Welcome Guest
Log In | Register )
The time is now 11:59 pm
You last visited October 31, 2014, 11:37 pm
All times shown are
Eastern Time (GMT-5:00)

A BLIND TRUST to claim anonymously?

Topic closed. 13 replies. Last post 9 years ago by dvdiva.

Page 1 of 1
PrintE-mailLink
Avatar
New Member

United States
Member #36879
April 8, 2006
4 Posts
Offline
Posted: April 11, 2006, 11:49 am - IP Logged


This inquiry started in the thread "How do you claim a $267,000,000 prize?"
but I'm moving it under a topic more likely to attract the attention of those
specifically interested in this subject.

In that thread I inquired about smart ways to claim your jackpot winnings
that would allow one to preserve anonymity, minimize taxes and maximize
protection... Unfortunately, all replies there were just cheap and unhelpful
comments, really. I was surprised when I later got a wealth of info after
posting the exact same post on google (to read that info search google
under "How do you claim a $267,000,000 prize?"

By the answers I got from google and some research I did later on,
it appears that the best method recurrently used by well-advised lottery
winners to claim their prizes anonymously is to set up a BLIND TRUST.

Here are a few locations where you can read firsthand about those
instances in the news:

http://www.ohiolottery.com/press_releases/2000archive/041800.html
http://www.ohiolottery.com/press_releases/PressReleasesDet.aspx?Id=478
http://www.lotterypost.com/thread/80092/2
http://www.ftimes.com/main.asp?SectionID=1&SubSectionID=1&ArticleID=2...
/winners6.htm

What I find strange, though, is that blind trusts are usually employed
by elected politicians with the purpose of temporarily isolating
themselves from their business interests while in office. I would
assume that a living trust would be the proper vehicle for a lottery
winner desiring anonymity.
And yet all the data I have found so far point to BLIND TRUSTS as the
method exclusively used by winners that want to stay anonymous.

It would be very interesting to know what does happen in a blind trust
in connection with a lottery claim. I am sure that some of the posters
here can supply that sort of info, if willing to be helpful.

Please, spare me the "consult a good lawyer" reply... If I had won, I'd
have done that already. This is just about gathering valuable info in
order to be prepared in the event of a win.

Thanks.

    sfilippo's avatar - skull
    Oklahoma
    United States
    Member #33770
    February 24, 2006
    3146 Posts
    Offline
    Posted: April 11, 2006, 12:51 pm - IP Logged

    A blind trusts do give one anonymity for collecting a sum of money or assets but it also relinquishes their rights of disclosure as to be informed by that person or institution how those assets are being invested. Found that much info so far. Still searching for more...

    Smiley Steve

      savagegoose's avatar - ProfilePho
      adelaide sa
      Australia
      Member #37136
      April 11, 2006
      2797 Posts
      Offline
      Posted: April 11, 2006, 1:58 pm - IP Logged

      NOT MUCH HELP BUT HERE IS A STORY FORM AUST ABOUT AN AUSTRAlian using a blind trust, while on a board. and giving information to the trust or advice about share trading, a big no no.

      yes i been searching about a blindd trust also

       

      http://www.smh.com.au/news/business/its-a-joke-but-its-not-funny/2005/07/22/1121539148326.html

       

      the search continues

       

        Avatar
        New Member

        United States
        Member #36879
        April 8, 2006
        4 Posts
        Offline
        Posted: April 11, 2006, 7:12 pm - IP Logged

        A blind trusts do give one anonymity for collecting a sum of money or assets but it also relinquishes their rights of disclosure as to be informed by that person or institution how those assets are being invested. Found that much info so far. Still searching for more...


        Relinquishing one's rights of disclosure pertinent to one's assets doesn't
        make much sense... and yet these blind trusts are used consistently by
        large jackpot winners, according to data published in the news.

        So there must be more to them that makes employing them worthwhile.

        This is one of the best forums on lotteries on the net. Is it possible that
        no one here knows about this very important topic?

          savagegoose's avatar - ProfilePho
          adelaide sa
          Australia
          Member #37136
          April 11, 2006
          2797 Posts
          Offline
          Posted: April 15, 2006, 6:47 pm - IP Logged

          http://www.pueblo.gsa.gov/cic_text/money/trust-fund/trusfund.htm#info

           

          more info on trusts, seems estate tax is avoided if it is a irevocable living trust.

