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Setting a trust for anonymity: how does it work?

Topic closed. 33 replies. Last post 7 years ago by rundown99.

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JRCa's avatar - george
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Posted: April 12, 2007, 9:47 pm - IP Logged

No, I haven't won a large jackpot yet... I'm just very curious about the way it works and, obviously, I am not going to hire a lawyer just to find out. 

So, does anyone here know about it...  what kind of trust and how one goes about claiming a large prize through such a device, the risks involved, etc.  Please don't reply, "after you have won, hire a good lawyer and a good accountant and they'll show you everything..." 

How many of you have researched it just out of mere curiosity or in order to be prepared in advance, just in case? :)

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    California
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    Posted: April 13, 2007, 12:30 pm - IP Logged

    JRCa...as your state of residence shows California, the following appiles to claiming a jackpot in the Golden State.

    It does not appear possible to claim a jackpot without having your name released.  According to the regulations for the California Lottery a winner's name is public record.  As far as claiming in a trust, the Director of the California Lottery can require that a natural person be indentified in order to be paid the jackpot.

    This information is on the California Lottery web site.  If you want to review go to Media, Publications, Lottery Regulations.  The place where the name of a jackpot winner being public record is in Section 14 (page 23) PUBLIC DISCLOSURE OF WINNER'S NAME.  The place where the natural person regulation is noted is on the top of page 15 under Claimant Status.

    Even with the above information in my opinion it still would be worth hiring a lawyer to research if there is any wiggle room in having your name released to the public.  

      Todd's avatar - Cylon 2.gif
      Chief Bottle Washer
      New Jersey
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      Posted: April 13, 2007, 1:29 pm - IP Logged

      No, I haven't won a large jackpot yet... I'm just very curious about the way it works and, obviously, I am not going to hire a lawyer just to find out. 

      So, does anyone here know about it...  what kind of trust and how one goes about claiming a large prize through such a device, the risks involved, etc.  Please don't reply, "after you have won, hire a good lawyer and a good accountant and they'll show you everything..." 

      How many of you have researched it just out of mere curiosity or in order to be prepared in advance, just in case? :)

      The way it works, and it may even work for states that require the disclosure of the winner's name, is that you create a trust, and then the trust claims the jackpot.

      Trusts are legal entities that are formed to carry out specific functions.

      I'd recommend this link to you:

      http://en.wikipedia.org/wiki/Trust_law

       

      Check the State Lottery Report Card
      What grade did your lottery earn?

       

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        JRCa's avatar - george
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        Posted: April 13, 2007, 4:15 pm - IP Logged

        JRCa...as your state of residence shows California, the following appiles to claiming a jackpot in the Golden State.

        It does not appear possible to claim a jackpot without having your name released.  According to the regulations for the California Lottery a winner's name is public record.  As far as claiming in a trust, the Director of the California Lottery can require that a natural person be indentified in order to be paid the jackpot.

        This information is on the California Lottery web site.  If you want to review go to Media, Publications, Lottery Regulations.  The place where the name of a jackpot winner being public record is in Section 14 (page 23) PUBLIC DISCLOSURE OF WINNER'S NAME.  The place where the natural person regulation is noted is on the top of page 15 under Claimant Status.

        Even with the above information in my opinion it still would be worth hiring a lawyer to research if there is any wiggle room in having your name released to the public.  

        Thank you so much for the very specific information you have provided .

        I think I remember reading something in the news last year about a California resident claiming a prize anonymously through a trust... As I wrote earlier, it would not make much sense for me to pay a professional at this point to find out whether this is possible or not, just to satisfy my curiosity. It would be nice if someone with specific knowledge about this matter, that is, regarding the possibility of a large lottery jackpot being claimed anonymously in the state of California in spite of the limiting state regulations, would step forward and share it here for the benefit of the Californian members of this forum.

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          Posted: April 13, 2007, 4:39 pm - IP Logged

          JRCa...here is what I have observed having followed the California Lottery fairly closely for the past few years.

          Last year, July of 2006 to be specific, there was a person who claimed a Super Lotto Plus jackpot of $110 million, but refused to attend a press conference.  His name was made public.  

