A Trust May Have Helped

An individual who lacks the skills necessary to properly manage his or her property should seriously consider placing that property in trust.  This deficiency of management skills could be the result of mental or physical incompetence or a lack of experience in the rigors of making prudent investment decisions.  For example, persons who suddenly obtain large amounts of money, such as performers, professional athletes, lottery winners, or personal injury plaintiffs, tend to deplete these windfalls rapidly because they have never learned how to manage their money wisely.

Here is a real life example:

In 1997, a man won almost $1,000,000 in a lottery.  He immediately quit his job and began spending with reckless abandon,  Soon, he was out of money.

Because he did not want people to know he had spent the money, he decided not to get a job or seek public assistance.  Instead, he became a burglar and committed at least 60 heists before being caught.

See Germany: Jackpot Spent, Winner’s on Trial, N.Y. Times, June 15, 2005, at A11.