If you won a huge jackpot would you feel obligated to share it?

Reply #57

Toronto — Wed, 15 Oct 2014 06:58:30 GMT

I would help those that have helped me in the past the maximum gift amount of $14k annually and if anyone had any education or medical expenses that are exempt from gift taxes, then I would help them out with that. But #1 most important priority is anonymity and making sure people do not know that I won the lottery, so I would make up a story that I got good at poker and won an excessive amount.

Reply #56

KY Floyd — Wed, 15 Oct 2014 05:39:09 GMT

My main intent was to caution people who were saying they'd give away a large chunk of their winnings

One of the problems with planning to share is that there aren't a lot of court opinions to offer guidance. I've thought for quite some time that a lot of winners were begging for the chance to be hit with gift taxes, but based on the number of winners who talk about sharing with family and the very few stories like the tale of the waitress I get the impression that the IRS isn't overly aggre... [ More ]

Reply #55

tib52 — Wed, 15 Oct 2014 02:54:26 GMT

This would not be a gift, in a lottery pool only ticket win the j/p. An everyone get a equal share and no one sign the ticket. It maybe five or more people in the pool and each can received cash value or annuity. So with a lawyer you should be able to let your family be a shared winner of that ticket.

Reply #54

Artist77 — Tue, 14 Oct 2014 22:22:23 GMT

There is also another interesting point where the father is told by the GC of the lottery, NOT to sign the ticket.

Reply #53

tib52 — Tue, 14 Oct 2014 21:42:49 GMT

I am glad someone is speaking about giving if they win a large j/p.

Personally I can't see myself SPLITTING anything with anyone. I could see myself giving my intermediate family a few million, but not a large percentage and definitely not because I feel obligated to give them a part of the money, but because I'd want to.

This is what I feel is the best way to give them a large portion of your jackpot. As the ticket holder you have the option to do what you want to. Why give your family a... [ More ]

Reply #52

mikeintexas — Tue, 14 Oct 2014 21:30:05 GMT

Yeah, I was ultra-conservative on the yearly interest. I don't know how much I'd use to start my foundation, but I'd also leave a big chunk to it in my will. Your plans sound good to me.

I'm with the others who don't think much of national charities. I know of a few families within just a couple of blocks that could use help and handing them a $14,000 check (or more individually) could do more good than any charity could or would do f/ them - no administration fees, nothing spent for fund... [ More ]

Reply #51

mikeintexas — Tue, 14 Oct 2014 21:19:00 GMT

Appreciate the research. My main intent was to caution people who were saying they'd give away a large chunk of their winnings - I wanted to warn them that it isn't as simple as writing a check. If someone won tonight's MM cash option, they'd net right around 60 million after taxes. (my figures will be rounded up or down for simplicity) Sure, it'd be nice to give half of that to friends and family, but that would require another 12 million in tax, so that's 52 million paid out of the original 10... [ More ]

Reply #50

JackpotWanna — Tue, 14 Oct 2014 19:39:55 GMT

Mainly my parents.

Reply #49

Skibunnylk — Tue, 14 Oct 2014 18:56:02 GMT

Bill Gates has a net worth of roughly $80 billion so a $25 million gift is equivalent to someone who has a net worth of $1 million donating $300 of his or her money.

Just wanted to put things in perspective.

Reply #48

psykomo — Tue, 14 Oct 2014 18:32:07 GMT

Would you feel obligated to share it?

Zuckerberg gifts $25 million to CDC to FIGHT the EBOLA scourge!

We need to get Ebola under control in the near term so that it

doesn't spread futher and become long-term global health crisis

that we end up fighting for decades at large scale, like HIV or

polio ,.......Zuckerberg said in a Facebook post today 10/14/14

just say no 2 EBOLA

Reply #47

KY Floyd — Tue, 14 Oct 2014 17:10:42 GMT

I remember that waitress

I just read the court decision in the case, and it's a text book on how not to share. They had nothing even resembling a coherent agreement, and their testimony seems to have been completely honest about that. It really didn't amount to much more than lots of people do when they decide to buy some tickets at the same time as friends or family - if we win let's share . Nothing about any kind of agreement to actually buy tickets or any details on how much would be shar... [ More ]

Reply #46

RedStang — Tue, 14 Oct 2014 14:06:49 GMT

It cost $150,000 2 send a clean-up crew 2 where they once lived and clean good

Merry Maids would of done it for $200.

