— Kathy Trant attracted worldwide attention a few years ago by quickly spending the $4.7 million she received for the death of her husband who was killed in the September 11, 2001, World Trade Center attack.
I'm not surprised by Trant's story. I have seen the same story played out hundreds of times with larger and smaller sums of money.
Trant called it "blood money." Her spending sprees are a sub-conscious and probably sometimes conscious effort to run through the money.
It is a common feeling amongst widows and widowers. Some people use drugs and alcohol. These people use "blood money."
Many people think that if they get rid of the money their lives will go back to normal.
Often, I see a grief-ridden person influenced by family and friends. I have had a number of widows and widowers remarry quickly and then turn all financial decisions over to the new spouse. Usually, the new spouse and the money run out at about the same time.
Many years ago, I had a client whose wife was killed in a car accident. He received a $500,000 settlement. I invested his money, but every month, the new wife would come to my office wanting to withdraw more. Each time, she was sporting new jewelry, a mink coat and other expensive items. I finally went to their house and told them they were going to run out of money.
They moved their money to another broker.
Within six months, she had spent the entire $500,000 and left town.
Putting money in a structured settlement and giving victims a monthly payment is the only real solution I have.
I started out using structured settlements as a financial planning tool and became a true believer.
It is hard for someone who has gone through hell to think clearly about their money. Someone who has just lost their spouse has no chance.