Our main office at 370 Main Street, Worcester, MA is temporarily closed due to a recent electrical fire. We are working remotely until power is restored and the building can reopen. If you have questions, you may still call our Worcester office at (508) 792-2800 or contact us via email. Our Westborough, MA office was unaffected by the fire and remains open.
When you leave investment or business assets to your heirs, it’s likely that you are trying to secure both the future of your heirs and your own financial or professional legacy. While you can do a lot to create estate administration that goes along with your wishes, it’s important to remember that nothing about the future is guaranteed.
The heirs of Sam Walton, the founder of Walmart, have learned that lesson over the years. In a most recent report, it was revealed that the heirs have lost a combined $14 billion over this year. Four of the heirs lost close to $6 billion in the first quarter of 2015 alone.
The losses were due to slower-than-projected growth and economic currency fluctuation. Though the retailer is still profitable, those fluctuations ate into some of those profits, causing losses for the heirs. The retailer’s stock also dropped, and per-share earnings came in lower than expected. Sam’s Club, the company’s warehouse division, also posted poor financial performances for the quarter.
What does this mean for Walton’s heirs? It’s not likely any of them are made destitute by this turn of events, but the financial performance of their legacy is something they will need to keep an eye on.
What does this mean for you? While most people aren’t inheriting — or passing on — a national retail chain, many individuals do pass on business or investment assets. Whencreating or administering estates, remember that economic futures are not set in stone. When possible, work with experienced individuals to create estate documents that hold up over time and plans that take into account changing financial and personal climates.
Source: Bloomberg Business, “Sam Walton’s Heirs Lose Almost $6 Billion in One Day,” Marine Strauss and Renee Dudley, May. 20, 2015
370 Main Street, Suite 970, Worcester, MA 01608
45 Lyman Street, Suite 15, Westborough, MA 01581
We strive to take a proactive approach in anticipating and preventing legal disputes. When possible, we resolve conflicts through strategic mediation and arbitration. Our attorneys have the experience and knowledge required to devise successful litigation strategies and imaginative, tax-effective estate plans.