savings

7 money afflictions from inherited wealth

Uneducated: I have no idea how to manage money
Uneducated: I have no idea how to manage money © JJ Studio/Shutterstock.com

"I was in college when my father told me he was putting aside tax-free money every year that would eventually become my trust fund," says Blouin. "When I was 21, he told me that so-and-so at a trust company was going to send me papers to sign, and I signed them without ever even reading them. What I was doing was signing myself into a very rigid trust."

Later, when Blouin decided to donate her fortune to charity, her trust officer told her she was barred from making any changes. "He told me the trust was irrevocable and I didn't even know what that meant."

Even if it seems daunting to learn about money, "education is a really good investment in yourself," says Collins. Before making decisions, he adds, find a basic financial literacy class. A local community college is a good place to start.

Preisser advises uneducated inheritors to proceed in baby steps by taking control of aspects of their financial situation as they get the hang of it. "Competence leads to confidence," he says, but it doesn't have to come all at once.

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