Reply #45

CDanaT — Tue, 14 Oct 2014 10:16:15 GMT

I had never thought of the safehouse for battered spouses...great idea... should the large prize(depending on the take home amount of course) come my way soon, I would like to take at least 20 million and set up a non profit. I am not sure if this is allowed or not but if I could invest the $20 Mil and use the interest income from it. Perhaps it could generate 4-5% interest or more profit annually to run the business and be given to specific people who truly need the help, like the battered spou... [ More ]

Reply #44

KY Floyd — Tue, 14 Oct 2014 07:44:28 GMT

I remember that waitress who got a share of a lottery win as a tip - she set up a corporation to share her portion of the lottery w/ her family and she got into trouble with the IRS. ... eventually get bitten.

If you're thinking of a Waffle House waitress from Alabama, Karma is what bit her in the ass. Supposedly all of the waitresses had an agreement to share, but the winner denied it. A court found that there was an oral contract, but said the contract was unenforceable, because it was abo... [ More ]

Reply #43

PrinceRene — Tue, 14 Oct 2014 06:07:02 GMT

if I won a jackpot, I would be obligated to share it with Uncle Sam. The IRS is going to want 39.6% of the money

Reply #42

weshar75 — Mon, 13 Oct 2014 23:13:51 GMT

I think that if I was lucky enough to win a jackpot in the lotto I would be willing to pay off debt for my family members. That is how I would help bye getting rid of their debt they have so it frees up money that they are spending to get rid of debt in the first place. It would only be my immediate family though no relatives or long lost cousins to help. I would hope that once out of debt my family would try and not take advantage of me bye buying things that get them back into debt hoping for

Reply #41

zinniagirl — Mon, 13 Oct 2014 20:18:48 GMT

Obligated? NO, would I, depending on the size, would split or gift part. Ie a 600 million jackpot is large enough to comfortably split between my 8 siblings and parents. Everyone would have enough to live on or blow to their preference. A 25 mill jackpot is not large enough to split among 11 people to live comfortably, that would be gifts.

other than that, would enjoy reading all the heartbreaking, sob story, crazy investment, job opportunity letters, etc that come with the opportunity.

Reply #40

mikeintexas — Mon, 13 Oct 2014 20:15:25 GMT

I was all ready to argue, but a little bit more detailed research shows you are right. I was under the impression that the 5.4 million was the cap on non-taxable gifts @ $14k/yr. but I now see the 5.4 million is an estate exemption, that your heirs can inherit that amt. of cash and/or property tax-free. Where I misunderstood was with the phrasing lifetime gift exclusion . That's good to know - that you can give each family member (or friends) $14k/yr. for as long as you live. (or until your mone... [ More ]

Reply #39

psykomo — Mon, 13 Oct 2014 18:16:49 GMT

OneAboveAll:

Psyko agree with UR post win plans 4D management of UR JACKPOT win'$$$$$!!!!

BUT

after.......giving 2UR first preference would U consider helping the African people

who R dying HORRIBLE death of the EBOLA virus disease 24/7 each day!!!

Make sure UR money goes 2D African people directly , because U may B the WON

who STOP'$$$$$$$ this THING over their NOW!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Over here, it cost 2 much in our health care system 2 fig... [ More ]

Reply #38

cbr$ — Mon, 13 Oct 2014 17:49:30 GMT

Yes, I would shared. When you give to your church which is considered - non profit. It's a tax write- off. There are other organizations that fit this category. There are some special interest groups , which normally you couldn't write- off just by handing them a donation. If the check read for educational purposes only. It can become a tax write-off. A lot of organizations will not tell you this right away, why until you give a special purpose for the use of the money, it go to where they want... [ More ]

Reply #37

aux8b — Mon, 13 Oct 2014 13:40:53 GMT

Yes. Check please.

