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Lottery winners share money advice

Topic closed. 43 replies. Last post 11 years ago by rdc137.

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whitmansm2's avatar - Lottery-029.jpg
Right here...can't you see me?
United States
Member #21521
September 10, 2005
131 Posts
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Posted: March 30, 2006, 11:28 am - IP Logged

I really don't think you can hide or be anonymous to family and friends, which seems to be where the trouble is. It's easy to say "no way' to a stranger, a little harder when someone you know is in need or claims they are in need.  The key is being decisive and tough minded about what you will do and won't do with the money and sticking to your guns.

Completely agree. I've already told my family who I'll be sharing with. (NEVER mentioned an amount) My family (husband, children) will obviously benefit the most. My church will be given my 10%. (good tax write-off BTW) Then my two sisters and parents will be the others. (hubby's dad and brother are already VERY well off, but I'll leave it up to him if he wants to share)

Other than that....nothing. Someone here said it best when they said "My long lost relatives....can stay lost"

As for childsupport....both me and my husband have kids with our ex's that is SHARED custody. We all have them equal amount of time. We're claiming in a blind trust not because we dont' want to take care of the kids, 'cause we can do that when they're with us, but because we don't want to take care of our ex's. (kids will be taken care of now and with trust funds)

I think the main thing to do when you win a jackpot, is to know ahead of time what to do. There is no "winging it" when it comes to large amounts of money. I already know that I wont pay for a house outright the first year. I need that deductible! I'll be giving to charity....I need that deductible too!

Seek profession advise. Don't just pick someone out in a book either. Research them!!!

Just my humble opinion.

No No

Don't cry over spilled milk.  Go milk another cow!!

Stephanie

    Uff Da!'s avatar - InCelebration 001.jpg
    Washington State
    United States
    Member #33973
    February 26, 2006
    347 Posts
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    Posted: March 30, 2006, 12:12 pm - IP Logged

    The only way 2 hide your idenity

    is 2 give your lucky ticket 2 your

    grandma/grandpa n have them

    go in and collect your winnings,

    lucky me i have honest grand-

    parents that would love 4 me 2

    live a comfortable lifestyle with

    me n my family! Cool 





    Bad, bad move!  Do you realize that any amount your grandma/grandpa gave you beyond $12,000 a year would be subject to gift taxes in addition to income taxes?  And that all they'd be able to give everyone altogether in their lifetime beyond the $12,000 a year per person would be one million dollars?  Anything beyond that is subject to an additional tax of 35-46%.  And if your parents are still alive, it is even worse.  The money given to grandchildren would also be subject to a generation-skipping tax, which is 55%!

    And it gets even worse.  What if your grandparents died before changing their wills?  They might not have left any of their estate to you.  No, you do not want anyone else to claim the money for you of any large win.

    Disclaimer:  I am neither an attorney nor an accountant.  Anyone who actually receives a large lottery win would need to see both.

      whitmansm2's avatar - Lottery-029.jpg
      Right here...can't you see me?
      United States
      Member #21521
      September 10, 2005
      131 Posts
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      Posted: March 30, 2006, 12:17 pm - IP Logged

      Disclaimer:  I am neither an attorney nor an accountant.  Anyone who actually receives a large lottery win would need to see both.

       

      LMAO  smart move.  lol

      No No

      Don't cry over spilled milk.  Go milk another cow!!

      Stephanie

        dumars798's avatar - batman17
        Atlanta
        United States
        Member #28656
        December 20, 2005
        5675 Posts
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        Posted: March 31, 2006, 1:15 am - IP Logged

        The only way 2 hide your idenity

        is 2 give your lucky ticket 2 your

        grandma/grandpa n have them

        go in and collect your winnings,

        lucky me i have honest grand-

        parents that would love 4 me 2

        live a comfortable lifestyle with

        me n my family! Cool 





        Bad, bad move!  Do you realize that any amount your grandma/grandpa gave you beyond $12,000 a year would be subject to gift taxes in addition to income taxes?  And that all they'd be able to give everyone altogether in their lifetime beyond the $12,000 a year per person would be one million dollars?  Anything beyond that is subject to an additional tax of 35-46%.  And if your parents are still alive, it is even worse.  The money given to grandchildren would also be subject to a generation-skipping tax, which is 55%!

        And it gets even worse.  What if your grandparents died before changing their wills?  They might not have left any of their estate to you.  No, you do not want anyone else to claim the money for you of any large win.

        Disclaimer:  I am neither an attorney nor an accountant.  Anyone who actually receives a large lottery win would need to see both.

