Individuals can experience a variety of wealth events that lead to a financial windfall, including the sale of a business or real estate, an inheritance, lottery winnings, or a legal settlement. An increase in wealth, especially when unexpected, large, and/or sudden, requires thoughtful planning.
This checklist will help guide your decisions if you experience a sudden wealth event, and covers:
- The nature, timing, and terms of the wealth event
- Cash flow impact
- Liquidity considerations
- Tax planning matters
- Long-term planning opportunities
