The price of luck: how people who received a huge inheritance quickly lost it
“A fool's money won't last long” is a phrase that the heirs of huge fortunes hear too often and often grasp its meaning from their own experience. This happens both with those brought up in luxury, and with those trying to make ends meet. After all, when people suddenly receive huge amounts of money, sometimes common sense leaves them, and the need to indulge their desires exceeds the desire for financial stability. Edition GoBankingRates made a selection of heirs who squandered their fortune.
In the late 1970s, Clarissa Dixon-Wright, now known for her British TV show Two Fat Ladies, inherited about 2,8 million British pounds after the death of her mother. Then she already held a highly paid lawyer position in London.
How the heiress lost everything by the early 1980s
Although she had enough money left to live a comfortable life, the death of her mother was a severe emotional blow for her. Clarissa was not only next to her mother, but also with her father. He died shortly after the death of his mother. All this provoked a deep depression, which the orphaned heiress tried to correct with the help of alcohol. Not only alcohol swallowed her inheritance, but also generous expenses. Clarissa began to hold various parties, gamble, buy luxury yachts, planes and hotels. By 1982, the rave lifestyle prevented her from practicing law again, and when the money ran out, she became homeless.
The famous actress and one of the heirs to Aaron Spelling’s fortune of $ 600 million due to her lifestyle forced her father to limit the inheritance to only $ 800 because of the fear that she would spend this money for several years. Most of his fortune was left to his wife, Candy.
How the actress got into debt
Unfortunately, the reduction in inheritance did not affect Spelling expenses. Although she, in the opinion of most people, inherited an impressive amount, she had a penchant for designer clothes and jewelry, sometimes she could spend almost $ 60 on purchases in one day. Due to growing debt due to expenses, she was billed with a tax bill in excess of $ 000 million, which led to a lawsuit.
Graham Roos was only 26 years old when he inherited $ 750 after the death of his cousin. Although he knew that he would receive the inheritance, his size shocked the heir, because the amount was much larger than expected.
How Graham got into debt in a few short years
When the check got into Roos's bank account, he immediately quit his job and began to spend the inheritance. Money went quickly, but he did not pay attention to his dwindling account. Luxurious relaxation and expensive works of art accounted for most of Roos's expenses, but it was his addiction to parties and drugs that made him a pauper. When the bank account was empty, Graham accumulated debts and had to return to work, so as not to be left homeless.
Maureen O'Conner was respected in the political arena. She fought for a seat on the San Diego City Council when she met Robert O. Peterson and married him. Peterson was the founder of Jack in the Box fast food restaurants, so after his death, his wife inherited more than $ 50 million.
How Maureen ruined everything
The diagnosis of a brain tumor, the grief of the loss of her husband and several of her close friends led to her developing a gambling addiction. It was gambling that helped her win more than $ 1 billion for almost a decade. But her losses exceeded revenues, leaving her with less than she had at first. In addition, Maureen was convicted of money laundering and the use of funds from her husband’s nonprofit organization to cover gambling debts.
"Poor little rich girl," as Barbara Hutton was called, was the heir to Woolworth's fortune. On her 21st birthday in the early 1930s, she inherited $ 50 million, which, adjusted for inflation, would have surpassed $ 900 million today, a staggering amount at all times. She inherited her inheritance from the death of her mother, who committed suicide in 1933.
How Barbara was on the verge of bankruptcy
Although the young Hatton was a wealthy girl, she grew up completely unsure of herself. Her father was practically absent throughout her life, and her mother was struggling with depression. Hutton's weakness lay in shopping, especially for her loved ones, whom she generously presented with expensive gifts - jewelry, fashions, and even art objects that once belonged to Marie Antoinette. Large expenditures were not the only reason for its impoverishment. She was married seven times, so every time her fortune diminished due to divorce proceedings. At the time of her death in 1979 (she was 66 years old) she had almost nothing.
Alex Lazarev differs from traditional heirs and heirs in that she did not grow up in a wealthy family. After her father abandoned them with her mother when she was 3 years old, she grew up in a modest suburban home in Toronto under the supervision of her mother. Alex became independent, she bought clothes for the money she earned. But she soon inherited more than $ 1 million after her mother committed suicide.
How quickly wealth disappeared
Alex's mother was a professional violinist who made good money and spent almost nothing. Only after her death did Alex find several bank accounts totaling more than $ 1 million. Alex wanted to quickly change her impoverished lifestyle and decided to start from the very top - she moved to a luxurious penthouse at an exorbitant price. Although she spent a lot on clothing and limousine rides, much of her inheritance went into business ideas that never really worked out. Soon she lost everything and returned to where she started.
