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NJ family of 8 claims $429.6 million Powerball lottery jackpot

Topic closed. 117 replies. Last post 8 months ago by OldSchoolPa.

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Florida
United States
Member #171219
January 3, 2016
110 Posts
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Posted: May 13, 2016, 10:39 pm - IP Logged

Very happy for this family. Now their vacations will go from "pretty good" to "absolute kick-a__"!

    rock_nc's avatar - Lottery-017.jpg
    small town USA
    United States
    Member #2481
    October 8, 2003
    224 Posts
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    Posted: May 13, 2016, 11:12 pm - IP Logged

    This is what intrigues me.  My question is, who dreamt the numbers? Which family member had the dream. They quoted as saying, "THEY came to US through a Dream"!Congrats to all of you for hitting the big time! Keep on working? Not me! I would quit in a heartbeat! Get out and travel and see the good ole USA!

      Bondi Junction
      Australia
      Member #57242
      December 24, 2007
      1102 Posts
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      Posted: May 14, 2016, 12:04 am - IP Logged

      Includes video report

      By Todd Northrop

      A New Jersey woman and her seven adult children have stepped forward to claim a $429.6 million Powerball jackpot.

      Eight members of the Smith family announced that they had the sole winning ticket purchased in Trenton for last Saturday's drawing. They plan to tithe 10 percent of the money to their church.

      The family was guarded about their employment, to protect their privacy.  Valerie Marie Arthur, the eldest daughter and a retired prison administrator, spoke for the group. (See press conference raw footage below.)

      The family matriarch, Pearlie Mae Smith, spent $6 for two tickets for drawings held last Wednesday and Saturday. They have hired attorneys to help them with the money and will take a trip to the usual family spot, though they wouldn't say where that was.

      "We had a divine intervention give us the numbers, that's the only way you can explain that, how the numbers were chosen," Val Arthur said.

      The chosen numbers came to the ticket-buyer in a dream, although the family declined to say whose dream it was.

      Lottery officials say the family chose the lump sum cash payment over the annuity. So the $6 investment will yield $284 million in cash, before taxes.

      "They spent $6 to win $284 million. That's a pretty good investment," Carole Hedinger, the New Jersey Lottery's executive director, said earlier this week.

      Only one ticket matched all six Powerball numbers in Saturday night's drawing. The winning numbers were 5, 25, 26, 44, and 66, with Powerball number 9.

      The family claimed the ticket under the name, "The Smith Family Lottery Group".  The group members include:

      1. Pearlie Mae Smith (mom) of Trenton
      2. Valerie Marie Arthur of Trenton
      3. Steven Elliot Smith of Trenton
      4. Jacqueline Sessoms of Trenton
      5. Marsha-Ann Rebecca Smith of Trenton
      6. Tracy Angela Smith of Newark
      7. Katherine Nicole Nunnally of Newark
      8. Rene Bethina Smith of Trenton

      "We are thrilled to meet the fortunate winners and I am extremely pleased that they heeded the recommendation to obtain professional assistance and advice to navigate this life-changing event," Hedinger said. The family also consulted with a life coach and met with previous jackpot winners to learn from their experiences. 

      "Friday the 13th is now a blessed day," Valerie said.

      Mrs. Smith purchased the ticket from the 7-Eleven store, 750 Chambers Street, Trenton in Mercer County. She is a pastor in a church in Trenton and rarely gambles. She said that these numbers popped into her head and felt compelled to listen to the intuition. She purchased one game board for the Wednesday, May 4 drawing and one board for the Saturday, May 7 drawing, which was the winning ticket.

      The retailer gets a $30,000 bonus for selling the winning ticket.

      Most of the convenience store's customers are locals who come in a few times a week to buy coffee or a soda and maybe a sandwich or snack. That led area residents to speculate that the person who holds the winning ticket may be living among them.

      The ticket is the largest single jackpot winning ticket sold in New Jersey and the sixth-largest in Powerball history.

      Powerball is played in 44 states plus Washington, D.C., Puerto Rico, and the U.S. Virgin Islands.

      The odds of winning are one in 292.2 million.

      RAW VIDEO: Watch the press conference

      Editor: Sorry for the poor audio volume; please turn up the volume on your speakers. The NJ Lottery did not have a very good audio feed.

      2ItQP7rRfcsNJ family of 8 claims $429.6 million Powerball lottery jackpotA New Jersey woman and her seven adult children have stepped forward to claim a $429.6 million Powerball jackpot.T22M51Shttps://img.youtube.com/vi/2ItQP7rRfcs/2.jpghttps://youtu.be/2ItQP7rRfcs2016-05-13T16:49:00-05:00

      If a lottery is holding a press conference for a lottery winner, they should at least ensure that the questions can be heard!

