A VERY serious topic.

Reply #41

Teddi — Wed, 18 Nov 2015 02:19:50 GMT

Thanks, Tia! In a way I did. Except I earned every penny working 16-20 hour days. Before the recession I was in the unenviable position of being able to loan (which turned out to mean give) funds to a few family and friends. It was a no brainer. Someone I love needs help, I'm able to help, so I do. I may never fully recover from the way some of them treated me when it was time for them to repay. Or how much pleasure they took in how the recession affected me.

The one (but very positive) thin... [ More ]

Reply #40

Teddi — Wed, 18 Nov 2015 00:03:58 GMT

Sometimes more than that. Consider the Texas man who killed all those people over the weekend being held on a $2.5 million bond. Also consider Kyle Navin who murdered his parents because he wanted their money, bond also at $2.5 million. Now consider the bf of the lottery winner whose bond was set at $3 million / $6 million because of heroin trafficking and guns. You better believe the government will find every single way it can to squeeze money from big lottery winners. Especially when you cons... [ More ]

Reply #39

mypiemaster — Tue, 17 Nov 2015 22:14:51 GMT

It's never a good idea to start handing money out to friends and relatives, just because you won the lottery. If they were truly cool with you when your ass was broke, they should have no problem being cool with you now that you have $millions. After all, what's a few $millions between friends/relatives HUH?.

Reply #38

cbr$ — Tue, 17 Nov 2015 19:22:48 GMT

I Knew a couple who solve this problem. They shared their winning earning as well without the government getting a lot of gift taxes! Both people lived to see to Hundred years old or older. In my opinion they worked a wise plan. In their opinion they feel the government have taxed them once so they saw no reason to let the government to tax them or their family twice on the same money, gift taxes. While the couple was a live they give all their children , grandchildren, great- grandchildren ect.... [ More ]

Reply #37

GoogilyMoogily — Tue, 17 Nov 2015 13:52:53 GMT

example daily 3 because 1000 is easy for visualization

players will spend $1000

in order to win $500

pay 40% taxes to keep $300

pay 25% more if they give it all away as gift tax to have remaining $225

don't gamble what you cannot afford

the state has figured out how to keep 77.5% in some cases

Reply #36

Tialuvslotto — Tue, 17 Nov 2015 12:06:19 GMT

You always give thoughtful and wise advise, Teddi. Its almost like ... you've been there.

Reply #35

Teddi — Tue, 17 Nov 2015 01:09:07 GMT

The best advice is learn from the mistakes of others. And I don't mean like the token Whitaker or Post who gets thrown up in every lottery conversation. 100% of everything that happened to them were their own fault. So take them out of the mix. Learn from athletes, celebrities, even successful lottery winners. The common thread in every single one of their stories is that relationships changed once their net worth made it above 7 figures. Not a single successful or lucky person escaped issue. No... [ More ]

Reply #34

KY Floyd — Mon, 16 Nov 2015 21:26:28 GMT

I wonder if you could form a club after you win

The answer is in the last 3 words I quoted. Anything that's done after you win is done with the money you won.

Last I knew the gift tax was 25%! 40% is completely ridiculous!

The purpose of the gift tax is to prevent people from avoiding the estate tax by just giving their estate away, so the gift tax rate has been the same as the estate tax rate since 1977. The gift tax rate hasn't been less than 35% anytime in the last 80 years, altho... [ More ]

Reply #33

music* — Mon, 16 Nov 2015 19:40:59 GMT

realtorjim, Thank You for The Beatles song, I'm the tax man , it brings back good memories.

Also, thanks for adding to my post about the $14,000.00 per person each tax year. This gift will be tax-free for both the giver and receiver. 40% would be a huge bite by the taxman. Ignorance of the law is no excuse.

Reply #32

HoLeeKau — Sun, 15 Nov 2015 23:33:16 GMT

Last I knew the gift tax was 25%! 40% is completely ridiculous

Reply #31

realtorjim — Sun, 15 Nov 2015 22:16:30 GMT

If you drive a car, I'll tax the street

If you try to sit, I'll tax your seat

If you get too cold I'll tax the heat

If you take a walk, I'll tax your feet

The Beatles

Yes, it is the way the US tax law works. It is not income to the recipient because they did not work for it. It is a gift. Therefore gift tax is in order. Before you try to make someone an employee, trying to circumvent the gift tax, you better check the tax codes because the pay better be within a general guideline... [ More ]

Reply #30

MaximumMillions — Sun, 15 Nov 2015 21:51:30 GMT

Yikes, is that really how the US tax law works?

Why should I pay taxes on giving money away? The person who receives it should have it taxed as income, seems a lot fairer.

Reply #29

zephbe — Sun, 15 Nov 2015 20:34:31 GMT

If they run out, then I guess they'd better budget better next year, or if it was a one-time gift then I guess they can buy lottery tickets and try to win their own jackpot.

