There are a variety of circumstances in which a person in Massachusetts or elsewhere may encounter a sudden and substantial increase in wealth. While this may seem like a dream come true for many, those who experience a significant increase in financial standing may also have a great deal to consider when planning for the future. Sudden increases in wealth could change a person’s estate planning preferences considerably and taking steps to update one’s plans and protect his or her financial future could prove essential.
In some cases, individuals who experience a substantial increase in wealth might not be fully prepared to handle such a financial obligation. Some of the potential risks involved with sudden wealth include a higher potential to make hasty financial decisions. Those who receive such wealth through an inheritance may also encounter feelings of guilt and stress and feel led to distribute a significant portion among family members or donate portions to charity.
Studies also indicate that another possible hazard to the financial future of those who encounter sudden wealth includes a failure to update estate plans. When one receives a sudden windfall, revisiting current plans and policies could prove essential. Reviewing all the available options could also help a person gain perspective on how to handle his or her new financial status, but the process could prove intimidating.
Even those who dream of sudden wealth might still be unprepared to handle what comes next should they suddenly encounter a substantial increase in assets. Those who experience a similar change in circumstance could benefit from reviewing all their available estate planning options with an experienced attorney. An attorney can provide a client in Massachusetts with guidance in making informed decisions and assist in forming a plan with his or her wishes for the future at heart.