There’s no doubt that plenty of people across the United States are dreaming about the potential for winning a lottery and while millions may be out of your reach, thousands or hundreds of thousands could be accessible depending on the assets passed down to you in terms of beneficiary designations.

Receiving a high volume of assets can present unique challenges, however, if the person who is listed as the beneficiary is not prepared for how to manage it.

One of the most important things to remember if you receive a large lump sum of money, and particularly one worth several hundred thousand dollars, is that your estate could now be responsible for paying the estate tax were you to pass away. Furthermore, being pushed into a different income tax bracket generates unique considerations that should be evaluated by a tax professional.

There is some estate planning that needs to be done extremely quickly after you inherit a large amount of money or win money. Consulting with an experienced estate planning attorney is vital if you find yourself in this situation of needing more information about how to best protect yourself. It can be an exciting opportunity to inherit a lot of assets but you must be prepared for what you will do with the money next in order to decrease the chances of making common mistakes.

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