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Tax Strategy for $150 million jackpot?

Topic closed. 2 replies. Last post 13 years ago by rabbitfoot.

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United States
Member #9606
December 13, 2004
3 Posts
Posted: December 13, 2004, 7:06 pm - IP Logged

Let's say I, a resident of  Texas with no state income tax, win $150 million in Megamillions and have chosen the cash option.

What would be my best options to minimize my immediate and short-term taxes on my winnings?

Primarily I'm wondering if I should perhaps claim the prize as a corporation or a trust of some kind?

I'm also wondering if I should stay in the USA or would I be better off moving to a country with no personal income tax, such as Monaco or Andorra in Europe?

And yes I DO understand that before even claiming the prize I should contact both investment advisors and qualified attorneys.

So that said...what do you think?

    United States
    Member #379
    June 5, 2002
    11296 Posts
    Posted: December 13, 2004, 7:11 pm - IP Logged

    I can't give you tax advice. I can tell you that I live in NY, where we also have to choose in advance how we wish to get paid.

      rabbitfoot's avatar - 8ball

      United States
      Member #620
      August 25, 2002
      205 Posts
      Posted: December 14, 2004, 2:13 pm - IP Logged

      Go to the below site and read this info: "You won the lotto now what?" It won't answer all your questions but it's a start.     http://www.bankrate.com/brm/news/advice/20041108b1.asp

      I play to dream and dream of winning a major jackpot!