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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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schmuckatelly's avatar - half planet.jpg
Jacksonville, Florida
United States
Member #140364
March 17, 2013
195 Posts
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Posted: February 29, 2016, 8:20 am - IP Logged

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

Cousin Bob? I remember when we used to jump of the trampoline and into the pool at Aunt Ruby's house! 

 

Aunt Ruby, did you get my Christmas card this past Christmas?

 

LOL

Jan Powerball pool contributions -$194 + $38 win = - $156 Net;  Feb -$320 TBD

    music*'s avatar - nw bookeep.jpg
    Happy California
    United States
    Member #157856
    August 2, 2014
    1506 Posts
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    Posted: February 29, 2016, 9:06 am - IP Logged

    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.

     LottoLucy, Thank You for your clarification and help. I will depend on my CPA when I win.

     I've been rich and I've been poor. Believe me, rich is better. 

     Attributed to Joe E. Lewis and others

      CARBOB's avatar - FL LOTTERY_LOGO.png
      ORLANDO, FLORIDA
      United States
      Member #4924
      June 3, 2004
      5893 Posts
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      Posted: February 29, 2016, 9:16 am - IP Logged

      Cousin Bob? I remember when we used to jump of the trampoline and into the pool at Aunt Ruby's house! 

       

      Aunt Ruby, did you get my Christmas card this past Christmas?

       

      LOL

      LOL

      I remember! LOL

      I only hope those real relatives appreciate, what she and her husband are doing!!

        TheMeatman2005's avatar - lightening
        Brooklyn, NY
        United States
        Member #169723
        October 29, 2015
        877 Posts
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        Posted: February 29, 2016, 9:50 am - IP Logged

        Congratulations to the lucky couple and their family.

        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

          Gleno's avatar - Lottery-001.jpg
          New Jersey
          United States
          Member #80354
          September 25, 2009
          705 Posts
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          Posted: February 29, 2016, 11:17 am - IP Logged

          02/29/16     11:17 AM

          Smart Senior to give her Jackpot to her family while she and her husband are both alive. Hopefully the family will handle it wisely.

          Wink


            United States
            Member #108380
            March 25, 2011
            505 Posts
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            Posted: February 29, 2016, 4:08 pm - IP Logged

            02/29/16     11:17 AM

            Smart Senior to give her Jackpot to her family while she and her husband are both alive. Hopefully the family will handle it wisely.

            Wink

            it's really just a smokescreen to keep strangers from bothering them. smart move. probably are giving "most of it away" but not all of it. sure they are keeping a few bands of hundreds sealed in the wall of their house for a rainy day. this saying you are giving it all away ploy has been used before by people not wanting attention drawn to them and the constant barrage of requests for handouts which people lick their chops over the fact that they are old and easy prey. only drawback is if they need cash for some emergency (one never knows) and the most trusted relative that they give the most to refuse them. (unlikely but possible).

              BuyLow's avatar - palm tree.jpg
              Florida
              United States
              Member #61435
              May 22, 2008
              906 Posts
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              Posted: February 29, 2016, 4:49 pm - IP Logged

              She didn't say when she was giving it away.  Maybe she's going to put it in a trust to generate income for her family members and then the trust will pass to them once they pass away.

                Avatar
                Maryland
                United States
                Member #162434
                January 2, 2015
                887 Posts
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                Posted: February 29, 2016, 5:21 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.

                Yea, this is where a trust would have worked better for them.  Put all the family members in the trust.

                  Avatar
                  NY
                  United States
                  Member #23835
                  October 16, 2005
                  3474 Posts
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                  Posted: February 29, 2016, 5:24 pm - IP Logged

                  "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?  "

                  Maybe all this time they've been buying tickets hoping they'll win so that they could give a lot of money to their kids, or charity, or whatever.

                  "Yes, I hope they consult with a tax attorney and CPA before making a final decision."

                  That ship has already sailed. They're already 90, so it doesn't really make a big difference whether they give it away today or it goes to their heirs when they die. There's a chance that they've got a pre-existing agreement that the IRS will accept, but there's a good chance that the IRS is going to collect either estate taxes or gift taxes at some point in the future.

                  Nothing wrong with people that old playing the lottery, but it's a really good idea to make plans ahead of time. If they had (or have) an agreement about sharing or giving the tickets to their kids, then the money could go to the kids without incurring gift taxes, and the kids could give the parents annual gifts that are exempt from gift taxes. If the parents need an unusually large amount of money in a particular year the kids could still give it to them by using their lifetime exemption.

