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.
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Lucky family members.
She looks absolutely fabulous!
90!
She looks like a nice lady too. They probably were happy with their lives so far and thought
why change now....give it to the younger people to enjoy.
Why even claim the Winnings if you're giving it away to Family? Let the Family Claim it and Avoid the Gift Tax!
was my 1st thoughts. maybe they dont plan on giving it straight away, but over time and make sure everyone gets a cut. I mean gove it to one or 2 people and you rely on them sharing it. theyre in no hurry nice iea, but i would keep a little something for my old age
Maybe they are just pi$$ed off they didn't win it in their twenties or even sixties. I would be pi$$ed off too, for crying out loud.
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.
Ruby, Congratulations on winning and living that long. 90 years.
Here I am considering taking the 30-year annuity and you give me hope that I can live that long.
Here is a common quote among senior citizens, "I did not expect to live this long."
Congratulations Ruby
Aw, that is so great! It's nice when down to earth people win.
Congratulations to the family members. I hope I win big before I am 90? Or else I would be doing the same thing she did.
It's a doggone shame the older Ms. didn't have some more years to enjoy this money. She did the right thing, and you and I are on the same key as to what we'd do with it if we became her age by that time. (and the way it looks, I hope just to live to 90.)
She has no needs now, whatsoever. It'll all be taken care of for her, and her husband.
NICE HIT GRANNY!
Yes, isn't that the doggone truth?
Yes, My Pie Master, I agree 100%.
Music* figures they'll end up with 18 million.
I just hope I get 1/18 as lucky as them, some day, after taxes.
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.
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 !!!!
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.
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.
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.
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.
Ok, not really serious about that last bit but you never know.
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 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
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.
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.
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?
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.....
Hello Aunt Ruby, forgot you lived in Largo. Call me!!
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.
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.
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?
LottoLucy, Thank You for your clarification and help. I will depend on my CPA when I win.
I remember! LOL
I only hope those real relatives appreciate, what she and her husband are doing!!
Congratulations to the lucky couple and their family.
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.
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).
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.
Yea, this is where a trust would have worked better for them. Put all the family members in the trust.
"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.
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.
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.
"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.
I love the fact that she was still playing at 90. Gives me hope. Congrats to her.
It doesn't look like they consulted with a lawyer.
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.