People Who Acquire Sudden Wealth Are More Susceptible To Fraud

The most recent Estate Analyst newsletter, highlights the different hurdles of planning for new stars, and athletes. More often than not new superstars can make the worst choices for themselves by spending too much, exposing themselves to court claims, and trusting people who are only interested in their money. Both new and old celebrities would benefit from talking to an estate planner and financial advisor.

Estate planning experts say a celebrity that has come to sudden wealth is more vulnerable to fraud by their followers or advisors because of peer pressure and misplaced trust. The experts contrast new celebrities with self-made entrepreneurs who gradually acquire wealth and are usually fiscally conservative and tend to be more disciplined about planning for the future. The newsletter distinguishes estate planning strategies suggesting to athletes it is a good idea to get life insurance. Estate planners remind everyone that even though it is easy to spend money, it is crucial to set aside some funds just in case.

 See Robert L. Moshman, Superstar Estates Fleeting Fame, Enduring Security, The Estate Analyst (May 2013).