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Florida woman gives away $43 million Lotto jackpot

Topic closed. 69 replies. Last post 9 months ago by Tucker Black.

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Groppo's avatar - cat anm.gif

United States
Member #162631
January 7, 2015
504 Posts
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Posted: February 28, 2016, 7:43 pm - IP Logged

Why even claim the Winnings if you're giving it away to Family? Let the Family Claim it and Avoid the Gift Tax!

Even with 18.6 million (according to Music*'s calc.) left in liquid, it's hard for me to believe they're not going to give some of it away.

Even though Florida is a  "0% lotto tax" state, according to usamega.com, whoever claims it is going to pay 25% Federal tax, right off the bat.  Then, I don't know how the individual states calculate the lotto tax, if they are a state that will tax your lotto winnings.  Do they look at last year's returns? Who knows what would have been better?

But, they're going to have a hefty tax, either way, and I'm pretty confident with Music*'s calculation.

The Feds. get you, coming and going, it seems.

  • Don't chase the numbers you play.
  • Play only numbers you've already played, plus however many random picks.
  • But, ALWAYS the regular numbers you play.  This will make you a winner, not a chaser.
            (so far, though, I've yet to win any significant lotto prize)
    brees2012's avatar - animal whale.jpg

    United States
    Member #125177
    March 26, 2012
    176 Posts
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    Posted: February 28, 2016, 8:37 pm - IP Logged

    When ever , I win the lottery , I will share my winnings

    with 10 people and donate to charities .

    I will make sure all 11 of us live with in our means .

    No Mansions , No Luxury vehicles like into the $100,000's ,

    etcccc ..... I've many charities to give too.

    Make the money last for Generations .

    This isn't my entire plan there's much more !!!!

      Tony Numbers's avatar - Lottery-022.jpg
      Bronx ny
      United States
      Member #158517
      August 25, 2014
      286 Posts
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      Posted: February 28, 2016, 9:38 pm - IP Logged

      People can say anything they want to the cameras, it doesn't mean they will follow through. I'm writing my jackpot story right now, knowing it's going to make those lottery posters twist.

        Teddi's avatar - Lottery-008.jpg

        United States
        Member #142499
        May 13, 2013
        1183 Posts
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        Posted: February 28, 2016, 9:49 pm - IP Logged

        This is a great story and it's nice to hear how many people think kindly of them. I get it. At 90 the house is probably paid, debts are gone and they've settled into this comfortable routine. Why change what you're happy with?

        However, even though it is a lot of money that the family never had before, why-o-why would they give away so much in taxes for no good reason? My estimate puts them throwing away about $8.5M assuming each spouse is allotted ~$5.4M before the gift tax kicks in. 

        Maybe after they speak with an accountant or tax attorney, they'll change their minds about doing it this way. Should have either given the ticket to the family for them to collect, or included them in claiming the ticket, then put their share in a trust and have it be divided out without additional tax burdens. $8 million dollars down the drain if done the way the article is stating. Hope it was just poor reporting and not true.

          LottoLucy's avatar - hereslucy header.jpg

          United States
          Member #131594
          August 14, 2012
          171 Posts
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          Posted: February 28, 2016, 10:00 pm - IP Logged

           After the IRS gets 40% they will end up with $18.6 million. 

           The gift tax could also be 40% or higher if you give a person more than $14,000.00 per year.

          That $14,000 is only the ANNUAL exclusion and both spouses can give that much away so really it is $28,000 per married couple. Then they have their Lifetime Exclusion which is $5,450,000 per person in 2016 or $10.9 million per couple they can give away. So while they can't give it all away they can give a good chunk of it away without incurring tax. That $5.45 million figure is for estate and gift tax so the estate might have to pay estate tax on anything they had left but in the mean time they can watch their family enjoy their good fortune while they are still living.

          Lotto Lucy

            LottoLucy's avatar - hereslucy header.jpg

            United States
            Member #131594
            August 14, 2012
            171 Posts
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            Posted: February 28, 2016, 10:22 pm - IP Logged

            This is a great story and it's nice to hear how many people think kindly of them. I get it. At 90 the house is probably paid, debts are gone and they've settled into this comfortable routine. Why change what you're happy with?

