Many of us were dreaming of winning the €175 million Euro Millions jackpot and someone in Ireland has realised that dream. Fantastic for them, but what do they do next?
It takes time for someone to comprehend and understand what it means to suddenly acquire such huge wealth. For some, it can be overwhelming and seeking advice from financial professionals and, perhaps, also psychological experts as soon as possible really helps.
Simple things like just giving money away can become an absolute minefield, both from an emotional perspective as well as the tax implications. Remember the most you can give away to immediate family members (son or daughter) in 2019 is €320,000. For all other family members, the maximum before tax is just €32,500 and for everyone else just €16,250. Any amount above these levels attracts tax at 33%!
So, whilst the lotto cash is paid tax free as soon as you start to distribute that cash it can very soon be subject to large amounts of tax!
As Financial Planners, we regularly help individuals and families not only to manage their money, but also to pass wealth to intended recipients in the most tax efficient way possible, and at the right time, even if that is after they have passed on.
If you or someone you know would benefit from similar help, please contact us on 1890 428 343 or email@example.com