Is it possible to remain anonymous in NJ through a trust or attorney?

Reply #32

MegaWinner — Thu, 08 Mar 2007 19:47:27 GMT

Interesting. Hmmm... Thanx for the info

Reply #31

KY Floyd — Thu, 08 Mar 2007 19:28:30 GMT

You can create a blind trust anywhere. A blind trust is a legal entity and for the most part any legal entity can own property, whether it's stocks and bonds, real eastate or lottery tickets. The only real quetion is what information the state will release to the public. Every legal entity, whether it's a trust (of any sort), a corporation, or an individual has the name of at least one person associated with it. For a blind trust the trustee is the legal owner. I would assume that unless the l... [ More ]

Reply #30

MegaWinner — Thu, 08 Mar 2007 03:16:23 GMT

Hey guys, what about the Powerball in Pennsylvania? Can you claim through a blind trust in that state? Thats where I get my powerball tickets whenever I play that game.

Reply #29

guesser — Wed, 07 Mar 2007 18:06:08 GMT

Or even now, with California not reporting results yet... it's like an election - 'hanging chads' on my lottery ticket ?

Seraphim - Like we keep saying ad nauseum - if you don't like your name being plastered all over the media, it's really simple: don't play. You buy a ticket, and you have to adhere to the rules.

Reply #28

CA LotteryGuy — Wed, 07 Mar 2007 16:35:04 GMT

Seraphim 712...the reason the lottery wants to post a name is to remove the idea of anything improper. Just look at last night's postings when the results were delayed. People thought the fix was in. Imagine what it would be like if the winner remained unkown. Oh how conspiracy theorists would have a field day!

The lottery officals feel there is a greater good in releasing the names of winners. If I where in their shoes, I would do the same thing.

Reply #27

Seraphim 712 — Tue, 06 Mar 2007 17:41:59 GMT

Is it possible to set up a blind trust in Georgia? I doubt it. But what I don't understand is why they would want to post your name when they know the outcome of lottery winners who are exposed to the world.

Reply #26

CA LotteryGuy — Tue, 06 Mar 2007 16:34:20 GMT

LottoBuster....whether or not you can set up a blind trust in NY is not as critical to remaining anonymous as are the rules of the NY Lottery. Lotteries are usually pretty specfic about how a claimant is to be identified. Not sure about NY.

Reply #25

CA LotteryGuy — Tue, 06 Mar 2007 16:29:38 GMT

MegaWinner...can't answer about the gift and estate tax in 2011. My opinion, for what is worth, is that it would be tax free all around. Why would something not be income in one year, and be considered income the next? But remember we are dealing with the IRS.

That is if and this is a very big if, there are no changes to the gift and estate tax for 2011 and beyond. That remains to be seen. After all there will be a new sheriff in town come January 2009 and no telling what the inclinat... [ More ]

Reply #24

LottoBuster — Tue, 06 Mar 2007 03:46:22 GMT

Even setting up a blind trust to shield one's identity is illegal in NY? It's the type of law I would expect from this state but I just couldn't find anything on it.

Reply #23

MegaWinner — Tue, 06 Mar 2007 03:12:19 GMT

Okay, what about in 2011 when there will be no gift or estate tax. Does the giftee have to report the gift and pay %35 taxes or do the rules remain the same and the giftee doesn't report it as income that year and only pays taxes on interest gained the following year.

Because if that is the case, I wouldn't give anyone their share until 2011.

Is this true

Reply #22

CA LotteryGuy — Mon, 05 Mar 2007 15:18:28 GMT

MegaWinner...here are my thoughts on your questions:

Gift Tax: The only tax is on what you, the giftor, give. In fac they, the giftee, don't even report the money they were given.

Income: You pay tax on only the intrerest income of $3,000,000.

GOOD LUCK

Reply #21

MegaWinner — Mon, 05 Mar 2007 14:12:21 GMT

Okay, here is another part to my question. Lets say you want to give a relative $7 million. After the 46% estate/gift tax, they are left with $3,780,000 (oh yes, the tax is coming out of their share). Now, this of course puts them into the highest tax bracket at 35% federal income rate.

This is the burning question, do they now have to pay an additional 35% of the $3,780,000 since they are in the highest tax bracket even though uncle sam already thieved 46%, which would effectivly reduce... [ More ]

Reply #20

dingo — Mon, 05 Mar 2007 06:42:19 GMT

Dealing with tax is a big headache for lottery winners who want to give money to their relatives.

I remember one of my co-worker he said, if I win, I would give you half. Haaahaha Now, I try to figure it out. If this had happened then he would poor than I was, because of the gift tax.

Thank you for open my eyes on this issue. So I've learned that don't make promise about giving money when you have won lottery. It only brings in law suit and tax headache.

Is this why so... [ More ]

Reply #19

rundown99 — Mon, 05 Mar 2007 03:27:58 GMT

You can NOT remain anonymous in New York or New Jersey. On the east coast, Delaware, New Hampshire (with the help of a trust), Maryland, and South Carolina are the states where you can remain anonymous.

Reply #18

LottoBuster — Mon, 05 Mar 2007 02:54:08 GMT

If I'm not mistaken I think one of the states where you could do that was either Montana or Wyoming. So if I happen to win the lotto in NY I could setup a corporation in one of those states and under their law cash it in anonymously through the corporation and there's nothing NY could do. This was a few years ago and who knows if the laws have changed?

The best way around it for me is to have a dynamite Pick 3 or 4 system where you could win the money over time and without the publicity.... [ More ]

Reply #17

CA LotteryGuy — Mon, 05 Mar 2007 02:13:48 GMT

LottoBuster...in California you can set up a business enity, however the Lottery can require that the business enity name a natural person to claim the winnings. It is all but impossible to remain anonymous in California.

As far as blind trusts are concerned, what you would be looking for is a trust where the ownership is unknown. The most common type of blind trust is one where the person who owns the trust has no say in how the trust invests it's money. This is what politican's typically... [ More ]

Reply #16

mune4me — Mon, 05 Mar 2007 00:33:08 GMT

Sounds to me like you have one

Reply #15

LottoBuster — Mon, 05 Mar 2007 00:19:37 GMT

What about New York State, does anybody know what the laws are for remaining anonymous? I've looked all over the internet and the official NY lottery site and can't find any information. I'm assuming that it being NY anonymity isn't allowed but what about blind trusts?

A few years back I recall reading that another way to avoid having your name released was to setup a corporation and cash it in that way. A few states out west supposedly allow individuals to do that for this purpose.... [ More ]

Reply #14

CA LotteryGuy — Sun, 04 Mar 2007 16:56:40 GMT

Stack47...it is not quite that bad for companies. In a business it is Reveune minus Expenes equals Income, more commonly noted as Profit. Companies are taxed on money after paying the expense of wages.

KYFlyod...thanks for the reply. If (when hopefully) I win I will be sure to get a great lawyer and tax accountant.

Reply #13

KY Floyd — Sun, 04 Mar 2007 09:21:34 GMT

Of course you're correct about what the technical requirements are. There are very few things the IRS hasn't already considered and come up with rules for. This is yet another reason that people with big money should consult professionals to get their detailed advice. Your options for helping somebody with housing would include cheap rent and hiring them as a caretaker. The value of housing provided to an employee may be taxable, but for parents who are retired the tax would probably be modest... [ More ]

Reply #12

codmander — Sat, 03 Mar 2007 21:44:36 GMT

why not just say ya all chip in on the ticket and split it 100mill 10 peeps 10 mill a piece each one gets taxs on thier 10 mill and spreads the nuicense of being not the only jackpot winner probly better off if they allow more than 1 person to cash a ticket in

Reply #11

Stack47 — Sat, 03 Mar 2007 17:04:46 GMT

It's the same process as in business where the companies are taxed on their income and the employees are taxed again when the get their paychecks.

I believe it's possible to designate family and/or friends as co-owners of the ticket, but don't know if the portions could be divided unequally.

Reply #10

CA LotteryGuy — Sat, 03 Mar 2007 16:32:41 GMT

KY Floyd...quick comment about your answer of buying a house for investment purposes and letting your parents (or for that matter a sibling or even good friend) live in the house. The IRS web site about Gift Tax says the following Gifts include money and property, including the use of property without expecting to receive something of equal value in return.

