Tips for Lottery Winners & Inheritance / Settlement Recipients

The winner of the largest lottery payout in Wisconsin history came forward yesterday.

His announcement has sparked a lot of questions in New Berlin, West Allis and around the state: What would you do with the money? To where would you travel? Would you quit your job?

Really, when anyone - be it a lottery winner, recipient of an inheritance or legal settlement - comes into a sudden windfall of money, what should they do?

BMO Wealth Management suggests the following steps:

1. Seek experts: Find the appropriate team (financial planner, tax advisor, estate planning attorney etc.) who will help you better understand your newfound wealth and how to manage it.
2. Find a place for the money: A financial planner will assess your individual situation and make recommendations based on your needs and future financial goals.
3. Make plans: Talk with your family and communicate the intentions outlined in your wealth plan. Establishing a wealth plan will help you reach your financial goals by guiding you throughout the process with specific tips.
4. Understand tax implications: Knowing the ins and outs of tax filing will help alleviate stress and clarify questions around taxable income and potential reductions.
5. Establish your legacy: Determine what contribution you would like to make to your family and community, and communicate these desires to your family, especially if you want them to continue your legacy.