A present to family that says if I win powerball, I'll give you X%. Does that work?

Reply #27

Iesha Kelly — Sun, 29 Aug 2010 06:18:37 GMT

Why include an attorney? Because it's the smart thing to do. Wasn't there just a story last year about two elderly sisters fighting for years over a lottery win? Never EVER promise something to someone without paper/legal backup; because not only will they want a cut -- you're going to need to protect yourself from your own suddenly failed memory about what promises you made to whom, when.

Talk to an attorney, and talk to an accountant if you're truly serious.

Reply #26

TheGameGrl — Sun, 29 Aug 2010 00:37:13 GMT

There is a one time lifetime gift restriction (non taxable) currently set at 5 million(accumulative) for family members. Which yes will be changing in Jan 2011.

SO if my family cant handle five million amongst themsevles then shame on them.....

To divert the upcoming death tax, create the TRUST and assign members to it. This deters certain taxs being imposed when one member pass's on.....

I prefer the tried and true method, Bury it in a yard and leave the map to moi! I promise not to te... [ More ]

Reply #25

KY Floyd — Sat, 28 Aug 2010 17:14:50 GMT

You understand it correctly, Coin Toss doesn't.

Reply #24

savagegoose — Sat, 28 Aug 2010 10:42:10 GMT

lol simple ok ill take care of your tax problems. cancel the cheque and they have no more tax problems

Reply #23

drhymes74 — Sat, 28 Aug 2010 01:29:50 GMT

Coin Toss,

I have a question regarding your comment on the odds when you buy multiple tickets.

There is a game in Maryland that is called Multi Match

For $2 you play a line of 6 numbers and get an additional 2 lines of 6 numbers. You win the jackpot by matching all 6 numbers on one of the 3 lines.

On the Md website it lists the odds as follows:

The probability of winning the jackpot per line is 1 in 6,096,454 and the probability of winning per ticket (that is with the 2 addit... [ More ]

Reply #22

KY Floyd — Sun, 22 Aug 2010 17:57:23 GMT

If I win the lottery jackpot, I will share 20% with you (to my parent's of course) , and then for my sister and brother, I'd say If I win the lottery jackpot, I will give you 5%. .

Why on Earth would you think that promising to give somebody a gift would keep it from being a gift?

If you have prior arraginments where other people contribute to the lottery ticket, I heard it doesn't get a gift tax.

If somebody contributes to the ticket they own part of it, so they're not being given a... [ More ]

Reply #21

jwhou — Sat, 21 Aug 2010 05:08:20 GMT

There would be two Powerball draws a week for a total of 1,040 Powerball draws over ten years. If all 1,000 tickets were on one draw and none of the tickets overlapped then it would be 1 in 1,952,491 but if it was one ticket per draw except for 40 draws then it's 1 - ( 1 - 1/195,249,054)^1,000 which you will find to be ever so slightly worse than 1/1,952,491 but there is the remote chance that you could win more than one jackpot prize when it's spread out over multiple draws while having it all... [ More ]

Reply #20

jwhou — Sat, 21 Aug 2010 04:58:22 GMT

The best you can hope for would be to say that you all had joint ownership of the ticket, with 20% being your parents and your siblings 5% each and the remainder being yours. Everybody's share will be taxed as income with 25% being with held by the lottery commission (if it's a big enough win, you'll all be owing more come April 15th, that with holding won't cover it all). Some families will form a trust or corporation to collect the prize, not only does it retain their anonymity to a certain ex... [ More ]

Reply #19

RJOh — Sat, 21 Aug 2010 04:12:10 GMT

That dirty !@%^(@$ won $60 million, gave me one, and wouldn't even cover me for the tax on it.

I know, that time that GM gave all of Oprah guess a new car, many of them acted like they had never paid taxes on a car before. Some of them cried like someone had stabbed them in the back.

Reply #18

sully16 — Sat, 21 Aug 2010 04:05:05 GMT

Everything I'd do for my family would be done quietly.

