|Posted: June 1, 2010, 3:36 pm - IP Logged|
I think it depends on the person's upbringing and whether they have self control or not.
A person could be a self made millionaire and realize that they had to work to get where they are. Their kids, on the other hand, could be spoiled rotten because they live the "entitled" life. If the self made millionaire had self control and didn't spoil the kids, you might not see this happen.
The same goes for the lottery millionaire, lay low, don't make too many promises, and make sure the kids don't feel entitled to everything. The only problem with the lottery winner and self control is that they may have to say no to alot of long lost friends looking for a handout. One may come across as a snob but because they just received a windfall, they need to excerise self control.
I am not a lottery jackpot winner, yet, and I am not a millionaire. I do have a plan that will hopefully allow me to prolong my winnings for the benefit of the greater good.
Pay all taxes first.
Pay off debt. The money spent on a mortgage could be used to fund other endeavors like donate to a scholarship fund or allow me to scale back work to do volunteer work.
Donate to my selected charities. Set up some type of yrly donation from a CRT
Set up something to give a little something to 8 of my family members....not alot, but a little something that will help them without them expecting it yearly and so that it would trip any gift tax....a little goes a long way.
Unless I can claim anonymously, I may come across as a snob and say "no" but if I want this $ to do good not only for family and charities and myself, I want it to do it for a long time.