          Every other California jackpot winner, both Mega Millions and Super Lotto Plus, has to the best of my knowledge been identified.  I am not aware of a California Lottery jackpot winner claiming a jackpot as anonymous.  In looking at the biggest California jackpot winners, those who probably would like to remain anonymous the most, they all have been identifired.

          The regulations are pretty straight forward as far as having to be identified.  Believe me, I wish it were not this way.  Should I be fortunate enough to win a jackpot, I would take the step to hire a lawyer to see if the possibilty exsits for staying anonymous in California.  

          If there is someone on Lottery Post that is aware of a California person winning a jackpot and staying anonymous, please provide the details.  This would be great information to have and maybe even save me some money from the jackpot that hopefully is coming my way! 

            JRCa's avatar - george
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            Posted: April 13, 2007, 4:56 pm - IP Logged

            The way it works, and it may even work for states that require the disclosure of the winner's name, is that you create a trust, and then the trust claims the jackpot.

            Trusts are legal entities that are formed to carry out specific functions.

            I'd recommend this link to you:

            http://en.wikipedia.org/wiki/Trust_law

            Sure, but what I meant to ask is, how do you go about the specifics? For instance, what type of trust is preferable? (there are several types, as you likely know...), do you just hand you winning ticket to the lawyer (or trustee)? you know, we are talking about entrusting a person you just met with a document worth several million dollars... Exactly this sort of practical questions...

            It would be very interesting to hear from those who have invested some time researching this matter and prepared in advance for the possibility of winning (as they say, "fate favors the prepared mind"), the practical steps they would take, how they would go about it...

            I.E. "first I would make photocopies of the signed ticket" (but do you sign it OR is the trustee supposed to sign it? do you see what I mean?), "look for a lawyer" (or the trustee services of a reputable trust firm?)... do you just hand the winning ticket out to your trust officer or have him sign a notarized statement that he was entrusted it by you... How do you go about the liability involved in case he later claims to have lost the ticket? Again, we are talking about large sums of money here... and the only proof you have linking you to it is that little piece of printed paper...

            And so forth, and so on...

            You know, often the winner of a large jackpot is your average Jane/Joe... not someone technically prepared to handle this type of situation from a legal standpoint. Many of us fantasize about winning big some day... but how many of us are prepared to handle such an event, should it happen? There are plenty of stories in the news about people winning a large jackpot only to immediately find themselves going through enormous amounts of stress and psychological pain and confusion just because the event caught them unprepared and they do not know whom to trust, how to go about it... Suddenly, one becomes paranoid... suspicious even of his closest ones... and with good reason, IMO.

            Again, it would be nice if we were to visualize it was finally us hitting a large jackpot... OK, we are now holding the ticket in our hands, worth tens of million dollars... possibly even hundreds...  We do not know whom to trust, where to turn, and we wish we had given it some thought before and prepared for it in advance... What do we do now, how do we go about it, specifically?

            This is the specific type of question I am asking here... and, in my opinion, this is the most precious form of advice a forum such as this one can potentially provide its members... After all, isn't this what we are all dreaming about, hitting the big one some day? Hyper

              tnlotto1's avatar - logo
              nashville
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              Posted: April 13, 2007, 5:05 pm - IP Logged

              this is a good topic because i was curious about if trusts are insured like bank accounts and if you can set one up online without having to hire a lawyer so todds link answered most of my questions because i know most bank accounts only are insured by FDIC for up to 100K so i know alot of people have to have other places to put large amounts of money like lottery jackpots and make sure they are insured for most of the value just in case there is id theft or some other theft of some of the money...

                Todd's avatar - Cylon 2.gif
                Chief Bottle Washer
                New Jersey
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                Posted: April 13, 2007, 5:38 pm - IP Logged

                Sure, but what I meant to ask is, how do you go about the specifics? For instance, what type of trust is preferable? (there are several types, as you likely know...), do you just hand you winning ticket to the lawyer (or trustee)? you know, we are talking about entrusting a person you just met with a document worth several million dollars... Exactly this sort of practical questions...

                It would be very interesting to hear from those who have invested some time researching this matter and prepared in advance for the possibility of winning (as they say, "fate favors the prepared mind"), the practical steps they would take, how they would go about it...

