Ottawa barber, client share $32M lottery win

I'm not sure what you mean here, but since I signed a notarized affidavit gifting shares in any MM ticket I purchase in the next year, the IRS will have verification that it was shares in the one dollar tickets I purchase that was gifted, not a gift given after the win.  In the event of a jackpot win, we'd have to form a legal corporation, partnership or trust to claim it for the group.  I would not claim it personally.  Consequently, I would not be paying income taxes on anyone else's shares.  Nor would I have to pay millions of dollars in gift and generation-skipping taxes on it.  With little wins, I'd just claim the win and pay the income taxes myself, though, rather than go to the expense of hiring an attorney, and the amount would not be large enough to trigger concerns about gift taxes.

And yes, most of the shares are one or two percent.  (From a $32 million jackpot, that would be $320,000 or $640,000 each before taxes.  Nothing to sneeze at!)  But I saved 70% for myself. 

Incidentally, I made the affidavit effective for just one year for a reason - that gives me a periodic chance to change my mind about who gets what.  So if someone dies, I'll take them off the list the next year and give what would have been their share directly to their kids instead of having their share go through their estate.  And if the one relative goes back to heavy drug use, she'll be taken back off the list!  If I should win in that case and she doesn't like that she gets nothing while her brother gets a share, tough!  She'll know why.

A Blind Trust  is a Trust that you put your money in where you don't want anyone to know that you won a large amount of money or a lottery.

You can put the Trust in you and your spouse Initials or a name made up of part of your last name and your wifes maiden name.  A Lawyer will explain if you want a Blind Trust what you can and can't do when you put a name on the Trust. I've seen some with Initials of the family members.

This way relatives, people wanting money won't know you have it or how to reach you to ask for it. You remain anonymous.

I'd just use initials that have nothing to do with my name or anyone's name if I can, they'd would stand for something but only I would probably know since anyone else still wouldn't have a clue even if it reminded them of something that I used them for, they probably don't even remember what they stood for. It would sound like a partnership to anyone who saw the name of the trust.

Damn, 35 relatives... I barely have three people I'd even considering giving a nickle to, let alone 35. I say barely because sometimes my mind changes on a couple of them and I make no promises. No one even knows when or if I play anyway. Unfortunately most of my relatives are the jealous type and will try to take as much as (or as you let them) possible and then tell you to **** off after they're done, they love money too much and would certainly complain if they got less than someone else. Thankfully they won't have to worry about that because they won't even get anything anyway and the three I'd even consider giving money to wouldn't get more than the maximum allowed before the gift tax kicks in. One would get a large portion of their tuition paid for as long as they don't screw up and maintain a good GPA, I don't believe that tuition falls under the gift tax rules. Admittedly the potential deductable for taxes played a role in my deciding that.

HI EVERYONE IM JUST INTRODUCING MYSELF  SINCE IM NEW  MY NAME IS SHORTMOMA1  BYE BYE!

Welcome to Lottery Post Shortmoma1!

Hi! You're welcome! Bye bye,  see you again.

I wouldn't give my relatives cash money.  You can only give 12 grand without tax implications.  I might buy them things like an HDTV but really I would much rather give them gift cards.  For example, my parents are not too many years from a civil service retirement.  Rather than giving them enough money to retire early (and thus lose benefits and money) I would give them enough on gift cards to buy all of their groceries and clothing so they could use their own money to pay off bills and such.  Tax problem solved.

Just keep in mind that tax on gifts is only paid by the giver, not the recipient.  Maybe I misunderstood you, but it's not $12,000 total.  You can give $12,000 to as many people as you want.  So you can write a check for $12,000 to each of your parents without having any effect on their income.  You can also pay for medical expenses, including health insurance premiums and education.  However, you are only allowed a total exemption of $1 million in your lifetime.  You can also give much more than $12,000 to a person in one year if you file the proper forms as long as you don't exceed the lifetime maximum.  There are many ways to get around the whole gift tax problem too.  Buy a home on the beach and hire your parents to be the caretakers. 

Buy a home on the beach and hire your parents to be the caretakers. 

That's an awesome idea!

where can i confirm this? i always thought it was $10K and that they had to pay but your deal is much sweeter!!