BRIDGEWATER, Mass. — 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 do wonder why this is legal/possible in Massachusetts but not in other state, at least not to this extent.
If I recall correctly, Ohio and Delaware are two of a handful of states at one end, and New York and Virginia are at the other end... And in my opinion, all the states in between are different shades of anonymity that an experienced lawyer can try to navigate.
And it always brings up the question, do I sign the ticket and then get a notery to help re-sign the ticket and transfer ownership to an entity or what?
And to quote a presidential candidate from for years ago, "corporations are people."
If you are actually from Germany, It is understandable not to know the body of laws that we place upon ourselves. Massachusetts have in this matter their own laws. The federal government allows the states to govern their citizens. It is a lot more complicated but in this matter even though it is a lottery that is played almost in all states, but the reporting and governing of the lottery is up to the state
Every lottery winner should have the option of collecting their winnings through a Trust and not being told that if they do, they will be exposed as a winner nonetheless. It should be up to the winner to make the decision as to whether they want to go before the cameras or not. These State lottery commissions do not interview folks who have lost hundreds of thousands of dollars playing the lottery - why should they want to interview you when you win? It should be your call, your money, your win, your choice.
I think that it is dreadful that a individual who wins the lottery that it is made public record.it is like pulling a sign around ones neck that says ROB ME PLEASE!!! it is wrong and I would definitely set up a trust way before the ticket was claimed...I don't want anybody to know if I win accept the person who sets up my trust and a lawyer.
Trust is the only way to go. In fact make it a duo.
A few months ago, when a poster started a thread about the importance of pushing all the states to allow for claims to be made anonymously, one respondent wrote that there has been no evidence that any lottery winner has been actually put in harms way due to strangers knowing about a lottery winner. That the only people who have suffered have done so at the hands of friends and relatives. They didn't view kidnapping and death threats a big enough factor since it was only threats, not an overt action.
Well, hopefully gaining a stalker is enough of a detriment that they can see the importance of anonymity. Hopefully they don't need something more overt, like an actual kidnapping or murder to see publicizing a lottery winner's information brings with it a detriment that outweighs the need for "transparency". Especially since a lack of transparency has had no negative effect on the lottery in the states which allow for anonymity.
People who donate large sums of money to various entities/charities etc can do so anonymously. So, I think a lottery winner should have the same option.
Does anyone know if a person can claim via trust in GA? Says nothing on their website about it either way.
Hi there,
everyone I am new to this website so I figure I hello to everyone : ). If I win a big lottery I would definitely claim as a trusts as well to protect myself and love one. And also I have question that I want to ask that I couldn't find yet on this website. I know that you can buy lottery from other countries but can you claim the prize if and that is a huge if you win the jackpot.
Hopefully the jackpot goes back up to $300+ million dollars soon. And Good luck everyone and thank you for answering my question in advance.
First and most importantly: welcome Lexuslfa!
as far as claiming lottery wins via trusts in mass - its nice that Mass allows this - and fascinating that RI is almost polar opposite in views re: let everyone know everything as long as its not about ... whomever is in power.
They tried to pass legislation earlier this year in Michigan to allow lottery winners to remain anonymous but it has stalled out in the senate. Boo Hiss!
HB 4433, Michigan: Gaming; Lottery; Multistate Lottery Games; Allow Winner to remain anonymous. Amends Sec. 25 of 1972 PA 239 (MCL 432.25).
No harm done? What about that poor transplanted Chicagoan who was a lottery winner and buried in concrete in his Florida driveway? Maybe he was functionally illiterate and that 'woman' took advantage of this fact and took him to the double C's: Cleaners and Cemetery. Awful.
Vaguely I remember the Courier-Journal, Louisville KY newspaper outed a lottery winner who claimed his winnings anonymously. They went through the Freedom of Information Act. Best to my recollection he did not have a Trust. My point is can folks use the FOIA to find out anonymous lottery winners? Personally I don't care, more power to the winners.