                I.E. "first I would make photocopies of the signed ticket" (but do you sign it OR is the trustee supposed to sign it? do you see what I mean?), "look for a lawyer" (or the trustee services of a reputable trust firm?)... do you just hand the winning ticket out to your trust officer or have him sign a notarized statement that he was entrusted it by you... How do you go about the liability involved in case he later claims to have lost the ticket? Again, we are talking about large sums of money here... and the only proof you have linking you to it is that little piece of printed paper...

                And so forth, and so on...

                You know, often the winner of a large jackpot is your average Jane/Joe... not someone technically prepared to handle this type of situation from a legal standpoint. Many of us fantasize about winning big some day... but how many of us are prepared to handle such an event, should it happen? There are plenty of stories in the news about people winning a large jackpot only to immediately find themselves going through enormous amounts of stress and psychological pain and confusion just because the event caught them unprepared and they do not know whom to trust, how to go about it... Suddenly, one becomes paranoid... suspicious even of his closest ones... and with good reason, IMO.

                Again, it would be nice if we were to visualize it was finally us hitting a large jackpot... OK, we are now holding the ticket in our hands, worth tens of million dollars... possibly even hundreds...  We do not know whom to trust, where to turn, and we wish we had given it some thought before and prepared for it in advance... What do we do now, how do we go about it, specifically?

                This is the specific type of question I am asking here... and, in my opinion, this is the most precious form of advice a forum such as this one can potentially provide its members... After all, isn't this what we are all dreaming about, hitting the big one some day? Hyper

                You ask, "what I meant to ask is, how do you go about the specifics?"

                Nobody can answer all the detailed questions, other than a qualified lawyer.  The link I gave you answers all the "nuts and bolts" questions about how trusts work, SO YOU KNOW BASICALLY HOW IT WILL WORK.

                When it comes time to DOING IT, you go out and hire yourself a VERY good tax attorney.  All good tax attorneys will be quite adept at setting up trusts.  That's what they do.

                When I say get a "VERY good" one, I mean DON'T CHEAP OUT.  You'll need to get an EXPENSIVE one.  If they cost a lot, that means they are good enough that people are willing to pay a lot.

                Don't get a lawyer who costs $150-$200 per hour.  Get one who costs $500-$600 per hour.

                Hire him/her before doing anything else.

                Now go and dream big.

                 

                Check the State Lottery Report Card
                What grade did your lottery earn?

                 

                Sign the Petition for True Lottery Drawings
                Help eliminate computerized drawings!

                  LuckyLilly's avatar - savy chick.png

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                  Posted: April 13, 2007, 5:55 pm - IP Logged

                  Have you tried asking on a site like these?

                  http://www.lawguru.com/index.php 

                  http://www.chat.lawinfo.com 

                    OldSchoolPa's avatar - Lottery-057.jpg
                    Gurnee, Illinois
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                    Posted: April 13, 2007, 6:01 pm - IP Logged

                    JRCa...here is what I have observed having followed the California Lottery fairly closely for the past few years.

                    Last year, July of 2006 to be specific, there was a person who claimed a Super Lotto Plus jackpot of $110 million, but refused to attend a press conference.  His name was made public.  

                    Every other California jackpot winner, both Mega Millions and Super Lotto Plus, has to the best of my knowledge been identified.  I am not aware of a California Lottery jackpot winner claiming a jackpot as anonymous.  In looking at the biggest California jackpot winners, those who probably would like to remain anonymous the most, they all have been identifired.

                    The regulations are pretty straight forward as far as having to be identified.  Believe me, I wish it were not this way.  Should I be fortunate enough to win a jackpot, I would take the step to hire a lawyer to see if the possibilty exsits for staying anonymous in California.  

                    If there is someone on Lottery Post that is aware of a California person winning a jackpot and staying anonymous, please provide the details.  This would be great information to have and maybe even save me some money from the jackpot that hopefully is coming my way! 