Reply #17

Coin Toss — Sat, 21 Aug 2010 03:59:05 GMT

They're not going to want to be on a form, or even sign it. They're going want what they deem their fair share tax free, gratis of the winner.

Like many other things in life, no matter what you do, it's nevr enough.

You won $60 million and are givng me $1 million, c'mon, take care of the taxes for me.

Level 2 is that if you did do it they way you suggest (which is a good suggestion) many of the recipients would hate the giver for it from then on.

That dirty !@%^(@$ won $60 million... [ More ]

Reply #16

RJOh — Sat, 21 Aug 2010 03:48:37 GMT

What you say above is true, but it's not unheard of for people who are given a large sum of money from a lottery win to tell the giver, You won millions, how about taking care of the taxes for me, too. Large amounts of money do strange things to people.

In that case the giver should explain to the receivers that was why they were put on the form as one of the winners. Now the taxes are their problems.

Reply #15

Coin Toss — Sat, 21 Aug 2010 03:29:52 GMT

andymnfun,

If I buy 1,000 tickets over 10 years, I have a 1 in 1,952,491 in winning the powerball, but hey, crazier things have happened.

No, you will have had 1,000 tickets that were all up against 1 in 195,249,054 odds against winning the Powerball. Only one set of numbers is drawn, thus that one set wins if anyone has it and every other set loses. The same exact thing happens for every drawing.

RJOH,

What you say above is true, but it's not unheard of for people who are given a... [ More ]

Reply #14

RJOh — Sat, 21 Aug 2010 01:52:21 GMT

If you fill out a IRS form 5754 with your family members names, social security numbers and their share of the jackpot before you make a claim,they will be treated as members of a lottery pool , get a W-2G and be responsible for any taxes owed on their share of the jackpot.

Reply #13

drhymes74 — Sat, 21 Aug 2010 00:39:41 GMT

Being the master of the obvious that I am, you have to win first.....no sense in hiring an attorney and setting anything up.

Let's say you do win, you go ahead and claim and decide to give $$ (say 5-10%)after claiming. If the amount of money you give away is more than $13,000, you will have to pay gift tax on the amount you give away.

If you won, your best bet would be to get an attorney to draft up an agreement that would allocate the amount you wish to share. Develop a way that would pro... [ More ]

Reply #12

andymnfun — Fri, 20 Aug 2010 21:25:31 GMT

I'm not sure if I'm following. I thought 5% to my brother and sister each and 25% to my parents was pretty generous.

A 45% gift tax if they aren't registered on the winning ticket would be enforced. That's crazy.

I just want to know if I can do this.

I thought about sending an email with this agreement to my family. It would have a date of delivery and agreement. I'm not sure if that would work though.

Reply #11

RJOh — Fri, 20 Aug 2010 21:16:37 GMT

I thought it'd be a fun present to give my family that says something like, If I win the lottery jackpot, I will share 20% with you (to my parent's of course) , and then for my sister and brother, I'd say If I win the lottery jackpot, I will give you 5%. .

Why so cheap? It's not going to cost you any more if you never win to give your parents 25% and your siblings 12.5% each. Plus if they ever accumulate any wealth you won't feel bad asking them to share since you have been so generous with w... [ More ]

Reply #10

andymnfun — Fri, 20 Aug 2010 21:00:15 GMT

Well my family is very responsible, and if I won $50,000,000, I wouldn't need it all. If anything, I'm the wreckless one, lol. I've got a very responsible family who'd never ask for another penny.

What the heck am I going to do with $50,000,000 with interest? I think it might be selfish to not give away 1/3 of it to people I care about.

There has to be a way to be able to split it and not incur a gift tax.

If I buy 1,000 tickets over 10 years, I have a 1 in 1,952,491 i... [ More ]

Reply #9

Coin Toss — Fri, 20 Aug 2010 18:28:31 GMT

I'm guessing it wouldn't work because of what several people on the lottery documentaries on TLC have said when you win a jackpot. One said everyone thinks you have just become their ATM and another winner said he gave numerous people $1,000,000 each and every single one of them blew it all and came back asking for more.