                    Teddi's avatar - Lottery-008.jpg

                    United States
                    Member #142499
                    May 13, 2013
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                    Posted: February 29, 2016, 6:47 pm - IP Logged

                    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.

                    I saw that someone did the calc and showed after taxes they would net $32M. which is what I based my own calculations on. But that is incorrect. After the entire 39.6%, they'd end up somewhere around the $26 million mark. That's a big difference. So take away their lifetime exclusion and we're looking at roughly $15 million they'd have to pay gift taxes on. Aren't gift taxes at 40%? If so, then they're throwing away $6 million. Still a big chunk of cash. 

                    But you're right about those elderly people being crazy like a fox. The ones that still have all their marbles are usually able to outmaneuver the geniuses of the younger generations. I really hope that's true in this case. 

                    My grandfather was the best at never telling a lie, but phrasing his words in a way he knew we'd interpret differently from the way he meant it.

                    Here's hoping this couple is the same way. They might very well be giving it all to the family, but maybe it'll be dispensed via a trust, over time, so no unnecessary taxes are levied on what's given out.

                      Teddi's avatar - Lottery-008.jpg

                      United States
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                      May 13, 2013
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                      Posted: February 29, 2016, 7:00 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.

                      Taxes why should they worry what they have to pay They didn't have the money before so anything is better than nothing.

                      Because it's money. I have to say, I've never understood when people say "it's more than they had before". Yes. But it's money. I know that psychologically people are more willing to spend money they are given and not earned, but again, it's still money. 

                      They're already going to give the government millions in taxes, why should they give millions more unnecessarily? Maybe instead of the money lasting 3 generations, it lasts 5. Or maybe that extra $6 million could be given to a children's hospital or cancer research lab. If you're going to give money away, make it a worthwhile cause. Why bother giving Uncle Sam more than the 39.6% just because you have more than before. I don't get that argument.

                        whiteballz's avatar - Lottery-015.jpg
                        Nutley, New Jersey
                        United States
                        Member #131058
                        August 1, 2012
                        875 Posts
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                        Posted: February 29, 2016, 7:57 pm - IP Logged

                        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.

                        "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). "

                        Wait, are you saying if someone won a $100 million lump sum from the lottery, only $25 million is considered taxable income by the IRS? I'm not a tax expert but I don't think that's right. The IRS will take 39.6% from $100 million not 39.6% from $25 million.

                        If someone thought they are only going to pay $9,900,000 in federal income tax after winning $100 million in the lottery, they are in for a BIG surprise.

                        .

                          zephbe's avatar - animal butterfly.jpg
                          South Carolina
                          United States
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                          July 15, 2009
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                          Posted: February 29, 2016, 7:58 pm - IP Logged

                          I love the fact that she was still playing at 90.  Gives me hope.  Congrats to her. Smile

                          Every champion was once a contender who refused to give up.-Rocky Balboa

                          “Don’t let someone who gave up on their dreams talk you out of going after yours.” – Zig Ziglar

                            Avatar
                            Kentucky
                            United States
                            Member #32652
                            February 14, 2006
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                            Posted: February 29, 2016, 8:05 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!

                            It doesn't look like they consulted with a lawyer.

                              LottoLucy's avatar - hereslucy header.jpg

                              United States
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                              August 14, 2012
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                              Posted: February 29, 2016, 8:22 pm - IP Logged

                              I saw that someone did the calc and showed after taxes they would net $32M. which is what I based my own calculations on. But that is incorrect. After the entire 39.6%, they'd end up somewhere around the $26 million mark. That's a big difference. So take away their lifetime exclusion and we're looking at roughly $15 million they'd have to pay gift taxes on. Aren't gift taxes at 40%? If so, then they're throwing away $6 million. Still a big chunk of cash. 

                              But you're right about those elderly people being crazy like a fox. The ones that still have all their marbles are usually able to outmaneuver the geniuses of the younger generations. I really hope that's true in this case. 

                              My grandfather was the best at never telling a lie, but phrasing his words in a way he knew we'd interpret differently from the way he meant it.

                              Here's hoping this couple is the same way. They might very well be giving it all to the family, but maybe it'll be dispensed via a trust, over time, so no unnecessary taxes are levied on what's given out.

                              I think that $32 million figure mentioned was just someone rounding up the gross cash value of the $43 million dollar annuity jackpot.  They actually got $31,042,330.67 cash before taxes.

                              The jackpot winner has given me a gift: a new research project learning about Dynasty Trusts.  I'd love to be able to give whatever I haven't spent to future generations while giving the IRS as little as legally possible.

                              Lotto Lucy