      We all get a lot out of lotteries!

        savagegoose's avatar - ProfilePho
        adelaide sa
        Australia
        Member #37136
        April 11, 2006
        3316 Posts
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        Posted: May 14, 2016, 12:35 am - IP Logged

        the splitting the prize at claiming is smart. there will  be no complications with gift taxes.  as to divine intervention, what  devine being  gave them the numbers?  claiming on fri 13th gives me a clue. sounds like these people are all set up for a no problesm win and we shouldnt hear form them again... I look forward to hearing more.

        2014 = -1016; 2015= -1409; 2016  = -1171; 2017 = ?  TOT =  -3596

        keno historic = -2291 ; 2015= -603; 2016= -424; 2017 = ? TOT = - 3318

          golfer1960's avatar - Lottery-003.jpg
          Eatontown, NJ
          United States
          Member #119670
          November 29, 2011
          741 Posts
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          Posted: May 14, 2016, 1:11 am - IP Logged

          Always wondered: The back of the lottery ticket clearly states "One Name Only" to be written in. I assumed (if/when I hit the big one) that I would need to create a Trust or LLC in order to bring in the whole family into winner's circle (if family is reading, this in no way constitutes a promise of sharing all of the winnings!).

           

          This brings up the question: Would the lottery accept a newly created entity (created after the winning draw) as a winner? How about the IRS?? This article brought up the questions in my mind as 8 family members share the jackpot. I'm sure that any capable attorney has a work-around these "problems" but anybody have any thoughts on the legal side of winning and wanting to share with family??

          prm199, i am with you on this one. I believe the Smiths are making a big mistake and violating the "gift tax" rule.

          Don't they have to prove that this was a "partnership" before they are allowed to split the prize equally?

          Aren't they going to be subject to the gift tax rule?

          It's gonna be hard to prove to the IRS that they had a partnership and that everyone was contributing to play the lottery when the Mom says "she never gambles playing the lottery". However, they won't say who dreamt the numbers.

          It doesn't sound like this was a lottery partnership. I see tax problems down the road.

          Mom said she played $6.00, so does that mean everyone (8 people) contributed $0.75 to her dream?

          She had a ticket for two drawings so it sounds like she bought 3 lines ($6.00) times two drawings ($12.00). I think she spent $12.00.

          If 8 people had contributed just $1.00 each that would have been $8.00 not $12.00.

          I don't believe anyone contributed money towards this jackpot but I admire her for sharing it with her entire family.

          Will each person receive an equal share? The article doesn't mention it.

          Imagine the gift tax she would have to pay if the IRS deems that she owes one? Millions in additional taxes!

          Anyone have an idea if she'll owe gift taxes on this and how much?

            Avatar
            Texas
            United States
            Member #82092
            November 5, 2009
            70 Posts
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            Posted: May 14, 2016, 2:41 am - IP Logged

            Lottery personnel said in interview it was a one line ticket, multiplied. So, $3 for Wednesday and Saturday

              zephbe's avatar - animal butterfly.jpg
              South Carolina
              United States
              Member #77167
              July 15, 2009
              569 Posts
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              Posted: May 14, 2016, 3:14 am - IP Logged

              Congratulations.  Enjoy. 

              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

                zephbe's avatar - animal butterfly.jpg
                South Carolina
                United States
                Member #77167
                July 15, 2009
                569 Posts
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                Posted: May 14, 2016, 3:19 am - IP Logged

                Always wondered: The back of the lottery ticket clearly states "One Name Only" to be written in. I assumed (if/when I hit the big one) that I would need to create a Trust or LLC in order to bring in the whole family into winner's circle (if family is reading, this in no way constitutes a promise of sharing all of the winnings!).

                 

                This brings up the question: Would the lottery accept a newly created entity (created after the winning draw) as a winner? How about the IRS?? This article brought up the questions in my mind as 8 family members share the jackpot. I'm sure that any capable attorney has a work-around these "problems" but anybody have any thoughts on the legal side of winning and wanting to share with family??

                Decide how much you want to share.  Get a financial advisor and attorney before you claim the winnings.

                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

                  zephbe's avatar - animal butterfly.jpg
                  South Carolina
                  United States
                  Member #77167
                  July 15, 2009
                  569 Posts
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                  Posted: May 14, 2016, 3:23 am - IP Logged

                  This is what intrigues me.  My question is, who dreamt the numbers? Which family member had the dream. They quoted as saying, "THEY came to US through a Dream"!Congrats to all of you for hitting the big time! Keep on working? Not me! I would quit in a heartbeat! Get out and travel and see the good ole USA!

                  The mother bought the ticket.  Another article I read said she is a minister.