Reply #28

Slick Nick — Sun, 15 Nov 2015 11:39:47 GMT

This has crossed my mind many times as well, for the same reasons as some of yours. Regarding the family issue, families are tough at times. Many today are non-functional. I haven't seen what little bit of a family we once had for decades, so I would exclude them right away. They did it to themselves! Regarding security if I won, well I would keep things quiet due to age and wisdom as I think you should. You are alone, plus your Dad. I would find him a better place to live for the both of you, a... [ More ]

Reply #27

HoLeeKau — Sat, 14 Nov 2015 18:50:34 GMT

I think it depends on each person individually. Some will be affected negatively to a great degree and some will be affected positively to a great degree and most will be in the middle.

And I don't think most of us know how someone else will be affected till it actually happens. Most winners seem to be surprised when relatives and friends start using them as ATMs. Most seem surprised when those they've given a million dollars keep coming back for more and get angry when they're cut off.

I... [ More ]

Reply #26

HotLick1 — Sat, 14 Nov 2015 15:35:09 GMT

I think it's a very good question. I would like to share my winnings with family and friends, assuming the jackpot is a large one. And I've thought about the same sorts of issues. I wonder if you could form a club after you win and just make all of your 'recipients' members of the club to get around the pesky gift tax?? I would hate to suddenly be cut off from all the people I'm close to just because I came into money.

Reply #25

JAMORA — Sat, 14 Nov 2015 09:08:13 GMT

I have family who already live as if they've won the lottery...we aren't close, and I I have never asked for a dime....

Case by case .......it would depend on the relationship....

I wouldn't feel obligated.....no....but would definitely lift anyone near me in genuine need...and lavish those who have maintained relationships regardless of hardship..

Reply #24

travelintrucker — Sat, 14 Nov 2015 08:47:16 GMT

I don't. I was speaking in general. We hardly ever speak to each other. If one decided to give money to family and friends, how would it effect them and those around them? That is what I was posing to viewers.

Reply #23

realtorjim — Sat, 14 Nov 2015 04:41:48 GMT

NO NO NO NO NO! NO RjOh NO! NANANANANANANA not listening not listening

Reply #22

realtorjim — Sat, 14 Nov 2015 04:31:31 GMT

Sometimes the best thing you can do for somebody is nothing, travelintrucker. It may seem harsh, but as you have described, a large infusion of cash could end up ruining some people. Why not claim anonymously (thank you SC for this ability!), and help some occasionally, while acting like it will be a hardship but you'll manage. They will appreciate you more than if you gave them a million (not that they wouldn't rather have a million and not give a crap about you).

Reply #21

realtorjim — Sat, 14 Nov 2015 04:21:47 GMT

If you give more than that then you will owe gift taxes of 40%.

Remember, the key word here is YOU. You, as the person giving, will owe the gift tax. Not the person who receives the money. There is a lifetime exclusion amount, but it is small in terms of winning a few hundred mil.

Reply #20

chopperman8238 — Sat, 14 Nov 2015 04:07:12 GMT

SO LUCKY... No Brothers or Sisters or Family its just me.

Will be very simple when my Group Nails it. 27 Payback

Reply #19

PrisonerSix — Sat, 14 Nov 2015 03:55:06 GMT

I think what caused Jack Whittaker's problems was he started thinking since he had all that money, he could do whatever he wanted. According to Wikipedia, when asked why he carried so much cash around, he responded Because I can. I also found a quote from him on azquotes.com that he also once said It doesn't bother me because I can tell everyone to kiss off. No matter how much money you have, that sort of attitude doesn't work. Treating people badly will always come back at you and he learned it... [ More ]

Reply #18

Teddi — Sat, 14 Nov 2015 02:28:13 GMT

Hey travelin', I love your questions and thought process. But I think to answer your questions I would first have to ask, why do you want to help your family? What are your real reservations about? Them being hurt/harassed or you feeling obligated to give money to people who have not treated you well?

Take the word family out of the equation because that word always carries with it the weight of obligation, even if it is undeserved. Also take the words lottery win out of it. If you had no gen... [ More ]

Reply #17

garyo1954 — Fri, 13 Nov 2015 20:57:31 GMT

This is something everyone needs to consider beforehand.

Having sisters who feel the need know everything about your life, up to and including, your diet, how well you're sleeping, and who you are seeing, its kinda hard to keep many secrets; if any at all.

Having a nephew with the same name complicates matters even more. Its not fun to be awakened in the middle of the night by the phone, let alone by some girl crying in the phone over being dumped by some guy, and you don't know who sh... [ More ]

Reply #16

Stack47 — Fri, 13 Nov 2015 20:37:42 GMT

, but I play lottery games for fun.

Reply #15

RJOh — Fri, 13 Nov 2015 18:14:38 GMT

Fortunately most lottery players will never have to cross that bridge except in their dreams.

