Prepare clients for a big inheritance

“I’m 25 and I’ve just inherited $5 million. How should this influence my life plan?” asks an anonymous poster on Internet forum Quora. Think about passing on the advice the poster received to your clients.

Business Insider reports that one wise commenter advised the poster to be realistic about how far his or her dollars would stretch over his or her lifetime.

Read: What to do with unexpected assets

As well, the commenter suggests the young inheritor:

• work through how different amounts of money will change his or her lifestyle;
• keep a job to avoid boredom; and
• be generous to friends, family and charities.

Read more here.

For more inheritance tips, read:

Encourage snowbirds to plan their estates

Don’t make estate administration mistakes

When a client might cut off an adult child

Discuss final expenses before it’s too late

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.