            However, even though it is a lot of money that the family never had before, why-o-why would they give away so much in taxes for no good reason? My estimate puts them throwing away about $8.5M assuming each spouse is allotted ~$5.4M before the gift tax kicks in. 

            Maybe after they speak with an accountant or tax attorney, they'll change their minds about doing it this way. Should have either given the ticket to the family for them to collect, or included them in claiming the ticket, then put their share in a trust and have it be divided out without additional tax burdens. $8 million dollars down the drain if done the way the article is stating. Hope it was just poor reporting and not true.

            I think their tax bill would "only" be about $3.2 million. They get about $18.8 after taxes, can exclude $10.9 million and the top gift tax rate is 40% on what is left. It is still crazy, crazy, crazy.

            Then I was thinking....maybe she is crazy like a fox! You probably don't get to be 90 without learning a thing or two. So she tells the media that she is giving it all away to family so no one bothers her or asks her for anything. Has any one ever seen this so called family? Those could be models in the photo with her. Shocked

            Ok, not really serious about that last bit but you never know. Smile

            I really hope when she says she is giving it all away to family she means planned giving with the advice of a good attorney.  I hate to think of the IRS getting all that loot due to poor planning.

            Lotto Lucy

              picktowin's avatar - Lottery-034.jpg
              wisconsin
              United States
              Member #49379
              January 28, 2007
              2356 Posts
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              Posted: February 28, 2016, 10:34 pm - IP Logged

              I hope the family appreciate it.

              So many kids just let the old people sit alone and care about themselves.

              I know as my mother was 95 and there is 6 kids and only  my sister and I cared about her.

              The resthadno time but believe me when she was dying the others sure came around as they knew there was something there to get.

              To make a long story short I am spending my money.

              If there is some left they will get it.

              As long as I can enjoy life I am going to.

              Sure not going to sit in rocking chair wasting away so kids can have it.

              My hubby and I worked for that money.

              I think they should keep some as you never know what is in store in life and you can't rely on family all the time.

              Some of you may think I am cold but been there a few times and am older myself

                picktowin's avatar - Lottery-034.jpg
                wisconsin
                United States
                Member #49379
                January 28, 2007
                2356 Posts
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                Posted: February 28, 2016, 10:37 pm - IP Logged

                Taxes why should they worry what they have to pay.

                They didn't have the money before so anything is better than nothing.

                Besides it wasn't theirs to begin with

                Grandma and Grandpa think twice.

                  Bondi Junction
                  Australia
                  Member #57242
                  December 24, 2007
                  1102 Posts
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                  Posted: February 28, 2016, 11:14 pm - IP Logged

                  Florida Lottery officials said a Largo woman was the winner of a $43 million jackpot, and she said she's not keeping a penny of it.

                  Ruby Sorah, 90, matched all six winnings numbers in the February 17 Florida Lotto drawing.

                  Officials said Sorah chose to receive her winnings in a one-time, lump-sum payment of $31,042,330.

                  Though she wouldn't go on camera, Sorah told local media that she and her husband, also 90 years old, were giving the whole jackpot away to family and they have no plans to change their lives at all.

                  Neighbors, who said the couple is very low-key, are thrilled for them.

                  "It's God-sent. It's heart-warming," said Rick O'Callaghan, whose brother owns a house across the street. "It's great. They're the quietest, nicest, most reserved people you ever saw in your life. He only comes out to get the mail. Still mows his own lawn. Real, real simple people, got a real, real simple life."

                  O'Callaghan said, if he won the lottery, he's not sure he'd be able to give it all away.

                  "[I would] pay off some of my bills. Maybe try and buy a house or something like that," he said.

                  Other neighbors said they might do the same thing as the Sorahs.

                  "I think if I were in their situation, I would seriously thinking about doing the same thing. So God bless them. That's just super," a neighbor said.

                  Ruby Sorah purchased the winning ticket at a Winn-Dixie grocery store on Park Boulevard in Seminole. The store will receive $100,000 in commission for selling the ticket.

                  News story photo(Click to display full-size in gallery)

                  Congratulations to the couple. They will be inundated with relatives visiting. The will also have to review security at their house, or move to try and restore some privacy.

                  State governments, that require winners to be publicly identified, really need to rethink that policy, before something dreadful happens.