           

          prob what a blind trust is.

           

            Avatar
            Indiana
            United States
            Member #29196
            December 29, 2005
            280 Posts
            Offline
            Posted: April 17, 2006, 10:46 pm - IP Logged

            This is a great topic and I'm suprised it didn't get more posts.  I've been studying Lotteries for about a year now and here's what I've been able to gather about Blind Trusts:

            First there is not a lot of information on the web available about Blind Trusts.  Many sites will mention the different types of trusts but say nothng about how to set up a Blind Trust.

            From what I can gather Blind Trusts were conceived and set up so that the beneficiary of the trust has absolutely no idea where the money is invested and absolutely no control over how the money is invested.  (Hence the first meaning of the word Blind.)  Control of funds is given to the administrator (Trustee) of the trust who has complete (and presumably arbitrary) control over the investments and is prohibited (by law?) from disclosing that information to the beneficiary.  The administrator (Trustee) has a legal and fiduciary duty to invest the funds in the beneficiary's best interest and is obligated to provide a report that details the balance but not the distribution of the funds.

            A Trust is a public entity and whenever one is formed that information it is a matter of public record.  (Just like the formation of Corporations and Companies.)  The grantor...beneficiary...and Trustee of a Trust are all named and all listed in the legal documents.  What makes a Blind Trust so attractive to Lottery Winners is that when a Blind Trust is formed only the name of the Trustee is listed in pulic records and the beneficiary (and grantor?) is shielded from public view.  Nobody knows who they are.  (Hence the second meaning of the word Blind.)

            So...if a lottery winner forms a Blind Trust to collect his/her winnings they are guranteed anonymity.  They are both the grantor and the beneficiary of the trust but only the trustee's name appears in the public record.  However, by doing this they give up all control over how the money is invested.   Those decisions are made by the trustee...who again has a legal and fiduciary responsibility to invest the money in the beneficiary's best interest.

            From what I can gather some states have specific laws that prohibit lottery winnings from being collected as a Blind Trust.  Other states...most notably Ohio permit it.

            I'd like to know more about Blind Trusts because it seems to me the only sure way (in states that don't allow lottery winners to remain anonymous) to remain anonymous.  But the concept of a Blind Trust does worry me.  I can't imagine winning X million dollars and then giving up complete control of it by turning it over to someone to manage for me.

            NOTE: I'm not a lawyer and the information I presented is based on my reading and my understanding of the information I've come across.  (As I've freely conceded elsewhere...I'm not an expert.)  The best thing to do would be to consult a lawyer in your particular state for precise and accurate information as Trust laws vary from state to state.  But if I ever win you can rest assured that a Blind Trust will absolutely be one of the options I look at.

            Jim 


            Money frees you from doing things you dislike.  Since I dislike doing nearly everything, money is handy.  - Groucho Marx

              Avatar

              United States
              Member #34931
              March 9, 2006
              68 Posts
              Offline
              Posted: April 18, 2006, 11:40 am - IP Logged

              A Nevada Spendthrift Trust might be an option.

                spy153's avatar - maren

                United States
                Member #28409
                December 15, 2005
                1198 Posts
                Offline
                Posted: April 18, 2006, 11:48 am - IP Logged

                well, in virginia (where I play the megamillions) it the state's law that the winner is public knowledge. No blind trusts allowed. what do you do then?

                voir-vous dans mes reves!Cool

                  savagegoose's avatar - ProfilePho
                  adelaide sa
                  Australia
                  Member #37136
                  April 11, 2006
                  2797 Posts
                  Offline
                  Posted: April 18, 2006, 7:55 pm - IP Logged

                  well, in virginia (where I play the megamillions) it the state's law that the winner is public knowledge. No blind trusts allowed. what do you do then?

                  I gather you move to ohio, and setup a blind trust, then have the trust claim  the win from virginia.