                  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

                    zephbe's avatar - animal butterfly.jpg
                    South Carolina
                    United States
                    Member #77167
                    July 15, 2009
                    569 Posts
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                    Posted: May 14, 2016, 3:27 am - IP Logged

                    prm199, i am with you on this one. I believe the Smiths are making a big mistake and violating the "gift tax" rule.

                    Don't they have to prove that this was a "partnership" before they are allowed to split the prize equally?

                    Aren't they going to be subject to the gift tax rule?

                    It's gonna be hard to prove to the IRS that they had a partnership and that everyone was contributing to play the lottery when the Mom says "she never gambles playing the lottery". However, they won't say who dreamt the numbers.

                    It doesn't sound like this was a lottery partnership. I see tax problems down the road.

                    Mom said she played $6.00, so does that mean everyone (8 people) contributed $0.75 to her dream?

                    She had a ticket for two drawings so it sounds like she bought 3 lines ($6.00) times two drawings ($12.00). I think she spent $12.00.

                    If 8 people had contributed just $1.00 each that would have been $8.00 not $12.00.

                    I don't believe anyone contributed money towards this jackpot but I admire her for sharing it with her entire family.

                    Will each person receive an equal share? The article doesn't mention it.

                    Imagine the gift tax she would have to pay if the IRS deems that she owes one? Millions in additional taxes!

                    Anyone have an idea if she'll owe gift taxes on this and how much?

                    This isn't the first time winnings were shared with family or friends.  That's what lawyers  and financial advisors are for.

                    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

                      MillionsWanted's avatar - 24Qa6LT

                      Norway
                      Member #9517
                      December 10, 2004
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                      Posted: May 14, 2016, 5:39 am - IP Logged

                      "divine intervention"?

                      Yeah sure, riiight... Roll Eyes

                        Slick Nick's avatar - Lottery-035.jpg
                        Rochester
                        United States
                        Member #103282
                        January 1, 2011
                        606 Posts
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                        Posted: May 14, 2016, 7:00 am - IP Logged

                        I hope they get sound financial advice and "enjoy" it to the utmost! Sun Smiley

                        Money is a terrible master, but a great servant...Smile

                          Avatar

                          United States
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                          January 4, 2016
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                          Posted: May 14, 2016, 8:23 am - IP Logged

                          prm199, i am with you on this one. I believe the Smiths are making a big mistake and violating the "gift tax" rule.

                          Don't they have to prove that this was a "partnership" before they are allowed to split the prize equally?

                          Aren't they going to be subject to the gift tax rule?

                          It's gonna be hard to prove to the IRS that they had a partnership and that everyone was contributing to play the lottery when the Mom says "she never gambles playing the lottery". However, they won't say who dreamt the numbers.

                          It doesn't sound like this was a lottery partnership. I see tax problems down the road.

                          Mom said she played $6.00, so does that mean everyone (8 people) contributed $0.75 to her dream?

                          She had a ticket for two drawings so it sounds like she bought 3 lines ($6.00) times two drawings ($12.00). I think she spent $12.00.

                          If 8 people had contributed just $1.00 each that would have been $8.00 not $12.00.

                          I don't believe anyone contributed money towards this jackpot but I admire her for sharing it with her entire family.

                          Will each person receive an equal share? The article doesn't mention it.

                          Imagine the gift tax she would have to pay if the IRS deems that she owes one? Millions in additional taxes!

                          Anyone have an idea if she'll owe gift taxes on this and how much?

                          Someone feel free to correct me if I'm wrong, but they won't owe gift taxes, only income tax. In fact the IRS has a form specifically for the purpose of splitting gambling winnings that is used in these situations (form 5754). Below is some info I pulled from finance.zacks.com.

                          The Internal Revenue Service considers all lottery winnings to be taxable income, even if you do not receive an income document at the end of the year that reports the amount you’ve won. If you’ve split your prize with another person or group of people, you need to take steps to ensure any reportable amounts are allocated correctly between yourself and the other winners. In most cases, you need to handle these steps prior to cashing in on your prize.

                          State Lottery Regulations
                          Each state lottery commission creates its own rules concerning group or multiple lottery prize winners. The IRS sets mandatory withholding tax rules for prize amounts, but states decide the types of games and winning amounts that are applied to split claims. Before you cash in your winning ticket, download a winner’s handbook from the state lottery commission’s website to review your options.