Would the investment house fit this criteria? I guess you could set up a program where the person living in the house is a caretaker

Reply #9

Raven62 — Sat, 03 Mar 2007 16:26:55 GMT

If you give someone money or property during your life, you may be subject to federal gift tax.

Generally, you do not need to file a gift tax return unless you give someone, other than your spouse, money or property worth more than the annual exclusion ($11,000 in 2002, 2003, 2004 and 2005; $12,000 beginning in 2006) for that year. Although a return may be required, no actual gift tax will become payable until the cumulative lifetime taxable gifts exceed the applicable exclusion amount. The d... [ More ]

Reply #8

MegaWinner — Sat, 03 Mar 2007 15:23:30 GMT

I just did some research. It looks like if I won the $135,000,000 (after taxes @ 35%) and wanted to give away $60 million of that to close family and friends, that amount is effectively reduced to $32,400,000 after taxes @ 46%. So I could actually only give away that amount which effectively reduces everyone's planned share by almost half.

If that isn't thievery then I don't know what is.

Reply #7

Todd — Sat, 03 Mar 2007 15:09:05 GMT

I have no idea.

Generally speaking, you can give anyone a tax-free gift, one time only, of up to $10,000 from one source of funds.

Reply #6

MegaWinner — Sat, 03 Mar 2007 14:41:04 GMT

How much is the gift tax in New Jersey

Reply #5

Todd — Sat, 03 Mar 2007 13:53:43 GMT

Believe it or not, NJ is actually one of the best states for lottery winners, because there is no state tax on lottery prizes, only Federal.

With regard to your first question about being anonymous, NJ even allows people to search for winners by zip code. There is absolutely no privacy in NJ if you're a big winner. The best thing to do would be to move.

Reply #4

KY Floyd — Sat, 03 Mar 2007 08:03:13 GMT

If a lottery ticket costs $1 then it's only worth $1 right up until the moment that the drawing changes its value. If you give a share to somebody while the ticket is worth $1 then they become a co-owner. As a co-owner they're entitled to a share of any winnings and they are then obligated to pay taxes on their share. If you wait until the ticket becomes a winner you're the sole owner of the ticket and anything you give to somebody after that is a gift of *your* cash. If you give an individual... [ More ]

Reply #3

twisted — Sat, 03 Mar 2007 07:01:20 GMT

The federal tax would be 35% in total because you would fall under the highest tax bracket if you win a multi-million dollar jackpot. They only withhold 25% but you will owe another 10% at the end of the year . If you give your father and mother $1 million each, you would owe gift tax on the 2 million you gave away. So yes, the money will be double taxed if you do it that way.

Reply #2

MegaWinner — Sat, 03 Mar 2007 06:37:37 GMT

So the money will be double taxed anyway?

I figured, the cash value is $7million. After the 25% federal witholdings, you will see roughly $4.5 million. So its already taxed. If I wanted to give my mom and father 1 million each, they would have to pay taxes on it again

Reply #1

twisted — Sat, 03 Mar 2007 06:15:39 GMT

As far as I know its not possible to remain anonymous in NJ. NJ wont let a blind trust claim a jackpot and wont allow the winner to claim anonymously in any other way.

You cant just make up a list of people you want to share the winnings with at the time you claim. You can share the winnings with your spouse without a problem, but sharing with anyone else will require you to produce evidence that you had pooled your money to buy tickets and you would also have to show how much each pla... [ More ]

Is it possible to remain anonymous in NJ through a trust or attorney?

MegaWinner — Sat, 03 Mar 2007 06:07:22 GMT

Is it possible to remain anonymous in New Jersey through a trust or attorney after winning the Mega Millions Jackpot? I have often wondered about this and would like to know so I can be prepared when I win (oh yeah, I WILL win lol!).

Also, am I right to say that if you have a list of people you want to share the winnings with at the time of claiming the prize, the money will not be double taxed . Meaning if I got the money first and paid taxes on it then dispersed the money to the people o... [ More ]