Reply #36

helpmewin — Mon, 13 Oct 2014 09:37:05 GMT

Yes

Reply #35

KY Floyd — Mon, 13 Oct 2014 08:08:30 GMT

Give me a million bucks and I'll be glad to pay the taxes. As a matter of practicality the way to do it is to make a smaller gift that results in the tax bringing your total outlay to the amount you're willing to part with. For example, instead of giving somebody $1 million you could give them $714,285, and then pay $285,715 in gift tax.

As far as other gifts, the $5.34 million lifetime exclusion only applies if you die this year, and it only applies to one person. If you're married you can e... [ More ]

Reply #34

noise-gate — Mon, 13 Oct 2014 00:42:33 GMT

The question reads- if YOU won, that sounds singular to me.Just because it's family, that is not a reason to be taken advantage of. Just because I change the tires on my car does not mean everyone in the family gets a free set of tires. My brother sisters would not expect me to shower them with money since they are successful in their own right, but l would give them a decent cut ..why? Because l love my family and would like them to share in my windfall.

As for charities- don't call me, l wi... [ More ]

Reply #33

bigbear29 — Sun, 12 Oct 2014 22:03:39 GMT

Thanks Mikeintexas, I think I was over thinking this.

Reply #32

mikeintexas — Sun, 12 Oct 2014 20:52:35 GMT

I understand your sentiment and it's a noble one, but as I mentioned and linked to above, there's a limit. You really should be able to give your money away to whomever you like, but that's not the case. Personally, if I win a huge sum, I'm starting a foundation in my grandmother's name; she asked me to do it while she was on her deathbed and it's one of the main reasons I play the lottery. It will be a little involved to set up and I'll have to get others to serve on the foundation's board, fin... [ More ]

Reply #31

mikeintexas — Sun, 12 Oct 2014 20:38:52 GMT

Maybe I'm misunderstanding you, but no, I don't see how they'd have to pay taxes again on the same money . I figure it's like any other sort of income, the taxes would be due by April 15th. There's a form you fill out as the donor, but not sure about what one for the donee. Don't take my word as coming from any type of expert, please; I'm just going by what I read online, but I'd sure consult a tax attorney if/when you ever give some of your lottery winnings away.

That's nice that people w... [ More ]

Reply #30

mikeintexas — Sun, 12 Oct 2014 20:32:17 GMT

That's what I'd do too, but didn't say anything just in case the IRS is watching. wink Seriously, I think the IRS is only concerned about substantial transfers of cash/property. I don't know anyone who ever - for example - bought a car for their kids and declared it or had the IRS go after them because of the gift. (I believe you can transfer money to your spouse, but I haven't read anything about minor children) I have given out those gift cards for presents and while some people say they're to... [ More ]

Reply #29

OneAboveAll — Sun, 12 Oct 2014 19:27:07 GMT

if I won the 500 Mil Powerball or Mega Million, I am not greedy ...

I will only keep 15 Mil for my own use and give the rest away ...

I dont need 500++ Mil

I would keep just 15 Mil and give the rest to charity ... giving first preferences to single mothers in need ...

Because ???

Not Because ... It is Why Not ???

15 Mil is more then enough for myself, What am I going to do with 500++ Mil ???

and I get to help out the needy of America as well ...

And of

Reply #28

Artist77 — Sun, 12 Oct 2014 18:42:36 GMT

Thanks Lottometro. Now that answer makes the most sense up to now.

Reply #27

LottoMetro — Sun, 12 Oct 2014 17:32:14 GMT

The rules state that the Advertised Grand Prize amount is not the Gross Grand Prize Value, and further down they define Gross Prize Value as the prize value prior to deductions for applicable federal and state withholding taxes. My understanding is that the advertised prize is 0.75 times the actual (gross) prize. So a winner may walk away with $2 million (withholding paid), but the actual prize was $2,666,666.67 (4/3 times the advertised prize). It's basically a marketing scheme.

Reply #26

Artist77 — Sun, 12 Oct 2014 16:47:14 GMT

On a related matter, this makes me still wonder how the Lottery in the Hot Lotto game can pay the withholding tax (I assume the federal 25%) for the winner. I always thought this was not legal per the tax code.

Reply #25

mrcraft — Sun, 12 Oct 2014 15:34:10 GMT

I wouldn't feel obligated to share, but I will with those I want to. I highly doubt I will share with those who ask though.