                    I am actually glad that California requires the disclosure of all lottery winners (Kansas and Maryland to name a few need to get a clue).  Besides, California is home to Hollywood and the stars, so even lottery winners need their 15 minutes of fame.  BTW everyone knows how much loot all the actors, actresses, and sports stars are raking in...I don't see that  in and of itself causing problems for them...besides I have never heard of the paparazzi chasing any lottery winners or stalking them...so relax and hope that I win...I will scream to the world that I have won!

                    Get MONEY!!! Winning a JACKPOT lottery is all the HOPE and CHANGE I desire!!!  NOW give me MONEY!US Flag

                    The guy who won the presidency in 2008 really won the lottery...he is now millions richer, travels in first class style, and even has a staff that would be the envy of the richest Powerball winner (she has a staff of 2). Every night he goes to sleep, he probably plays the close of Dave Chappelle's Show: I'm rich beyatch!

                      hypersoniq's avatar - xls
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                      Posted: April 13, 2007, 9:39 pm - IP Logged

                      In what research I have done, the best vehicle seems to be a "personal property trust". If you feel the need to be prepared, you need the document and to have it notarized.

                      Books on the subject might be helpful at this stage, just to know what you are looking at, you don't need a winning ticket to form a trust...

                      What I have seen done in the past... trust formed to claim the ticket, an attorney is hired to cash it in... named in the trust as a "Trustee". The lawyer will provide the lottery with the s.s.n. of the winner (for tax purposes) and the bank account number for a wire transfer. <<< that's the part that makes me nervous!

                      I would rather miss out on millions because I didn't have the winning ticket than to be ripped off thinking I was set for life.

                      I have a few plans...

                      A. play it off for the press as I am someone who is not a lawyer that was asked to claim the ticket for the "trust", then use the fame to advertise the service... who knows, a "gift" of 10K a pop might be a good side job... whip up a website before claiming.

                      B. Win, claim, then sue for endangerment of the family and reckless behavior on the part of the lottery and the press. (you still become a media mark, but at least you can possibly help the next winner). LOG the experience, every phone call, every stranger approaching, every solicitation,and every dollar spent to secure the family from what could have been avoided if the state of choice was more like Delaware. (they allow anonymous claims... you still provide s.s.n. and bank info, but nobody else needs to know)

                      C. show up (if a mandatory conference) with a "Guns Don't kill people, I DO! " T-shirt and when asked what you will do with the money, say "Finish off that sniper rifle collection" ;-)

                      seriously tho, fire up google

                      search terms...

                      "Personal Property Trust" *** Best Info

                      "Revocable Living Trust"

                      Good Luck!

                      Playing more than one ticket per game is betting against yourself.

                        MegaWinner's avatar - Lottery-029.jpg
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                        Posted: April 13, 2007, 9:56 pm - IP Logged

                        In what research I have done, the best vehicle seems to be a "personal property trust". If you feel the need to be prepared, you need the document and to have it notarized.

                        Books on the subject might be helpful at this stage, just to know what you are looking at, you don't need a winning ticket to form a trust...

                        What I have seen done in the past... trust formed to claim the ticket, an attorney is hired to cash it in... named in the trust as a "Trustee". The lawyer will provide the lottery with the s.s.n. of the winner (for tax purposes) and the bank account number for a wire transfer. <<< that's the part that makes me nervous!

                        I would rather miss out on millions because I didn't have the winning ticket than to be ripped off thinking I was set for life.

                        I have a few plans...

                        A. play it off for the press as I am someone who is not a lawyer that was asked to claim the ticket for the "trust", then use the fame to advertise the service... who knows, a "gift" of 10K a pop might be a good side job... whip up a website before claiming.

                        B. Win, claim, then sue for endangerment of the family and reckless behavior on the part of the lottery and the press. (you still become a media mark, but at least you can possibly help the next winner). LOG the experience, every phone call, every stranger approaching, every solicitation,and every dollar spent to secure the family from what could have been avoided if the state of choice was more like Delaware. (they allow anonymous claims... you still provide s.s.n. and bank info, but nobody else needs to know)

                        C. show up (if a mandatory conference) with a "Guns Don't kill people, I DO! " T-shirt and when asked what you will do with the money, say "Finish off that sniper rifle collection" ;-)

                        seriously tho, fire up google

                        search terms...