                          Claims Department
                          The state lottery commission processes requests for multiple winner claims. Many states, such as California, Pennsylvania and Kansas require that split claims, be processed before the winning lottery prize is paid out. Other states, such as Oregon, require one claimant to receive the payout, then file a request with the lottery commission to divide the tax liability among the other winners. In either case the lottery commission gathers information about the winners and the amount of prize each person should receive before payments are arranged. The commission also uses claimant information to prepare the correct tax reporting information for each winner. Because each state lottery commission operates individually and may have varying rules, it is important to review the claim instructions for multi-winner claims prior to requesting a payout.


                          IRS Form 5754
                          When lottery prize splits are allowed by the state and a proper claim is submitted with the claims department, the lottery commission asks you to complete IRS Form 5754. This form must contain information about all the winners and the amount of prize each person received. This form is not turned into the IRS; the lottery commission uses it to prepare a W2-G form for each winner, listing the prize each person receives. W2-G forms are sent to winners by the end of January each year, and the IRS expects each person to report the amount of his prize as shown on the W2-G form.


                          Unreported Split
                          In general the IRS only requires you to report income that is yours. If lottery winnings you receive are split with other winners and you are the only person who receives a W2-G form, which shows the entire taxable portion of the lottery prize, the IRS expects you to report the whole prize on your return. If this happens and the winnings were really split between you and other winners, you have the option of reporting only your portion. If you do this, you also need to attach a statement to your return explaining that you only received a portion of the prize. On your statement, you need to list the amount you received and provide information about the other winners who received part of the winnings as well as the amounts they received. The IRS then checks the returns of the other people to see if they also claimed their portions. If the other winners do not report their prize, the IRS may require you to claim the whole amount, as shown on the W2-G form you receive.

                            JoeBigLotto's avatar - Lottery-049.jpg
                            melbourne , florida
                            United States
                            Member #121140
                            January 3, 2012
                            188 Posts
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                            Posted: May 14, 2016, 8:29 am - IP Logged

                            I don't understand why you all are so so confuse. First and foremost if co workers can split a jackpot with no problem a family can split a jackpot too if they all are old enough to gamble . Number two IRS is not worried about tax implications IRS has taken there share of the money already so they are winners too. About the eight sharing that means IRS will actually make more in tax when all eight starts spending when was the last time you saw a black family of eight spending on one direction so this actually benefits the economy and IRS more like eight houses eight cars eight donkeys maybe I start playing 888 lol. Another thing about why they spent only $6 by eight people I think you need to go back to school and learn basic maths you see this family is smart not your typical black family there is a posibilty they could have put together a pool of $500 but decided to play only $6 per draw so this way they stay in the game longer I do the same thing I play my constant $3 and I play my quick pick $3 so I spend $6 too slowly because powerball and mega million is a long term strategy game not a one time play and win. I missed a $300,000 win on powerball on four numbers and pb with power play because I was waiting for $80,000,000 jackpot to grow and I regret this everyday. So just because they spent $6 doesn't mean that is all they have on there lottery budget and beside give them credit when was the last time you say a black family share anything peacefully if you want my opinion I think its because they have one son if I where him I get away from all those crazy females lol . I do have five sisters and am the only son and I could not wait to get the hell out don't you see his body language lol

                              JoeBigLotto's avatar - Lottery-049.jpg
                              melbourne , florida
                              United States
                              Member #121140
                              January 3, 2012
                              188 Posts
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                              Posted: May 14, 2016, 8:32 am - IP Logged

                              prm199, i am with you on this one. I believe the Smiths are making a big mistake and violating the "gift tax" rule.

                              Don't they have to prove that this was a "partnership" before they are allowed to split the prize equally?

                              Aren't they going to be subject to the gift tax rule?

                              It's gonna be hard to prove to the IRS that they had a partnership and that everyone was contributing to play the lottery when the Mom says "she never gambles playing the lottery". However, they won't say who dreamt the numbers.

                              It doesn't sound like this was a lottery partnership. I see tax problems down the road.

                              Mom said she played $6.00, so does that mean everyone (8 people) contributed $0.75 to her dream?

                              She had a ticket for two drawings so it sounds like she bought 3 lines ($6.00) times two drawings ($12.00). I think she spent $12.00.

                              If 8 people had contributed just $1.00 each that would have been $8.00 not $12.00.

                              I don't believe anyone contributed money towards this jackpot but I admire her for sharing it with her entire family.

                              Will each person receive an equal share? The article doesn't mention it.

                              Imagine the gift tax she would have to pay if the IRS deems that she owes one? Millions in additional taxes!

                              Anyone have an idea if she'll owe gift taxes on this and how much?

                              My above comment is in respond to golfer1960 . At least they did better than the other crazy new jersey winner Pedro quezada who couldn't give his ten year girlfriend inez sanchez a KitKat bar break. He was so dumb he sent all his money to the Dominican republic go figure :)  Bash I wonder what other trouble he is up to now apart from getting fat from donuts.