Reply #24

CDanaT — Sun, 12 Oct 2014 15:16:12 GMT

Mike..........I think in addition to the max allowed dollar figure, I would also consider doing this, should I choose to share even more...buying low dollar money orders(under $175.00) from a machine or $50 + $100 gift certificates from that big named store that begins with a W..maybe the same amount from that orange store that has an H and a D in it or a gas card. Possibly gift certificates to various restaurants or any place that I know of that the people I give to will utilize throughout the

Reply #23

bigbear29 — Sun, 12 Oct 2014 13:55:41 GMT

Mikeintexas, you brought up the gift tax and I mentioned that the donee should pay the gift tax. So, the following year the donee is taxed again on the same money plus their income under the income tax. I think this is correct, do you agree

Reply #22

Coin Toss — Sat, 11 Oct 2014 23:58:35 GMT

No, not obligated. Take your finger out of that dike and you'd really be asking for it.

'Obligated' can be a tough word.......there was a thread once about would hitting a jp make you obligated to quit your job and make way for someone who really needs it and that thread went down a rabbit trail of, I ain't obligate to do nothin'....

Reply #21

bigbear29 — Sat, 11 Oct 2014 23:54:50 GMT

In my paper work, I have done math that the donee will pay the taxes and they will have to live with that. And it may change, it depends on the jackpot amount. I have to have a certain amount to live in Rancho Santa Fe, Ca. ( San Diego area).

Reply #20

mikeintexas — Sat, 11 Oct 2014 23:54:27 GMT

Yup, I agree and I'd go even farther to say that you'd need second opinions...IOW, find a CPA to check the information of the first one, ditto w/ the attorney and CFP. After all, if a doctor tells you that you only have six months to live and there's nothing that can be done, you'll want to consult another doctor, right?

I understand why the IRS limits charitable deductions, but I'm of the mind that it's our money and what we legally do with it should be no one's business, particularly the... [ More ]

Reply #19

mikeintexas — Sat, 11 Oct 2014 23:41:10 GMT

Sure, but they might be upset that your gift of five million will only be three million after taxes. As you say, that's more money than they had before, but OTOH, they might resent that you, Mr. Moneybags, didn't want to pay the taxes. Again, money often changes people, whether it's you w/ the new wealth or those around you.

Reply #18

jjtheprince — Sat, 11 Oct 2014 23:26:23 GMT

Taxes are the reason I'd renounce US citizenship for good and become a citizen of the Cayman Islands. I'd pay my exit tax and then tell Uncle Sam Fvck you

Reply #17

music* — Sat, 11 Oct 2014 23:22:45 GMT

MikeinTexas, no I did not know that the IRS has a cap on charitable donations. Thanks again for keeping us up to date.

I guess a CPA, a Certified Public Agent, would also be up to date with the IRS rules and regulations.

So, that makes an attorney, a CPA, and a CFP Certified Financial Planner possible future hires when I have millions to protect.

I am waiting for the NLDS to start. Go Giants ! LOL

Reply #16

bigbear29 — Sat, 11 Oct 2014 23:14:55 GMT

That is good info, but I would hope the donee will agree to pay the taxes.

Reply #15

mikeintexas — Sat, 11 Oct 2014 23:03:34 GMT

From the IRS site:

Who pays the gift tax?

The donor is generally responsible for paying the gift tax. Under special arrangements the donee may agree to pay the tax instead. Please visit with your tax professional if you are considering this type of arrangement.

Reply #14

bigbear29 — Sat, 11 Oct 2014 23:00:13 GMT

What ever the amount is they will have to pay the taxes and still have more than what they have now.

Reply #13

mikeintexas — Sat, 11 Oct 2014 22:40:41 GMT

You do not have to split your jackpot equally.