                        "Personal Property Trust" *** Best Info

                        "Revocable Living Trust"

                        Good Luck!

                        WOW LMAO!!!  Good ones!!!

                        Sun Smiley I got my fingers crossed ready to win!!! Sun Smiley

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                          Posted: April 14, 2007, 11:57 am - IP Logged

                          Here is what I know for Michigan residents regarding this subject. This is a response to my email questions on blind trusts for Mi residents. This information was emailed to me from the Michigan Lottery. "The rules of Mega Millions state that any jackpot winner must release - their name and city of orgin . I don't know anything about a blind trust, that would be a question for an attorney. But a  check can only be made out to either a winner or a Lottery Club". If you chose to claim your ticket as a club, only the club name and city will be released. The club must select a representative, who will sign the back of the winning ticket, making it his or her propert, that person must provide their drivers licence and social security card in order to claim the ticket. All other members of the club must provide their name, address, and ss number to the representative so they may fill out a form to show how much money each person receives. " I quess they leave the door open with the comment about seeing an attaorney based on ignorance of the subject, but I have yet to see anybody make it work. It sounds like a club could be the blind trust for Mi. residents. You need at least 2 people and you can then get a ss number for the club. Who could you trust????? At least for Mi. residents it doesn't seem worth the risk to get other people involved to save the notoriety of having your name released. If you think about it after the first few weeks of press must lottery winners fade away from the news. I had one thought of temporally moving to another city just to get a new drivers licences to use as the form of id. That city would be listed not my true place. Does anyone see pitfalls with that scenario?????????? Further tibits of info from Mi. Lottery. Prize check is drawn from Bank One. Google cdars. Using one bank you can deposit up to 30million with FULL FDIC insurance. It's a great place to park you money. Also check tax free, both Fed and State, accounts such as Fidelity for temporally parking places. No one really has to have a lawyer!

                            OldSchoolPa's avatar - Lottery-057.jpg
                            Gurnee, Illinois
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                            Posted: April 14, 2007, 3:05 pm - IP Logged

                            Here is what I know for Michigan residents regarding this subject. This is a response to my email questions on blind trusts for Mi residents. This information was emailed to me from the Michigan Lottery. "The rules of Mega Millions state that any jackpot winner must release - their name and city of orgin . I don't know anything about a blind trust, that would be a question for an attorney. But a  check can only be made out to either a winner or a Lottery Club". If you chose to claim your ticket as a club, only the club name and city will be released. The club must select a representative, who will sign the back of the winning ticket, making it his or her propert, that person must provide their drivers licence and social security card in order to claim the ticket. All other members of the club must provide their name, address, and ss number to the representative so they may fill out a form to show how much money each person receives. " I quess they leave the door open with the comment about seeing an attaorney based on ignorance of the subject, but I have yet to see anybody make it work. It sounds like a club could be the blind trust for Mi. residents. You need at least 2 people and you can then get a ss number for the club. Who could you trust????? At least for Mi. residents it doesn't seem worth the risk to get other people involved to save the notoriety of having your name released. If you think about it after the first few weeks of press must lottery winners fade away from the news. I had one thought of temporally moving to another city just to get a new drivers licences to use as the form of id. That city would be listed not my true place. Does anyone see pitfalls with that scenario?????????? Further tibits of info from Mi. Lottery. Prize check is drawn from Bank One. Google cdars. Using one bank you can deposit up to 30million with FULL FDIC insurance. It's a great place to park you money. Also check tax free, both Fed and State, accounts such as Fidelity for temporally parking places. No one really has to have a lawyer!

                            Or you could use Citibank as a place to park your money and invest with Primerica, a Citi Company.

                            Get MONEY!!! Winning a JACKPOT lottery is all the HOPE and CHANGE I desire!!!  NOW give me MONEY!US Flag

                            The guy who won the presidency in 2008 really won the lottery...he is now millions richer, travels in first class style, and even has a staff that would be the envy of the richest Powerball winner (she has a staff of 2). Every night he goes to sleep, he probably plays the close of Dave Chappelle's Show: I'm rich beyatch!

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                              Posted: April 14, 2007, 3:14 pm - IP Logged

                              Citibank would charge higher than average fees for the privilege of their services.