How to disperse multi-million dollar winnings?

Reply #23

myturn — Mon, 18 May 2015 10:36:50 GMT

If you are lucky enough to win, please get independent professional financial advice before you do anything or tell anyone. A win would be the opportunity of a lifetime to establish long-term financial security, you shouldn't blow it.

Reply #22

myturn — Mon, 18 May 2015 10:22:17 GMT

If/when I win, I will focus on long-term financial security, not sharing it with other people. If you go down that road, you will find yourself back where you started.

Reply #21

Teddi — Sat, 16 May 2015 00:35:58 GMT

Please do not do that unless you're sure that they will not exceed the allocated lifetime gift allowance. Hospital bills are exempt IF you pay the hospital directly, but none of the other things you mentioned are. You could be setting yourself up for a huge financial penalty.

Reply #20

Murgatroyd — Fri, 15 May 2015 00:27:16 GMT

Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. ? What does that have to do with lottery winnings

Reply #19

nina09 — Thu, 14 May 2015 12:31:12 GMT

One of your most important assets would be a good tax attorney and cpa , they would help you navigate the tax code and all of its loop holes.

I personally have decided that I will set a blind trust fund with around 2-5 million for each and they would only get 25k or 75% of the interest generated annually. Provision will be made for medical emergency and first home purchase . I don't do this for my benefit but for theirs , I want to give them financial security and make them feel more comforta... [ More ]

Reply #18

RJOh — Thu, 14 May 2015 11:58:30 GMT

To hell with a trust, if I ever win a lottery jackpot I plan on living like I won a lottery jackpot with a nicer home and a few toys I never thought I would be able to afford. It doesn't bother me to see relatives and others enjoying things I can't afford so why should having the same advantages bother them

Reply #17

CDanaT — Thu, 14 May 2015 11:16:54 GMT

Thanks for the reminder RJOH, another reason to claim via trust, TELL NOBODY and have only the ATTY be present to accept the check.

Reply #16

RJOh — Thu, 14 May 2015 04:09:33 GMT

Do you really think if you won a major lottery jackpot, all your relatives would be happy sharing a millions dollars from you? Remember the guy in Canada who split the jackpot with a friend who split the cost of the tickets and was sued by his sister because she thought she deserved as much as his friend even though she had contributed nothing to the cost of the tickets.

Reply #15

CDanaT — Thu, 14 May 2015 00:39:35 GMT

If i spread Preparation H all over you, will you become less irritating and go away

Reply #14

geerod2001 — Wed, 13 May 2015 22:26:51 GMT

All jackpot winners should do some research into filing IRS form 4852 when claiming lottery winnings.

Reply #13

BobP — Wed, 13 May 2015 22:07:43 GMT

Paraphrasing advice previously found on LP.

Open a million dollar checking account in the names of all your relations. Provide each with a checkbook and instructions to only withdraw what they need.

Move to a state with no city or state income taxes like Florida.

BobP

Reply #12

music* — Wed, 13 May 2015 15:32:43 GMT

Funtimz, You really should consult with a CPA, Certified Public Accountant , before giving any money away. There could be tax laws that you do not know about. Gift taxes could bite you in the butt.

Reply #11

Funtimz — Mon, 11 May 2015 01:21:14 GMT

As silly as it may sound, I would pay off my families major bills; mortgages, car loans, hospital bills etc (my sister has major bills in all of these. But then once they are paid off I would just give them a bit of cash because eliminating their bills, frees their own monies up.

Reply #10

RJOh — Sat, 09 May 2015 18:48:23 GMT

Be careful what you wish for, right now your family and close friends have no reasons to dislike you.

Reply #9

MTBDET — Sat, 09 May 2015 18:28:41 GMT

Thanks everyone. I think I have a better understanding. It would be a good problem to have. I'd rather it be a real problem than an imaginary one! :D

Reply #8

Teddi — Sat, 09 May 2015 14:03:06 GMT

I think that's a big mistake. After paying 45% in taxes, why would you even entertain the idea of giving more than that away to Uncle Sam. If you want to give your sister that much, then split the lottery with her. She'll walk away with $12.5 million instead of the $10 million you intended on giving her, but if that's a problem, you can set it up so that she gifts the additional 2.5 million back to you and it would be tax free.

Or give her enough to pay off all her bills and retire, say $4 m... [ More ]

Reply #7

Stack47 — Sat, 09 May 2015 01:33:12 GMT

You obviously haven't researched non-American jackpot winners.

Should a non-US citizen win a lottery prize, they are subject to federal withholding taxes for non-US citizens, which is 30% of their winnings. While this amount may vary depending on which state the winning ticket is claimed in, the amount that non-US citizens are taxed is very similar to that which is applied to US citizens.

Reply #6

mypiemaster — Fri, 08 May 2015 23:13:20 GMT

When I was overseas, there is something we call AFRICAN LOAN . Give your sister one of those and both of you will have nothing to worry about.

Reply #5

Igamble — Fri, 08 May 2015 23:04:21 GMT

Go and exist yourself from US citizenship category ,that will cost 1350$,then get a EU citizenshp from cheapest avlb.(around 250.000)and THEN give 10million to your sister.

The IRS WILL B HANDICAPPED legally.Savings -about 1million bucks of the tax or more

Reply #4

Raven62 — Fri, 08 May 2015 17:00:59 GMT

There's an old process for disbursing Multimillion Dollar Jackpots, Do you know it?

MTBDET: No.

First, you must Win the Multimillion Dollar Jackpot

Reply #3

RJOh — Fri, 08 May 2015 16:04:33 GMT

But what always gets me is how would i be able to disperse / share my winnings with my family and close friends?

You should ask your family and close friends how they plan to disperse/share their winnings with you if they win. You might be surprised how they plan to do it and also get some ideas about how you should do it too.

You could put all their names on the winning ticket and fill out the proper forms for each to pay their own taxes if they didn't mind how you choose to share it. Th... [ More ]

Reply #2

savagegoose — Fri, 08 May 2015 11:39:55 GMT

this is why you decide who is getting gifts, and either trust fund , or assign them as part of the owners of the winning ticket, before having it cashed out. get your legal and tax obligations ducks in a row before you claim.

Reply #1

Saylorgirl — Fri, 08 May 2015 11:32:53 GMT

This is how I think it plays out. It is a gift to your sister she pays no tax on the money but you do. You are allowed to use your lifetime gift tax which I believe is currently $5.4 million. On the remaining $4.6 million that you are giving your sister there will be an additional $1,840,000 which is a 40% tax and you are the one responsible to pay that tax. Some states have a gift tax they impose also so you would need to take that into consideration. Bottom line your sister gets to keep the 10... [ More ]

How to disperse multi-million dollar winnings?

MTBDET — Fri, 08 May 2015 10:31:33 GMT

We all fantasize about winning big money, and I've gone through scenarios in my head many times. But what always gets me is how would i be able to disperse / share my winnings with my family and close friends?

The way I understand it, I would have to pay the 39.6% federal tax (25% taken of the top), and 4.35% state tax (Michigan)

For all intents and purposes that's 45%. So say I win a big jackpot and take home $25M after 45% taxes. If I give $10M to my sister, does this mean she'd have to... [ More ]