Won A Lottery Prize? Here Are Some Changes You May Wish To Make To Your Estate Plans
Posted on: 3 October 2018
If you've already hired an attorney who specializes in estate planning to help you write a will and choose powers of attorney, it's important to remember that you can and should make changes in the years ahead. A wide range of life events should compel you to re-evaluate your wishes and revisit your will. If you've had the good fortune of winning the lottery, your life will change in a number of ways. Even if you're eager to travel, buy the things that you've always wanted, and treat your family and friends, you should give some thought to estate planning services. Here are some changes that you might wish to make.
Leave Money To Charity
A lot of people leave money to charity in their wills, but this isn't always practical. If your wealth is limited, you might understandably want to leave it all to your children — even if you're passionate about one or more charities. Having extra money because of a lottery win will give you the confidence to know that what you leave your children will be more than enough to help them, and this may remind you that it's a good time to think about leaving something to a charity, too.
Decide Who Gets What Real Estate
A lot of smart financial people will invest in real estate after they've won the lottery. Even a smaller windfall could give you enough to buy a few investment properties that can generate steady income in the years ahead. In doing so, you'll be dramatically changing your financial picture — and that means that it's important for your will to reflect these changes. For example, if you have four investment properties, you might wish to equally distribute them in your will among your children. Or, because you feel that your kids are getting enough in cash, you might think to leave these properties to nieces or nephews.
Eliminate Your Debts
People often view estate planning as a process by which you decide who gets what in the event of your death, but it's also a time to make plans about your debts. A lot of people pass away with debts, so your estate planning documents should have concessions as to what happens. For example, it's common for your executor to liquidate your assets — including your house — to cover the debts before dividing your money. After a lottery win, you can successfully eliminate your debts. As such, you can stipulate in your will that these past debts are no longer an issue.
Share