners, moving too fast can be the basis for many “riches-to-rags” stories, and they, unlike most inheritors, don’t even have the benefit of familial support.
- Obtaining a knowledgeable advisor right away can help an heir to sort out the complexities of the situation. Heirs have different needs than individuals with wealth accumulation and retirement concerns. Financial planners with inheritance experience are well-suited to assist with the myriad needs related to inheritance, such as inheritance taxes, family office structure, trusts, and business structures. Understanding the rules of the game is paramount for heirs. Only then will they be able to understand their rights and the amount of control they have over their inheritance.
- A good advisor can help them sort out who they want to be, what they need for themselves, what they want their legacy to be, and how to set boundaries and avoid the detrimental non-money mistakes that come with being an inheritor.
We invite you to hear more – listen to Myra’s 25-minute interview with Maggie Linton: