The DUFF TORNEY Team

Michael Torney, CFP, J.D., LL.M. 
Moneta Partner

Sudden wealth can lead families to feel overwhelmed by the decisions in front of them. What immediate financial actions do I need to take? Should I help family and friends – and, if so, how much? What legal structures do I need? Which tax strategies are the best for my family? Who do I trust?   

Compounding these hard questions is often a lack of experience in managing wealth. For most people, this is the largest amount of money they have experienced. Like in most areas of life, if you haven’t been there before, it’s hard to know what constitutes a good or bad decision.   

Most people grow wealth over many years. If you become wealthy overnight, you do not receive the luxury of building experience managing that much money over many years. You must catch up quickly or face the prospect of turning riches back into rags. Worse, people around recipients of sudden wealth (often) are not wealthy themselves – so they cannot offer much advice on how to manage your new situation. 

For many who find themselves with sudden wealth, there’s a heavy amount of guilt or shame associated with the funds. If you received funds because of a death in the family, it can be hard to view your newfound wealth as a positive way to enrich your life – your loved one is gone, and no amount of money can repair the hole in your heart. 

If you’re still here, you might be wondering if sudden wealth is a good thing. It is! Wealth gives you options. Options allow freedom. You can make lots of choices about how you spend your time, who you spend your time with, and how you help those closest to you and your community. The options wealth creates may be the best part of wealth. It’s not the money itself – that is a means to an end.   

We’ve all pondered the question: “What would you do if money was no object?” Many of us dream about outrageous possibilities. Most people who receive sudden wealth, however, don’t do what comes to mind when the hypothetical scenario becomes reality. Some do, but that typically destroys their wealth and then they are forced to sell the possessions they coveted so highly.  

Those who hire a good team get challenged on their thinking. What is most important to you? How – and with whom – do you want to spend your time? An advisor who knows your values and goals can design a plan for a fulfilling life that is both rewarding and sustainable for you. The money is just a tool; that tool needs someone who knows how to use it to be most effective. 

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