        IT ALL DEPENDS ON WHAT STATE

        YOU WIN BIG AT!!!! ME N MY

        FAMILY WILL ALL BE We Were All Just Chillaxin 

        COUNTING OUR $$an>

                     





                Smart bets...... Equal Phat Pocket$!

                             

                     





          Uff Da!'s avatar - InCelebration 001.jpg
          Washington State
          United States
          Member #33973
          February 26, 2006
          347 Posts
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          Posted: March 31, 2006, 10:19 am - IP Logged

          Dumars798 said:

          IT ALL DEPENDS ON WHAT STATE YOU WIN BIG AT!!!!  ME N MY FAMILY WILL BE COUNTING OUR $$an>

          _______________________

          Mmmmmmm, sorry.  It does not depend upon the state.  The gift tax and generation skipping taxes to which I refer are federal.  I suggest you consult the IRS website and do an appropriate search.  http://www.irs.gov/

            TheGameGrl's avatar - character catafly.jpg
            A long and winding road
            United States
            Member #17084
            June 10, 2005
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            Posted: March 31, 2006, 8:52 pm - IP Logged

            and the way to get around the gift tax is to hire that family member to do chores (like picking up two leaves on the fourth Tuesday of February) . Now that we resolved the ever so debatable rule on gift taxing, just hire the person, create a trust , do what ya must, but by golly keep uncle sams hands out of the fortune!

             

            ~~Is it true, Is it kind,Is it necessary. ~~~

             Thanks be to the giving numbers: 1621,912,119 02014

              Uff Da!'s avatar - InCelebration 001.jpg
              Washington State
              United States
              Member #33973
              February 26, 2006
              347 Posts
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              Posted: March 31, 2006, 9:24 pm - IP Logged

              Methinks the IRS is smart enough to know that paying someone a million or several million dollars a year for unskilled labor is a sham and the person who tries would be treated accordingly.  And even if it did work, that money would be taxed again as salary, so it would be taxed twice.  And if the amount was great enough, that would also be in the 24-35% marginal tax bracket, after the grandparents had already paid 25-35% tax on the amount.  Plus the "employer" and "employee" would have to pay social security taxes on the amount.  So where would be the gain?

              I agree that there would probably be ways to hire relatives and pay them amounts larger than the gift tax exclusion and still have it legal.  But in most cases, that would likely only work for much smaller jackpots, IMHO.  If we are talking about just a one million dollar jackpot, for instance, this might have some possibilities.  But for a jackpot like the MM or PB, I just don't think it would fly.

              There would still remain the problem of transferring remaining assets upon the grandparents death.  Just how do you propose getting around the estate tax?

                dumars798's avatar - batman17
                Atlanta
                United States
                Member #28656
                December 20, 2005
                5675 Posts
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                Posted: April 1, 2006, 12:34 am - IP Logged

                and the way to get around the gift tax is to hire that family member to do chores (like picking up two leaves on the fourth Tuesday of February) . Now that we resolved the ever so debatable rule on gift taxing, just hire the person, create a trust , do what ya must, but by golly keep uncle sams hands out of the fortune!

                 

                lol, i agree with u the

                gamegrl.





                        Smart bets...... Equal Phat Pocket$!

                                     

                             





                  TheGameGrl's avatar - character catafly.jpg
                  A long and winding road
                  United States
                  Member #17084
                  June 10, 2005
                  4523 Posts
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                  Posted: April 1, 2006, 1:08 am - IP Logged

                  There are reasons that tax advisors exist. Family Trust, Corporate Trust, Create a tax shelter. The FACTS are, Rockerfeller, Brachs, and Even Donald Trump himself hires family. And they do it to keep the money in the family. The US GOVT doesnt intercede on corporate america and say what Maximum amount an employer pays, They only set the minimum wage. So long as a person files and doesnt hide income they are somewhat safe from audits....

                  Each state is different so I cant say what tax bracket would transpire in the worse case scenario of no will or estate planning. 

                  ~~Is it true, Is it kind,Is it necessary. ~~~

                   Thanks be to the giving numbers: 1621,912,119 02014

                    Avatar
                    Baton Rouge, LA
                    United States
                    Member #4602
                    May 7, 2004
                    699 Posts
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                    Posted: April 1, 2006, 11:23 am - IP Logged

                    The only way 2 hide your idenity

                    is 2 give your lucky ticket 2 your

                    grandma/grandpa n have them

                    go in and collect your winnings,

                    lucky me i have honest grand-

                    parents that would love 4 me 2

                    live a comfortable lifestyle with

                    me n my family! Cool 





                    Some people claim the money using a trust or a LLC. It is possible to find out who is behind those in most cases, but it takes more work than just picking up a newspaper or watching TV.

