A Lottery Winner

I have spoken on lottery winners and their propensity to spend all their winnings in a very short period of time and end up bankrupt. I have had clients who have encountered huge windfalls in a short period of time. One in particular stands out.

When I met this client, she still had just under 1/2 of her winnings which put her ahead of most lottery winners. Further, she had NO debt. Upon winning the lottery, she paid off her home, car and all other debts. She continued to live in her home and drive the same car therefore incurring no need debt. Since she was close to retirement, she quit her job and lived off her winnings for 2 years. She then begin drawing social security and her pension along with a small annuity payment from her investment.

So, you might say what is the issue and beyond getting her estate planning done (will, powers of attorney, etc) what else is needed? Well she executed an Irrevocable Trust which she would now like to change.

How does one change an Irrevocable Trust? The answer tomorrow as we continue with the story of our lottery winner. Leave your comment here or contact us at http://www.ythlaw.com/