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Ottawa barber, client share $32M lottery win

Topic closed. 33 replies. Last post 8 years ago by amininflorida.

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Trained2beRich's avatar - home
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Posted: July 9, 2008, 1:41 pm - IP Logged

Sharing with their relatives does not mean equal shares.  There is nothing in the story to indicate the others are equal lottery winners. 

I'd share with a large group of extended family, too, but most of them would only get one or two percent!

thats true but if relative A got 10k and relative B got 5K and somehow it came up during a conversation Relative B would be jealous and would ask why do you like A more than me? etc. I would treat all equally.

    Trained2beRich's avatar - home
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    Posted: July 9, 2008, 1:43 pm - IP Logged

    A blind trust is a trust in which the executors or those who have been given power of attorney have full discretion over the assets, and the trust beneficiaries have no knowledge of the holdings of the trust. Blind trusts are generally used when a settlor (sometimes called a trustor or donor) wishes to keep the beneficiary unaware of the specific assets in the trust, such as to avoid conflict of interest between the beneficiary and the investments. Politicians often place their personal assets (including investment income) into blind trusts, to avoid public scrutiny and accusations of conflicts of interest when they direct government funds to the private sector.

    *source: wikipedia

    In other words, I think this means that the money is placed in a company's care (trust) to take care of on your behalf.  Because the money is in a trust's name and not yours, if someone wanted to sue you, they couldn't make a claim on your winnings because technically, the money doesn't belong to you.

    That's my understanding of it.  Someone please correct me if I'm worng.

    Hey Mike32 looks like I was misinformed about a blind trust. what i meant is that would collect it anonymously.

      Trained2beRich's avatar - home
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      Posted: July 9, 2008, 1:47 pm - IP Logged

      Sharing with their relatives does not mean equal shares.  There is nothing in the story to indicate the others are equal lottery winners. 

      I'd share with a large group of extended family, too, but most of them would only get one or two percent!

      for clarifcation purposes each person will get 1 or 2 percent? if thats true that 160k (according to no tax canada as one poster stated) per person. and YOU will pay taxed on it.  Unless you mean there share the 1 or 2 percent pot

        Uff Da!'s avatar - InCelebration 001.jpg
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        Posted: July 9, 2008, 5:55 pm - IP Logged

        thats true but if relative A got 10k and relative B got 5K and somehow it came up during a conversation Relative B would be jealous and would ask why do you like A more than me? etc. I would treat all equally.

        In my case it would be far clearer than just "coming up in a conversation."  I've signed a notorized statement gifting shares in any MM ticket purchased in the next year.  In the event of a jackpot win, we'd have to form a legal partnership, corporation or trust with all parties named and the number of shares each would be there for all to see.  However, I see absolutely no reason to keep all shares alike.  Why should my adult step-grandchildren get as much as my stepchildren?  Why should my adult neices and nephews get as much as my brothers and sisters?  The younger generation in these cases will inherit whatever amount their parents don't use up in their lifetimes anyway.  And we are talking about people of the older generation in their 60s to 80s, some in poor health. 

        I've also designated a larger percentage to one disabled relative than to her siblings.  She has been paralyzed and otherwise in such poor health as to require assisted living facilities for years.  Before she got a dime of the money, she'd have to pay back the state for all the years of social benefits.  (With less than a jackpot win, she would not have anything left to improve her life now.)  And she presently owns nothing of any value.  Her siblings, by contrast, all have their homes already paid off.  I know my family well enough to know there would be no jealousy that she'd get more than twice what the others got.  Some families aren't that way, I know, but I assure you, my relatives are not greedy and each would appreciate whatever they did get.  They try to help other relatives who have less than they have as it is, but since none are wealthy, that help is relatively small.

          justxploring's avatar - villiarna
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          Posted: July 9, 2008, 5:55 pm - IP Logged

          Hey Mike32 looks like I was misinformed about a blind trust. what i meant is that would collect it anonymously.

          Depends on where you live. It's legal in some states to claim your prize as a Blind Trust (not in Florida)  Actually, a Blind Trust or LLC can claim a lottery prize in FL but your name, city of residence, the date you won and the amount will still be available to the public.

            Uff Da!'s avatar - InCelebration 001.jpg
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            Posted: July 9, 2008, 6:26 pm - IP Logged

            for clarifcation purposes each person will get 1 or 2 percent? if thats true that 160k (according to no tax canada as one poster stated) per person. and YOU will pay taxed on it.  Unless you mean there share the 1 or 2 percent pot

            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.  Smile

            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.

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              Posted: July 9, 2008, 7:25 pm - IP Logged

              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.

                DC81's avatar - batman39
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                Posted: July 9, 2008, 8:16 pm - IP Logged

                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.Leaving

                You can't predict random.

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                  anderson
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                  Posted: July 9, 2008, 11:15 pm - IP Logged

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

                    ThatScaryChick's avatar - x1MqPuM
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                    HI EVERYONE IM JUST INTRODUCING MYSELF  SINCE IM NEW  MY NAME IS SHORTMOMA1  BYE BYE!Hyper

                    Welcome to Lottery Post Shortmoma1! See Ya!

                    "No one remembers the person who almost climbed the mountain, only the person who eventually gets to the top."

                      MillionsWanted's avatar - 24Qa6LT

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

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

                        GamerMom's avatar - tails

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                        Posted: July 10, 2008, 10:23 am - IP Logged

                        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.

                          justxploring's avatar - villiarna
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                          Posted: July 10, 2008, 1:31 pm - IP Logged

                          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.  Yes Nod

                            GamerMom's avatar - tails

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                            Posted: July 10, 2008, 1:38 pm - IP Logged

                            Buy a home on the beach and hire your parents to be the caretakersYes Nod

                             

                            That's an awesome idea!

                              Sandra Dee's avatar - dandy
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                              Posted: July 11, 2008, 11:41 am - IP Logged

                              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.  Yes Nod

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