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You just won a huge lottery jackpot! Now what?

Topic closed. 137 replies. Last post 3 years ago by MsBee18.

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United States
Member #125171
March 26, 2012
297 Posts
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I've...A....Plan !!! 

I'm 100% Ready To Win The Mega Millions ! Party

Ready To Win ....

    CDanaT's avatar - Nolz june15.jpg
    Central TN
    United States
    Member #121187
    January 4, 2012
    6073 Posts
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    Yeah I agree I want to share the pot of gold with many family and a few friends. Will I invest sure but I don't need to take 600 million post tax and turn it into 5 billion before I turn 60.

    The Mrs has a pretty good sized family, some close to retirement, so we want to do this right for them(roughly $8-10M  ea). My side is alot less but still make sure everyone is treated fairly/equally(same amount each). We have about 8 close friends we want to set up for early retirement($5M  ea.)....Various chosen charities ... Wounded Warriors is important to both of us. I like the idea of those "trac vehicles" they make for folks to get around on. Last I knew they were about $17K apiece..We want to start a charity for LEO's injured or killed in the line of duty... Just temporary thoughts for now.

    Integrity: There is no substitute.

    "If some among you fear taking a stand because you are afraid of reprisals . . . recognize that you are just feeding the crocodile hoping he'll eat you last."

      CDanaT's avatar - Nolz june15.jpg
      Central TN
      United States
      Member #121187
      January 4, 2012
      6073 Posts
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      I was all for dividing it up between my loved ones, but since I found out I'd have to pay an additional 40% gift tax above $11M, then screw 'em, they can divide the $11M! I don't like them THAT much! LOL

      Green laugh You can include them in the Trust ya know

      Integrity: There is no substitute.

      "If some among you fear taking a stand because you are afraid of reprisals . . . recognize that you are just feeding the crocodile hoping he'll eat you last."

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        Mt Sterling, IL
        United States
        Member #192745
        October 8, 2018
        199 Posts
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        Green laugh You can include them in the Trust ya know

        Shhh! Don't tell them that! ;)

          BuyLow's avatar - fd725949c52faf3bef0a9e377747408d -iphone-wallpaper-palm-trees.jpg
          Florida
          United States
          Member #61433
          May 22, 2008
          1228 Posts
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          The Mrs has a pretty good sized family, some close to retirement, so we want to do this right for them(roughly $8-10M  ea). My side is alot less but still make sure everyone is treated fairly/equally(same amount each). We have about 8 close friends we want to set up for early retirement($5M  ea.)....Various chosen charities ... Wounded Warriors is important to both of us. I like the idea of those "trac vehicles" they make for folks to get around on. Last I knew they were about $17K apiece..We want to start a charity for LEO's injured or killed in the line of duty... Just temporary thoughts for now.

          How will you evade gift taxes with this level of giving?

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            Mt Sterling, IL
            United States
            Member #192745
            October 8, 2018
            199 Posts
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            How will you evade gift taxes with this level of giving?

            Now, now... Let's not use the word "evade" and "taxes" in the same sentence... Oh wait, I just did it again!

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              Austin
              United States
              Member #191202
              July 21, 2018
              102 Posts
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              No plan, just waiting for the stars and numbers to line up! Everyone has provided so much advice.  This has been an interesting topic with the Mega Millions

                BuyLow's avatar - fd725949c52faf3bef0a9e377747408d -iphone-wallpaper-palm-trees.jpg
                Florida
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                Member #61433
                May 22, 2008
                1228 Posts
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                I've...A....Plan !!! 

                I'm 100% Ready To Win The Mega Millions ! Party

                Do share!

                  CDanaT's avatar - Nolz june15.jpg
                  Central TN
                  United States
                  Member #121187
                  January 4, 2012
                  6073 Posts
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                  How will you evade gift taxes with this level of giving?

                  there is 2 ways of conducting that,if my understanding is correct.... put them in the trust up front for the day you collect... yeah yeah, I know, the IRS wants you to have a pre agreement on the lottery before you win..... With most of these folks, we have already had that conversation and percentage agreement. With the few I don't, we are going to offer them the equivalent of an after gift tax settlement and then pay the gift tax on that figure.Those are the lower $$... Unless that is considered too gray of an area.. then we will do it the other way

                  https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes#1

                  Integrity: There is no substitute.