                   

                  on the topic of setting up a trust. Say you set up the trust with you as trustee, of a blind trust? and not name the benificiary? ie yourself?

                  you can then claim, you are being paid by an old pal, to administer the trust for their benefit!!

                   

                  sort of a double blind trust heheheHyper 

                    Avatar
                    Indiana
                    United States
                    Member #29196
                    December 29, 2005
                    280 Posts
                    Offline
                    Posted: April 18, 2006, 10:12 pm - IP Logged

                    Nice try goose but from what I gather the laws will not let you do that.  You can set up a trust and name yourself as a beneficiary and trustee...but you can't do it with a Blind Trust. 

                    (I already looked into that.)

                    Jim 


                    Money frees you from doing things you dislike.  Since I dislike doing nearly everything, money is handy.  - Groucho Marx

                      Avatar
                      New Member

                      United States
                      Member #26368
                      November 17, 2005
                      7 Posts
                      Offline
                      Posted: April 20, 2006, 12:46 am - IP Logged

                      I know a little bit about Blind Trusts from reading a book called "The Wall Street Journal's Guide To Personal Finance". It's the same data as stated by Uncle Jim so I won't repeat it again.

                       

                      Now, one can form a Blind Trust and then later on transfer the money from a Blind Trust to your name, another trust, etc... Whatever you want to do.

                      I checked with my state (Illinois) and the winning ticket holder has to take part in a public press conference. I think in only one state (Deleware, but it's only an educated guess based upon past readings) you can claim the prize anonymously.  

                        mylollipop's avatar - Trek STLOGO6.png

                        United States
                        Member #24380
                        October 21, 2005
                        623 Posts
                        Offline
                        Posted: April 27, 2006, 1:36 am - IP Logged

                        Is there a rule somewhere that says you must claim your prize in the state you purchased the ticket in, i.e., a Powerball or MegaMillions ticket?

                          Avatar
                          NY
                          United States
                          Member #23835
                          October 16, 2005
                          2843 Posts
                          Offline
                          Posted: April 27, 2006, 5:06 pm - IP Logged

                          Is there a rule somewhere that says you must claim your prize in the state you purchased the ticket in, i.e., a Powerball or MegaMillions ticket?

                          If you're asking about residency, then the answer is no. If you buy a ticket, win, and then move before claiming it there's nothing to prevent you from claiming it as a resident of the state you moved to. Unless the state you moved from has stupid legislators writing their tax laws you'll still owe taxes to that state, and you should also expect to pay income tax as a resident of your new state, as well.

                          If your question is really as simple as it sounds, the answer is yes. Why on Earth would one state let you claim a prize from another state's lottery? PB and MM pool the money for the jackpot, but each state administers the game independently (subject to the game rules that apply to all states that offer the game). When the recent MM winner was sold in Ohio for example, all of the other MM states transferred their share of the jackpot to Ohio and the  Ohio lottery will pay the winner when they come forward. The lower level prizes have absolutely nothing to do with the other states that offer the game. All ticket proceeds for those prizes stay within the state that sold the winning tickets and that state funds 100% of the prizes won by tickets from that state. PB is played in something like 26 states. If it was really just one game shared by those states jackpot winners would be earning all of the income in their state of residence, but they'd be getting that income from 25 or 26 other states. With the exception of a few states that don't have an income tax or exempt income from their own lotteries jackpot winners would owe income tax in those other states, essentialy doubling their state income tax and the winners would have to file tax returns in each state to which they owed taxes. With each state administering the game on their own funding for the jackpot comes from all of the states but the winnings are paid by the state that sells the winning ticket(s) and any state income tax liability is limited to that state and the state of residence if it's different.

                            dvdiva's avatar - 8ball

                            United States
                            Member #2338
                            September 17, 2003
                            2063 Posts
                            Offline
                            Posted: April 28, 2006, 1:16 am - IP Logged

                            It's up to the states to allow trusts to claim prizes or not. Where I play in the N.W.  BC Canada and Oregon don't allow trusts to claim tickets, Washington does. Blind trusts are formed for specific legal reasons. I'd check with a real lawyer before you do anything. Also rules on trusts vary state to state.