You can share your winnings however you like, but giving anyone else anything over $14k (per yr.) will subject the amt. over and beyond that to the gift tax. Of course, if you have an agreement on paper (to document it), you can apportion shares however you like, but to carry full legal weight, it should be notarized and you can't do that after the drawing date or the IRS would be on you like a duck on a June bug. (with about the same results... [ More ]

Reply #12

bigbear29 — Sat, 11 Oct 2014 22:23:56 GMT

For me, I would ask how much do I need to buy a nice home in a gated community, money put aside for property taxes and gated community fees for 41 years. Than I would set-up a 41 year life style budget. Depending on the size of the jackpot, I would say 15 to 20 million dollars for me and about 5 to 8 million for my brother, two sisters, my son and mom and dad. For a charity, at the moment no money because I do not trust charities, like the charity in New York for the Veterans that keeps most of

Reply #11

mikeintexas — Sat, 11 Oct 2014 21:22:38 GMT

Y/W. It wasn't a correction - as I said, your post had been posted while I was composing my own. Those numbers change all the time; for example, the total lifetime exemption was 5.25 million and from what I've read, was adjusted upward to account for inflation. I've also read that $14k per yr. amt. might be upped as well. Did you know the IRS has a cap on charitable donations?

I try to consider all avenues but sometimes it leads me to think of the worst possibilities. I love my family (wel... [ More ]

Reply #10

mikeintexas — Sat, 11 Oct 2014 21:08:19 GMT

I know I've been wasting too much time on Facebook when I see something like this and want to hit the Like button, then I remember the emoticons.

Reply #9

CDanaT — Sat, 11 Oct 2014 20:58:32 GMT

feel obligated to share ?? I think it is already been decided for you....you know, through the new wealth redistribution program recently initiated..

Reply #8

MillionsWanted — Sat, 11 Oct 2014 20:52:27 GMT

I would give a few percentages to my nearest family and a few percentages to good causes. That would be 10-15% total I think.

Reply #7

sully16 — Sat, 11 Oct 2014 20:24:56 GMT

No, but I would quietly help family and friends.

Reply #6

music* — Sat, 11 Oct 2014 19:59:36 GMT

Thank You mikeintexas for your massive missive. I have written down your corrections of my work on my sheet of must do's when I win. Let's just hope and pray that we have these head aches and problems in our lives after we win.

Reply #5

TinkerMazell — Sat, 11 Oct 2014 19:34:06 GMT

I wouldn't feel obligated. It's MY money. I won it. I don't mind sharing, though. But not out of obligation, just the kindness of my heart.

Reply #4

emilyg — Sat, 11 Oct 2014 19:21:08 GMT

I would not feel obligated - I would WANT to share with daughter, grandsons and one very good friend.

Reply #3

mikeintexas — Sat, 11 Oct 2014 19:20:23 GMT

I wouldn't mind sharing with some of my family, but consider this: let's say you won a JP w/ a cash option of a hundred million. Depending upon where you live, you're paying approx. 40 million in taxes. If you want to give a million bucks to someone, you have to pay 40% gift tax, so your largesse will cost you 1.4 million. I don't know about you, but I've already paid MORE THAN ENOUGH in taxes on that money.

The IRS might have changed the numbers, but the last I read about it was that you... [ More ]

Reply #2

music* — Sat, 11 Oct 2014 19:11:41 GMT

Please consult with the IRS before gifting. I think that each person is allowed by the IRS to give another person a total of $14,000.00 per calendar year . Double that amount to $28,000.00 if you the gift giver are married. There is a gift tax of about 55% for amounts greater than those.

I have been told that ignorance of the law is no excuse to not abide by it. I have my personal opinions of taxes in general.

Please correct me if I am wrong. Thank You

Reply #1

LottoMetro — Sat, 11 Oct 2014 18:46:49 GMT

I wouldn't share it in the fashion of charitable giving to anyone. Instead, I would use it to start a business or something and share it through that (creating jobs with good benefits, produce products to help the world, etc). If my family wants some of it then they can mow my lawn, be my travel agent, etc.

If you won a huge jackpot would you feel obligated to share it?

Kordman916 — Sat, 11 Oct 2014 18:06:00 GMT

I've seen many a post around these boards about how if a person won a huge jackpot they would split it between their siblings and parents...

Personally I can't see myself SPLITTING anything (I'm talking like a 25/25/25/25 split). I could see myself giving my intermediate family a few million, but not a large percentage and definitely not because I feel obligated to give them a part of the money, but because I'd want to.

I definitely am not a charity person (OH NO!!!) so until I find... [ More ]