                    PrisonerSix


                      United States
                      Member #379
                      June 5, 2002
                      11296 Posts
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                      Posted: April 1, 2006, 3:50 pm - IP Logged

                      There are reasons that tax advisors exist. Family Trust, Corporate Trust, Create a tax shelter. The FACTS are, Rockerfeller, Brachs, and Even Donald Trump himself hires family. And they do it to keep the money in the family. The US GOVT doesnt intercede on corporate america and say what Maximum amount an employer pays, They only set the minimum wage. So long as a person files and doesnt hide income they are somewhat safe from audits....

                      Each state is different so I cant say what tax bracket would transpire in the worse case scenario of no will or estate planning. 

                      Brachs...the candy people?

                        Avatar
                        Delaware
                        United States
                        Member #30273
                        January 14, 2006
                        494 Posts
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                        Posted: April 1, 2006, 7:16 pm - IP Logged

                        The only way 2 hide your idenity

                        is 2 give your lucky ticket 2 your

                        grandma/grandpa n have them

                        go in and collect your winnings,

                        lucky me i have honest grand-

                        parents that would love 4 me 2

                        live a comfortable lifestyle with

                        me n my family! Cool 





                        Some people claim the money using a trust or a LLC. It is possible to find out who is behind those in most cases, but it takes more work than just picking up a newspaper or watching TV.

                        PrisonerSix

                        If you use a Delaware LLC the names are kept private. It doesn't matter what state you win in to Delaware. If you really want to ensure secrecy, hire an incorporation service to form the LLC and then hire a lawyer or accountant to claim the prize on behalf of such an agency. Pay them the fee (which would be a deductable business expense), then the profits pass through to the owners. You could reassign or add additional owners at later dates without the gift tax. I've worked in the incorporation industry before and it is amazing what you can do with Delaware LLC's.

                        ps: I'm not a lawyer or accountant.


                          United States
                          Member #379
                          June 5, 2002
                          11296 Posts
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                          Posted: April 2, 2006, 1:11 pm - IP Logged

                          The only way 2 hide your idenity

                          is 2 give your lucky ticket 2 your

                          grandma/grandpa n have them

                          go in and collect your winnings,

                          lucky me i have honest grand-

                          parents that would love 4 me 2

                          live a comfortable lifestyle with

                          me n my family! Cool 





                          Some people claim the money using a trust or a LLC. It is possible to find out who is behind those in most cases, but it takes more work than just picking up a newspaper or watching TV.

                          PrisonerSix

                          If you use a Delaware LLC the names are kept private. It doesn't matter what state you win in to Delaware. If you really want to ensure secrecy, hire an incorporation service to form the LLC and then hire a lawyer or accountant to claim the prize on behalf of such an agency. Pay them the fee (which would be a deductable business expense), then the profits pass through to the owners. You could reassign or add additional owners at later dates without the gift tax. I've worked in the incorporation industry before and it is amazing what you can do with Delaware LLC's.

                          ps: I'm not a lawyer or accountant.

                          You mean if I win Mega Millions in NY or Powerball in Connecticut I should get help from Delaware?

                            Avatar
                            Delaware
                            United States
                            Member #30273
                            January 14, 2006
                            494 Posts
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                            Posted: April 2, 2006, 1:28 pm - IP Logged

                            It's one way you could do it. On the charter document (the paperwork that actually forms the LLC with the Secretary of State), there are only three required pieces of information:

                            1) The name of the LLC

                            2) The name and address of its registered agent (a person or company with a physical location in Delaware that can be served with any legal business by the state). You can be your own agent, but if you are doing this for privacy, you will want to pay a fee to a service.

                            3) Signature of the incorporator, who need not be the person(s) who actually own the LLC.

                            Delaware charges an LLC an annual fee of $200, and a good registered agent will charge $50 per year to maintain the address on your behalf (make sure its a company that will not raise your rates, send me a private message if you need recommendations). The fees to file the company through a service should be in the $450 range, with same or next day turnaround. I've seen LLC's formed in under 1 hour by the state, they are quick. If you are not a resident and do no business in Delaware, you will NOT pay Delaware income tax at all. You also do not need to be a resident or have a Delaware (or USA for that matter) bank account.

                            I once again state that I am not an attorney or accountant, but I have worked in this industry for several years.