                  We all get a lot out of lotteries!

                    noise-gate's avatar - images q=tbn:ANd9GcR91HDs4UJhjxO7cmeMQWZ5lB_FOcMLOGicau4V74R45tDgPWrr
                    Bay Area - California
                    United States
                    Member #136477
                    December 12, 2012
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                    Posted: February 29, 2016, 12:54 am - IP Logged

                    People can say anything they want to the cameras, it doesn't mean they will follow through. I'm writing my jackpot story right now, knowing it's going to make those lottery posters twist.

                    My thought exactly. So all this * time ( years perhaps) you have been reaching into your pocket, shelling out your own money hoping to win, and then come to the conclusion that it's best just giving the millions away? 

                    People who say it cannot be done should not interrupt those who are doing it- George Bernard Shaw.

                      Avatar

                      United States
                      Member #163996
                      February 15, 2015
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                      Posted: February 29, 2016, 4:38 am - IP Logged

                      People can say anything they want to the cameras, it doesn't mean they will follow through. I'm writing my jackpot story right now, knowing it's going to make those lottery posters twist.

                      Very good point.  Give the media disinformation and send them on a wild goose chase.  I'll have to keep that in mind when I win.....

                      LOL

                        CARBOB's avatar - FL LOTTERY_LOGO.png
                        ORLANDO, FLORIDA
                        United States
                        Member #4924
                        June 3, 2004
                        5896 Posts
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                        Posted: February 29, 2016, 4:40 am - IP Logged

                        Hello Aunt Ruby, forgot you lived in Largo. Call me!!

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                          Simpsonville
                          United States
                          Member #163189
                          January 22, 2015
                          673 Posts
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                          Posted: February 29, 2016, 6:19 am - IP Logged

                          Congratulations to the couple. They will be inundated with relatives visiting. The will also have to review security at their house, or move to try and restore some privacy.

                          State governments, that require winners to be publicly identified, really need to rethink that policy, before something dreadful happens.

                          Agreed, however you and I both know as other LP members that folks have been robbed, killed over lottery winnings.

                            Bondi Junction
                            Australia
                            Member #57242
                            December 24, 2007
                            1102 Posts
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                            Posted: February 29, 2016, 7:24 am - IP Logged

                            Agreed, however you and I both know as other LP members that folks have been robbed, killed over lottery winnings.

                            If the delightful couple were British, they could remain anonymous and the prize money would be tax-free.

                            We all get a lot out of lotteries!

                              OneTrickpony's avatar - thought

                              United States
                              Member #167657
                              July 25, 2015
                              70 Posts
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                              Posted: February 29, 2016, 7:59 am - IP Logged

                              This is a great story and it's nice to hear how many people think kindly of them. I get it. At 90 the house is probably paid, debts are gone and they've settled into this comfortable routine. Why change what you're happy with?

                              However, even though it is a lot of money that the family never had before, why-o-why would they give away so much in taxes for no good reason? My estimate puts them throwing away about $8.5M assuming each spouse is allotted ~$5.4M before the gift tax kicks in. 

                              Maybe after they speak with an accountant or tax attorney, they'll change their minds about doing it this way. Should have either given the ticket to the family for them to collect, or included them in claiming the ticket, then put their share in a trust and have it be divided out without additional tax burdens. $8 million dollars down the drain if done the way the article is stating. Hope it was just poor reporting and not true.

                              Yes, I hope they consult with a tax attorney and CPA before making a final decision.  I think giving people who are not used to having millions of dollars in one fell swoop could be detrimental.  But doling it out over many years is not only prudent, but a healthy legacy.

                              I myself have thought that if I ever won a huge jackpot and I couldn't keep my identity a secret, I would announce that I was giving all the money to charity.  That would hopefully deter some of the bombardment from flim flam artist, law suits and long-lost relatives. 

                              Say I won $100 million.  They would chop $25 million in Federal taxes off the top, so I would divide the rest to several charities.  But, what people tend to forget is that I would only be paying taxes on the $25 million held by the IRS after all is said and done.  So $25 million taxed at 39.6% will be $9,900,000 in taxes and I will get back $15,100,000 (or there about).  I would still be wealthy beyond my wildest dreams, and perhaps on the Board of these charities to keep me busy and useful.  Just my thought.