Seventh Marquis of Bristol, John Hervey
John Hervey, a member of the English royal family, inherited his fortune on his 21st birthday in the late 1970s. By current standards, an inheritance of $ 6 million is about $ 65 million. In addition, his fortune has increased thanks to investments in real estate and oil.
How John died penniless
Hervey may have been able to invest, but he decided to lead a rich lifestyle, the cost of which quickly exceeded his huge fortune. He spent money on yachts and sports cars, but these costs were nothing compared to uncontrolled drug addiction. For 10 years, more than $ 9 million of his fortune was spent on cocaine and heroin. Costs began to rise as drug addiction pushed for many crimes, resulting in deportation. By the early 1990s, he was penniless and soon discovered a polished deficiency related to drug use.
Huntington Hartford II
Huntington Hartford II grew in wealth. From a young age, he was spoiled by servants who were paid for the service, he was given gifts every time he desired. Huntington inherited his fortune of $ 90 million at 11 years after the death of his father. He also became the heir to the vast A&P empire, which included grocery chain stores across the country.
How Huntington has changed the mansion for rental housing
Hartford was extremely well educated, but not very versed in managing his finances. He invested his inheritance in a number of unsuccessful enterprises and projects, including a modeling agency, which turned into a cash hole, and a deal with real estate in the Bahamas, as a result of which the loss exceeded $ 30 million. But the losses did not end with investments. He married four times and got divorced, and each subsequent divorce cost him more than the previous one. By 1992, he was forced to file for bankruptcy and settled in a worn-out, rented house in Brooklyn.
On the subject: In Texas, a grumpy customer left a legacy to his waitress
Allison Cintins was only 22 years old when her stepfather died and left a legacy of $ 66. Her father took care of his daughter’s future and left instructions: it would be wise to put money on a deposit with a high interest rate in the hope that one day she could use them to buy your own home.
How her expenses lost her after only 2 years
Although her father gave her reasonable financial advice and a reliable plan for the future, Allison had different views on the resulting fortune. Feeling that buying a house is still a long way off and she has a lot of time to make savings, Allison spent the money, rather than putting it in the bank. Yes, she agreed to deposit the first $ 61 into her account, but the $ 000 dollars she kept lasted only one month. Soon, Allison discovered that she was using her savings to buy clothes and other whims. Two years later, she inherited from the inheritance received less than a couple of hundred dollars.
Clint Murchison Jr.
Clint Murchison Jr., the son of oil tycoon, received $ 200 million after his father died in the late 1960s. His inheritance today amounts to more than $ 400 million. Murchison Jr. was brought up in a rich environment, he was accustomed to luxury, so he quickly spent his fortune.
How Clint ended up among the largest bankrupt in the USA
Unlike his father, who was a serious investor, Murchison Jr. decided to have fun with his inheritance: he invested in dubious projects, and not in reasonable investments. His first major investment was the founding of the Dallas Cowboys football team in 1960. Clint not only invested millions in a football team, but also invested them in a number of other enterprises, including restaurants, oil, real estate and even a radio station. Many of his investments failed, and the collapse of oil and real estate in the 1980s led him to serious debts. By 1985, he had no choice but to declare bankruptcy. Clint Murchison Jr. died only two years after the sale of all his assets.
While Jacob Wade was not a celebrity or heir to a family fortune, he was no stranger to how a sudden, unexpected condition can come and go in the blink of an eye. Wade inherited thousands of dollars in two accidents - his father died of cancer after being misdiagnosed in the hospital, and he was in a car accident. Insurance payments after the accident began simultaneously with the payment of the annuity due to the death of the father. Wade spent $ 100 in less than three years.
How he went bankrupt
The money was gone in just three short years due to serious but ill-conceived and extravagant purchases. From college courses that Wade didn’t attend, to a custom two-seater truck. The money left as quickly as it came. Wade calculates that he ended up spending more than $ 35 on entertainment, $ 000 on university loans for an outstanding degree, and $ 16 in living expenses when he decided not to work for a year. By the end of the third year, he found himself struggling to get out of debt.
Euan McAndrew was a middle-income worker who suddenly became the heir to six figures - just over $ 128 after taxes.
How Euan ruined everything
McAndrew did not lose time, he spent his inheritance on cars, fashionable clothes and drugs. It was drug addiction that quickly nullified his bank account and forced him to look for ways to replenish income and satisfy his addiction. To achieve this, he went into the cocaine trade. But even the money received from trade also quickly disappeared. He was arrested and sentenced to 10 months in prison.
Luck can quickly disappear, and for some people, generous expenses, poor investments and an extravagant lifestyle are fraught with the loss of money, which others can only dream of.
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