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More lottery winners using trusts to accept prizes anonymously

Topic closed. 69 replies. Last post 11 months ago by OneTrickpony.

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Erzulieredeyes's avatar - spider miss.png
Painesville, Ohio
United States
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Posted: December 3, 2015, 12:46 am - IP Logged

Erzulieredeyes, would that be Gross or Net $2M?

I would just do a LLC for anything under 2million net...most likely claim in my own name for anything under 2million though most lottopost members suggest otherwise. A trust doesn't protect against people with bad intentions to do harm or take your $ away. Esp if your buying flashy cars or living in fancy neighborhoods. Trust fund babies get taken advantage of all the time. It's not fool proof or guaranteed a life of sanity or anonymity just because u put ur money into a trust.

    Groppo's avatar - cat anm.gif

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    Posted: December 4, 2015, 1:17 am - IP Logged

    I would just do a LLC for anything under 2million net...most likely claim in my own name for anything under 2million though most lottopost members suggest otherwise. A trust doesn't protect against people with bad intentions to do harm or take your $ away. Esp if your buying flashy cars or living in fancy neighborhoods. Trust fund babies get taken advantage of all the time. It's not fool proof or guaranteed a life of sanity or anonymity just because u put ur money into a trust.

    OK, something new to me, again. Why would you set up an LLC (if it's the same as a normal Limited Liability Corporation) ?
    So, what if I win, and don't set up either a trust or an LLC?

    What's the worst thing that could happen to me?


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      Posted: December 4, 2015, 8:21 am - IP Logged

      Personally I wouldn't see the need for it if I won.

      Lotteries are way too easy to win now compared to the past, so winners are very common & it's not some big deal anymore.

      If I win, yeah take my picture, publish my name, whatever I don't care.  I don't think anyone would even notice, care, or even bother me.  If they did, I have a place on another continent I could disappear to where I guarantee that I would never be found.

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        NY
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        Posted: December 4, 2015, 2:43 pm - IP Logged

        OK, something new to me, again. Why would you set up an LLC (if it's the same as a normal Limited Liability Corporation) ?
        So, what if I win, and don't set up either a trust or an LLC?

        What's the worst thing that could happen to me?

        The worst thing? I guess that depends on what kind of things you find unpleasant. Here's one scenario. On the way back from claiming your prize you could be in a car accident that leaves you in a vegetative state. Depending on what you think is worse, your family (or somebody you don't even know) will decide to either let you be fed through a tube for the rest of a long and incredibly boring life, or pull the plug in a month or two. I guess it really wouldn't matter given your sorry state, but since the accident was your fault all the money you won, along with every dime you already had, could end up in somebody else's bank account.

        Alternatively you might lose it all to somebody who was about to knock on your door to ask for a handout but tripped on your welcome mat and broke their back.

        "Anything to add to Lucky6025's excellent reply?"

        Sure. Reading what somebody else cut & pasted from the web doesn't make you nearly as knowledgeable as somebody who deals with this sort of thing day in and day out as their living. Even if you were that knowledgeable you're not as objective as somebody else. There's a reason for the adage that “he who represents himself has a fool for a client.”

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          Posted: December 4, 2015, 10:38 pm - IP Logged

          There is nothing to be gained by having your picture taken and your name out there to be a target for beggars, stalkers, thieves, fake lawsuits, sob stories, cyberattacks, etc. You aren't going to get a dime extra for helping the lottery get publicity. Unless you find the publicity a benefit, why do it? 

          I know someone who won pretty big in the pre-internet age and he told me it took a solid year for the crazies to drop off and target someone else, so I imagine with the entire world informed on the internet it is much worse now. 

          I'm as curious as anyone else about who wins, but that is the world we live in. The people who live next door to the lottery winner might be just as rich but they don't have the people mentioned above showing up to beg for money because their name isn't announced in the media. There is a reason why the guy with $50 million doesn't announce to the world "Hey, I have $50 million, I'm super rich, here's my address." 

            Funtimz's avatar - Lottery-022.jpg

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            Posted: December 5, 2015, 9:36 pm - IP Logged

            They didn't view that as a direct cause and effect of the lottery publishing his name. They may have a point because Shakespeare told a lot of people who hadn't known he'd won, that he'd won. Had this been a Camelot lottery, he would have been advised not to do that. Unfortunately, if you hand a person who can't read or write millions of dollars with no guidance, I really don't see anyway that was going to end well. I mean look at that father/son moron duo. Did anyone really think that was going to end any other way?

            You know how experienced wedding planners can tell you exactly which couples will get a divorce? We know which winners are destined for the poor house. The publicity just speeds it along.

            How did it end for the father/son "moron" duo...?

            Take Risks: If you win, you'll be happy.  If you lose, you will be wiser...

              Bondi Junction
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              Posted: December 24, 2015, 3:13 am - IP Logged

              A $1 million scratch ticket was recently sold in Bridgewater, Massachusetts, but despite regulations requiring the Massachusetts State Lottery to disclose big winners we may never know who purchased the winning ticket.

              In a picture published on the Lottery's website announcing the winning, it is not the winner accepting the prize money. Instead, it is Brady McDevitt, an attorney and the trustee of The Apple Nominee Trust of Milton.

              McDevitt was able to accept the check as a trustee on the winner's behalf because the winner decided to go the increasingly popular route of forming a trust to claim their prize.

              Although Lottery regulations state that a claimant's name, city or town, image, amount of prize, claim date and game are all public record, trusts have become a common tool for winners to skirt the rules and remain their anonymity when claiming a big prize.