                  "If some among you fear taking a stand because you are afraid of reprisals . . . recognize that you are just feeding the crocodile hoping he'll eat you last."

                    BuyLow's avatar - fd725949c52faf3bef0a9e377747408d -iphone-wallpaper-palm-trees.jpg
                    Florida
                    United States
                    Member #61433
                    May 22, 2008
                    1228 Posts
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                    there is 2 ways of conducting that,if my understanding is correct.... put them in the trust up front for the day you collect... yeah yeah, I know, the IRS wants you to have a pre agreement on the lottery before you win..... With most of these folks, we have already had that conversation and percentage agreement. With the few I don't, we are going to offer them the equivalent of an after gift tax settlement and then pay the gift tax on that figure.Those are the lower $$... Unless that is considered too gray of an area.. then we will do it the other way

                    https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes#1

                    Thumbs Up At this level you can just pay the gift tax and be done with it if need be,  your level of giving still makes me quiver.  Green laugh

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                      Mt Sterling, IL
                      United States
                      Member #192745
                      October 8, 2018
                      199 Posts
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                      Thumbs Up At this level you can just pay the gift tax and be done with it if need be,  your level of giving still makes me quiver.  Green laugh

                      Man, I'll tell ya... The thought of paying taxes to give away money that I already paid taxes on makes me quiver, but not in any good way! lol

                        CDanaT's avatar - Nolz june15.jpg
                        Central TN
                        United States
                        Member #121187
                        January 4, 2012
                        6073 Posts
                        Offline

                        I believe the 2018 gift tax rate is the same as the top income at 37%, correct ?

                        Integrity: There is no substitute.

                        "If some among you fear taking a stand because you are afraid of reprisals . . . recognize that you are just feeding the crocodile hoping he'll eat you last."

                          CDanaT's avatar - Nolz june15.jpg
                          Central TN
                          United States
                          Member #121187
                          January 4, 2012
                          6073 Posts
                          Offline

                          Thumbs Up At this level you can just pay the gift tax and be done with it if need be,  your level of giving still makes me quiver.  Green laugh

                          lol..... Just remember, if you include them in your trust at the beginning, that 24% that is initially taken out is also part of their share, the rest they will be responsible for

                          Integrity: There is no substitute.

                          "If some among you fear taking a stand because you are afraid of reprisals . . . recognize that you are just feeding the crocodile hoping he'll eat you last."

                            Avatar
                            Mt Sterling, IL
                            United States
                            Member #192745
                            October 8, 2018
                            199 Posts
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                            I believe the 2018 gift tax rate is the same as the top income at 37%, correct ?

                            I'm not sure, the whole "gift tax thing" has always befuddled me. I don't understand the logic or fairness behind it, except that the Feds want their "estate tax" one way or another. I just don't understand why it is that if I earn money, pay my taxes on that money, then I wish to give it away: why am I being taxed again on it, why doesn't the recipient pay the tax? Or, worse, do I pay the gift tax and THEN the recipient has to pay income tax on it? My head would explode if that is the case.

                              CDanaT's avatar - Nolz june15.jpg
                              Central TN
                              United States
                              Member #121187
                              January 4, 2012
                              6073 Posts
                              Offline

                              I'm not sure, the whole "gift tax thing" has always befuddled me. I don't understand the logic or fairness behind it, except that the Feds want their "estate tax" one way or another. I just don't understand why it is that if I earn money, pay my taxes on that money, then I wish to give it away: why am I being taxed again on it, why doesn't the recipient pay the tax? Or, worse, do I pay the gift tax and THEN the recipient has to pay income tax on it? My head would explode if that is the case.

                              That my friend, is exactly why we hire the professionals

                              Integrity: There is no substitute.

                              "If some among you fear taking a stand because you are afraid of reprisals . . . recognize that you are just feeding the crocodile hoping he'll eat you last."

                                 
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