Reply #14

maximumfun — Fri, 13 Nov 2015 06:53:36 GMT

It would make the most sense to be as anonymous as possible - but with a better-half who thinks that all family needs to know - that leaves me telling them that they will ONLY get annual amounts from us for as long as we BOTH live, we actually have a will in place that gives savings/non-liquid assets to our local food-bank/homeless shelter with the remaining spouse having a life-estate in the property (dh's idea not mine) - we wanted to give them all LOTS of reasons to keep us alive and MINIMUM... [ More ]

Reply #13

mikeintexas — Fri, 13 Nov 2015 03:10:27 GMT

As music* said above, you can give any number of people an annual gift of $14k each. There's also the estate tax exemption of $5.43 million, which would be the max. amount that could be passed down to your heirs tax free, but you can also give away that much during your lifetime. (the annual gifts don't count against that amount as long as they're $14k or under per person) The kicker is you can't double dip on that amount - whatever you give away of that amount will deduct from that total of you... [ More ]

Reply #12

savagegoose — Fri, 13 Nov 2015 01:51:01 GMT

i was thinking a trust fund, with what i would give, prob a mill ea person. and the interest gets paid to ea. no lump sums, no spending, when they die the fund returns to my estate. If they want to disown me, dont take the cash, send the checks back. if i get 3 returned checks in a row , the fund will close and funds come back. i expect to lose a lot of friends bit of theyre based what i give them , who cares.

you know the saying you know who your friends are when the chips are down,

we... [ More ]

Reply #11

SoleWinner21 — Thu, 12 Nov 2015 20:28:07 GMT

Sharing a major jackpot win equally......I would say NO . Since my relatives piss me off a regular basis. Especially my sister. But I would still help them out financially.

Reply #10

GoogilyMoogily — Thu, 12 Nov 2015 18:00:47 GMT

Step 1: win lotto

Pause for several million years until you win.

Step 2: lawyer up. make it clear to your lawyer that you want 3 things

trust fund or some other estate mechanism protect your loots from everybody wanting your loots protect yourself from wasting your loots

Reply #9

zephbe — Thu, 12 Nov 2015 17:44:34 GMT

Get a lawyer to set up trust fund for the kids where the parent has no control of it.

Reply #8

travelintrucker — Thu, 12 Nov 2015 17:43:52 GMT

I'm not the type to ask people for money. I'd accept money, but not ask for it.

Had to pick up in New York. Heading to North Carolina.

Reply #7

travelintrucker — Thu, 12 Nov 2015 17:42:46 GMT

Yes, you can stay anonymous in SC. I was mostly talking about the pitfalls of sharing the windfall with relatives. Would it screw up their lives. Like a lot of people out there, I have relatives that have kids. Some with people they aren't married to. If they got a big chunk of cash all of a sudden, their exes could take them back to court to try to get more money in support. Those are problems they didn't ask for. Not to mention, some of my relatives hang out with some shady people. I wouldn't... [ More ]

Reply #6

zephbe — Thu, 12 Nov 2015 17:40:49 GMT

If your family and friends won a lottery--would they share with you? Don't claim in your name--get a revocable trust. You and Dad be happy. Salvation Army and Food Pantries could use a donation.

Reply #5

travelintrucker — Thu, 12 Nov 2015 17:34:28 GMT

As far as my family that I really don't speak to, I couldn't care less if they wouldn't speak to me anymore for not wanting to give them money. I live with my dad the little time that I am at home. We are like the outcasts of the family.

Reply #4

Coin Toss — Thu, 12 Nov 2015 15:39:24 GMT

travelintrucker,

No, it will never be enough. Whatever you give will be blown and lead to requests for more.

Slap another million on me, you've still got multimillions.

Reply #3

HoLeeKau — Thu, 12 Nov 2015 15:27:29 GMT

I think Jack Whittiker's problems were 99% his own fault. If you broadcast that you carry suitcases full of cash which you leave in your car while you get plastered at strip joints, well of course you're gonna need bodyguards.

Based just on the sketch you gave us, I agree with Tia. Help your dad. Continue to ignore the family you're not close to. I think you can stay anonymous in SC can't you?

I'm not close to any of my family either. Can't even call them family anymore with a straight fac... [ More ]

Reply #2

music* — Thu, 12 Nov 2015 14:05:52 GMT

The two letter word, NO , has to be used. Get together with your CPA, Certified Public Accountant, and discuss your questions with him/her. The IRS limits personal gifts to $14,000.00 per person. If you give more than that then you will owe gift taxes of 40%.

Of course, all this depends on you winning big. Good Luck!!

Keep on reading Lottery Post members and use the Search box which is located at the top right of this page.

Reply #1

Tialuvslotto — Thu, 12 Nov 2015 12:59:29 GMT

These are serious questions and any lottery player should give them some thought.

I would ask you -- why would you want to give people money? Is it because you enjoy their friendship and want to share, or because they don't pay you enough attention and you are trying to buy love? I'm not judging here, but I think every person needs to understand how they think/hope these things will work out.

For me, I would give disabled Dad all the help he needed and ignore the rest of them

A VERY serious topic.

travelintrucker — Thu, 12 Nov 2015 12:50:07 GMT

Sharing lottery winnings with family and friends. Should you or should you not. How much to give? Will it be enough? Will they think it's enough? Would they be able to handle the money they are given? Would they come back for more money? Would they run into financial problems from significant other(s). Would the money put them in danger as far as murder or kidnappings? Would they be able to keep their mouth's shut!? This is something I've thought about for awhile. I'm not close with my family. I... [ More ]