              "Trusts and other legal entities fulfill the definition of a legal person," said Christian Teja, the director of communications for the Massachusetts Lottery. "Consequently trusts are allowed to claim Lottery prizes."

              The rules requiring the public disclosure of Lottery players who win big money were originally put in place to promote transparency and create confidence that the games are being run fairly and winnings aren't going to Lottery employees who are barred from playing.

              "The reason they have that rule is so the public knows that there is not some fraudulent scheme going on where people in the Lottery or a certain group of people are always winning like it's a scam," McDevitt said.

              McDevitt, who has accepted two $1 million prizes this month as a trustee of the behalf of clients who set up trusts to collect their winnings, said that legal entities like corporations or LLCs — limited liability companies — can also be used to collect prizes, but trusts are the most popular choice because they are the easiest to set up.

              "You have a little more freedom and you don't have to file anything or have any filing fees with the state," McDevitt said, adding that a trust can be set up in matter of days.

              Teja said that typically less than 10 people will use a trust to claim their prize every year, but that the number has been inching up in recent years.

              So far in 2015, 12 trusts have accepted a total of $32 million on behalf of Lottery winners. There have been more than 150 $1 million Lottery winners to date this year.

              Teja said that trusts can be set up by winners for a variety of reasons, including for financial planning purposes or legal protection if a person is sharing the winnings with other people. However, the most popular reason appears to be so that people can maintain their anonymity.

              "The main reason my clients have done it have not been financial planning reasons. It has just been so they don't have to have their picture taken or have any publicity with it," said McDevitt

              Many Lottery winners who seek anonymity after winning a big prize due so out of safety concerns.

              "One of the clients I have done it for had won (the Lottery) previously, and it had gotten to the point where she had to call the police because someone was stalking her," McDevitt said.

              During her campaign in 2014, Treasurer Deb Goldberg weighed in on whether she thought winners should be able to accept the prize via trust, and argued that even if a trust is used the identity of the winner should be made public.

              However, neither the Lottery nor the Legislature have moved to make the issue more transparent, and one legislator has even filed legislation that would make it even more difficult for the public to find out who won a big prize.

              In April, state Sen. Mark Montigny, D-New Bedford, filed a bill that would no longer make the identity of Lottery winners public record if passed.

              The bill states in part "the Massachusetts State Lottery Commission shall not publicly disclose the name, address or other identifying information of any holder of a winning ticket or require any winning ticket holder to perform any public actions in connection with the awarding, payment or collection of prize moneys where a holder of a winning ticket provides a written request to the Commission."

              I renewed my Mass lottery subscription, a bit of fun for me while helping local communities in Massachusetts.


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                BuyLow's avatar - palm tree.jpg
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                Posted: January 13, 2016, 8:05 am - IP Logged

                I do wonder why this is legal/possible in Massachusetts but not in other state, at least not to this extent.

                FL allows claiming by trust.

                  Drenick1's avatar - villiarna
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                  Posted: January 13, 2016, 9:06 am - IP Logged

                  FL allows claiming by trust.

                  If that's true I wonder why Gloria M didn't go that route when she won the PB jackpot? Does anyone know if North Carolina allows Trust to claim lottery prizes?

                    MaximumMillions's avatar - Lottery-013.jpg

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                    Posted: January 13, 2016, 9:55 am - IP Logged

                    FL allows claiming by trust.

                    Are you sure about that? 

                    Don't they also release the personal info of winners?

                    Like drenick1 says below, why wasn't Gloria advised to do so?

                    Can you point me to the article/law on that? Not being antagonistic, just curious.

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                      Posted: January 13, 2016, 10:37 am - IP Logged

                      They cant stop you from forming a trust. However, that will not stop them from releasing your name and home town if state law mandates it.

                        MaximumMillions's avatar - Lottery-013.jpg

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                        Posted: January 13, 2016, 11:13 am - IP Logged

                        They cant stop you from forming a trust. However, that will not stop them from releasing your name and home town if state law mandates it.

                        Right, but the question also is: Whose name will be written on the oversized check?

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                          Posted: January 13, 2016, 11:36 am - IP Logged

                          Right, but the question also is: Whose name will be written on the oversized check?

                          Doesnt matter whose name is on the big check.  The law says the winner's name must be public info.  In Calif you do not have to have your photo taken and you do not have to say anything that can then be reported to the press.

                            TheMeatman2005's avatar - lightening
                            Brooklyn, NY
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                            Posted: January 13, 2016, 11:53 am - IP Logged

                            I would just do a LLC for anything under 2million net...most likely claim in my own name for anything under 2million though most lottopost members suggest otherwise. A trust doesn't protect against people with bad intentions to do harm or take your $ away. Esp if your buying flashy cars or living in fancy neighborhoods. Trust fund babies get taken advantage of all the time. It's not fool proof or guaranteed a life of sanity or anonymity just because u put ur money into a trust.

                            LLC's take about 4-6 weeks to form, whereas a trust can be set up in about 2-3.

                            If you won, even $2 mil, would you want to wait the extra time before claiming your prize?

                            The Meatman

                            “The quickest way to double your money is to fold it in half and put it in your back pocket.” Will Rogers

                            Winning happens in a flash, Like A Bolt Of Lightning!  Patriot

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                              Posted: January 13, 2016, 3:13 pm - IP Logged

                              In Washington state there is no such luck.  You can claim through trust I believe but your name is required and they will provide it to the press if they come snooping around.  The court was clear in the last lottery case here.  The public has the right to know who the winner is they said (paraphrasing).

                              "Understand... people are more complicated than the masks they wear in society... everyone is playing to win, and some people will use moral justifications to advance their side"

                                                                                                                                                                                        Robert Greene