Oh ... this is RICH!This thread is a hoot!!
AlabamaLibrul (962 posts) Mon Feb-14-11 06:51 PM
Original message
On the implications of inheriting several million dollars (or a thinly veiled brag, but seriously)
It's a very long and complex story but apparently I have some folks who we mutually regard as family who are going to be leaving quite a sum behind. It's all very odd because the health of the couple is declining quickly and I knew they were retired and apparently fairly well off, but still lived in her old house from the 60s. I figured they had a little retirement socked away, lived off military benefits and SocSec, and did alright.
Apparently when they're gone, 1) I'm getting about $6m, 2) I'm required to make sure his autistic son gets some money to live on and not be homeless. They have high-priced lawyers and financial advisors apparently ready to swoop in and help the process along for their share.
I have some questions about what this all means, though:
Since I'm officially going to be rich after living off of under $40,000 a year my whole life, do I get access to all the cool loopholes the other rich people use to not have to pay any taxes on the money?
What the hell do you even do with that kind of money if you're used to being broke? I've always wanted to open my own portrait place and have my own little place to work and take photos during the day. Alabama's a right to work state, so I can't run a unionized operation if I stay here. It is bad form to start to pay your help living wages after you get rich overnight?
Does this kind of money make you a different person?
The whole prospect is kind of jarring and scary, especially since these sorts of things always involve people dying.
Horse with no Name (1000+ posts) Mon Feb-14-11 06:54 PM
Response to Original message
2. I would strongly suggest that you find yourself a financial advisor
and set this up because it could go one of two ways: You could end up blowing it all and paying exorbitant taxes OR you could have someone plan the money and tax shelters to last the rest of your life.Now, there are some REALLY smart people on DU--but I would listen and then maybe pick their brains and THEN find an advisor.
Good luck.
librechik (1000+ posts) Mon Feb-14-11 07:05 PM
Response to Reply #5
8. be careful, if they say it's 6M it's probably more like 3 after taxes and fees
and they like to break it up so you don't get it all at once. This happened to us, and the best advice in this thread I've seen so far is the person who said don't spend it. I wish we had taken that advice.
Wonder what that's all about? Frank ... any idea?
AlabamaLibrul (962 posts) Mon Feb-14-11 07:07 PM
Response to Reply #7
12. It is a segregated amount/account
Edited on Mon Feb-14-11 07:07 PM by AlabamaLibrul
He is high-functioning enough that he lives in regular apartments (also receives SSD) but I guess is in some sort of living arrangement where the case worker lives down the street or in the same building or something where they check up on him often. I think "close" with the family is a bit of a stretch these days, 'cause his antics were enough to ruffle me a bit and they've already had heart scares anytime he comes to stay with them for an extended time.
It's a few hundred bucks a month, and just make sure he's not smoking teh marijuanas. I'm not planning on conducting a urinalysis over it as long as the people who keep up with him say he's doing fine.
Huh?? DUmmies haven't mentioned a THING about this wealthy family letting their SON draw SSDI. Not a peep yet.
AlabamaLibrul (962 posts) Mon Feb-14-11 07:14 PM
Response to Reply #11
16. Yes, you're right.
I figure after taxes and all of that I have enough to live very well for the rest of my life, but not like a multimillionaire. Certainly buying a very, very modest house or commercial property (I have seen suitable ones with nice buildings on them for around and under $150,000) and a "new" car. I've been conditioned not to have rich thoughts, I guess. I am generally not a fan of paying people to do things for me but clearly this one is above my head.
HUH?? I thought anything over $2 mil made you a multimillionaire? Guess I'm stupid like that.
Bluenorthwest (1000+ posts) Mon Feb-14-11 07:20 PM
Response to Reply #16
19. Your new role in life is to pay people to do things! That's the
good part. Sounds like you have a good grip on things. Moderation and all. Also, enjoy the **** out of the comfy chair aspect of it. You are very fortunate indeed.
I thought DU hated the rich because they didn't do anything for their money. At least AlabamaLibrul ..... hmmm never mind.
MadHound (1000+ posts) Mon Feb-14-11 07:11 PM
Response to Original message
14. A few pieces of advice,
First, don't quit your day job until you get your financial situation in order.
Second, think about putting everything, the money, your house and possessions in a trust, with you as the sole trustee.
Third, if you take six million, invest it in tax free muni bonds, which have around a five percent return rate, you will get somewhere around three hundred thousand a year for the rest of your life without touching the principle. You can have a comfortable life with that money and still give plenty away to charities of your choice.
Fourth, you are going to get bombarded by people and companies who will try to separate you from your money. Long lost relatives, friends from decades ago, companies that want venture capital, etc. etc. Stay strong, say no.
Fifth, Congratulations, enjoy.
Good advice! Wait .... what about paying your fair share?
15. Good advice in this thread, much to my shock. Mine: Learn to say no.
Also, remember the fact that you can't save everyone. Or, really, anyone.
What the hell?? Is this DU??
Mike 03 (1000+ posts) Mon Feb-14-11 07:32 PM
Response to Original message
23. Number one, Just keep calm and get a ****ing grip on yourself
I have been in your shoes, not because of inheritance but because of investments that paid off.Don't make a fool of yourself by posting posts like you just posted.
Sit down and think.
And then repost, something sensible requesting intelligent advice.
Good luck. It is not as easy as you think, falling into a ton of money. Look at your post. That was really dumb.
The DU taught me that what this DUmmie claims to have done is not possible.
And finally. Thank GOD for this woman .... the smartest person on DU chimes in to save the day;
nadinbrzezinski (1000+ posts) Mon Feb-14-11 07:46 PM
Response to Original message
30. Get yourself a finantial advisor NOW
also the best way to dea with their son is a trust... have a lawyer help you with that.
Oh and it is easy to piss off six million if you are not careful.
There's more at the link. This thread is a HOOT!
KC