Reply #8

andymnfun — Fri, 20 Aug 2010 17:12:25 GMT

Good responses.

A 50% death tax is pretty high. In a way, I guess they are saying if you want money you got to work for it. You're not suppose to live off soemone elses empire. In a way it makes sense, and in a way it's frustrating.

I'll let you guys know what the Minnesota State Lottery says. I sent them an email.

It wouldn't seem fair if you can't have more than one winner with different percentage takes. What if someone bought 100 tickets and you have 2 buddies who are like... [ More ]

Reply #7

truecritic — Fri, 20 Aug 2010 09:53:34 GMT

It would be my understanding that whatever you do to split your lottery winnings, it has to be done in a way that it is registered in your city clerk's office. Not just some note saying you can have 5%.

Reply #6

rdgrnr — Fri, 20 Aug 2010 09:47:54 GMT

Ha, ha. Think the tax thing is crazy now?

Wait til after the first of the year when our beloved President reintroduces all the taxes that the last President cut.

That will include the Death Tax so tell your heirs not to get too excited about their inheritance because the government is gonna take their half first.

Yes, I know that they took half of it when you won it but the Death Tax will allow them to take half of what you have left of it again.

Have a nice day.

Reply #5

Stack47 — Fri, 20 Aug 2010 08:38:11 GMT

If you do a search on Lottery Pools, you'll get a good idea of how many them end up in court. Bet many of these pools wished they had advice from an attorney before they set up the pool.

What if I bought $50 worth of powerballs and my friend gave me $5, and I said ok, I'll give you 10%. Doesn't that ever happen?

There probably are many unequal partnerships formed, especially when the jackpots are high, but the answer depends on the state lottery regulations where you buy your tickets. On... [ More ]

Reply #4

andymnfun — Fri, 20 Aug 2010 08:20:41 GMT

Why would you have to talk to an attoryney? I'm pretty sure most everyone who does group buys doesn't talk to an attorney.

I thought there had to be some established basis of agreement about splitting lottery tickets before the actual drawing. Maybe sending them emails saying the plan, and if I won I could present the date of the email as a basis of an agreement. That seems like it would work pretty well.

There has to be some way of splitting the pot without doing it 100% ev... [ More ]

Reply #3

Stack47 — Fri, 20 Aug 2010 08:15:09 GMT

Last year there was a thread about creating a Limited Partnership where each member was given different percentages. Some of the things we read on LP aren't 100% accurate so if you really do want to plan ahead for that multi-million jackpot prize, talk to an attorney or financial adviser before buying your winning ticket.

Reply #2

andymnfun — Fri, 20 Aug 2010 07:39:18 GMT

I know it wouldn't be tax free of course, but let's say the prize was $50,000,000 and I gave them gifts that said I'll contribute 5 cents to every ticket for you, would they be considered winners? They'd get $2,500,000 each since they only contributed 5% of the ticket then of course pay the ensuing taxes, but I wouldn't get taxed then give a gift that would get taxed even more. I don't see why it has to be 25% four ways if their contribution wasn't a full 25% each.

That way I wouldn't be givi... [ More ]

Reply #1

badboy00z — Fri, 20 Aug 2010 07:33:44 GMT

Yeah....We get taxed even before we get our pay checks, taxed again during tax season and taxed if we want to give that money away. It's tyranny I tell you.

If I ever give money away it would be $12k/person each year max unless they offer to pay the gift tax.

A present to family that says if I win powerball, I'll give you X%. Does that work?

andymnfun — Fri, 20 Aug 2010 07:12:53 GMT

I thought it'd be a fun present to give my family that says something like, If I win the lottery jackpot, I will share 20% with you (to my parent's of course) , and then for my sister and brother, I'd say If I win the lottery jackpot, I will give you 5%. .

Would that work? Lol, the gift tax thing is crazy. If you have prior arraginments where other people contribute to the lottery ticket, I heard it doesn't get a gift tax.

Any thoughts on this?

:)

How n... [ More ]