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Said & done before but ...

Topic closed. 23 replies. Last post 11 years ago by Chewie.

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Sheba2's avatar - moon2
Newfoundland
Canada
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September 27, 2005
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Posted: October 24, 2005, 7:32 am - IP Logged

What happens if youtake the Annunity and you die? Does your estate then get it.. And then whom ever if anyone gets the eatate Money would have to pay Taxes on that again...

Sheba....

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    Sparta, NJ
    United States
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    July 9, 2005
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    Posted: October 24, 2005, 8:49 am - IP Logged

    What happens if youtake the Annunity and you die? Does your estate then get it.. And then whom ever if anyone gets the eatate Money would have to pay Taxes on that again...

    In my limited knowledge of tax laws, from what I understand, the original money remains yours, and is tranferred by whatever you put on the paperwork you signed when you first won. As in all case, then the tax man commith, and he relishes death! Nothing makes a tax man happier then a dead rich person; especially when the tax keeps on giving. Remember Clinton and retroactive death tax; estates were taxed a year after people died! From what I read, the estate (D-E-A-T-H) tax is due immediately upon death; give or take the quality of your lawyer. Your designee doesn't recieive a lump sum of the annuity, but the death tax man does on the remaining amount. Its just an unscheduled stop in the 30-year tax train; then the train continues to the Treasury.

    This is not to say, taking the cash and running is any better - if you're ,money stays in this country. If you make money on the cash value and then die, they gonna get you also. The difference is, you can take the cash, and put it in a coporate account overseas - like the Bahamas. What is the tax hit, for death, in the Bahama's? Donno!

    Cheers

    |||::> *'`*:-.,_,.-:*''*:--->>> Chewie  <<<---.*''*:-.,_,.-:*''* <:::|||

    I only trust myself - and that's a questionable choice


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      July 11, 2004
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      Posted: October 24, 2005, 9:37 am - IP Logged
         

      What happens if youtake the Annunity and you die? Does your estate then get it.. And then whom ever if anyone gets the eatate Money would have to pay Taxes on that again...

      Consult an estate attorney. It can be liquidated into its cash value like anything else in the estate (real estate, cars, businesses, etc.) that may have accumulated after you spent the lottery prize. And as with the above, there are strategies to mitigate the tax liabilities upon death, such as life insurance, trusts, etc., regardless of whether it's all in cash, in an annuity, or in a mixture of different assets.

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        Sparta, NJ
        United States
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        July 9, 2005
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        Posted: October 24, 2005, 10:08 am - IP Logged
           

        What happens if youtake the Annunity and you die? Does your estate then get it.. And then whom ever if anyone gets the eatate Money would have to pay Taxes on that again...

        Consult an estate attorney. It can be liquidated into its cash value like anything else in the estate (real estate, cars, businesses, etc.) that may have accumulated after you spent the lottery prize. And as with the above, there are strategies to mitigate the tax liabilities upon death, such as life insurance, trusts, etc., regardless of whether it's all in cash, in an annuity, or in a mixture of different assets.

        Correcto mondo!

        The super rich die off every week, and still manage to keep their fortunes. As long as you can afford a super-smart lawyer, you can remain rich.

        Cheers

        |||::> *'`*:-.,_,.-:*''*:--->>> Chewie  <<<---.*''*:-.,_,.-:*''* <:::|||

        I only trust myself - and that's a questionable choice

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          FLORIDA
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          July 1, 2004
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          Posted: October 24, 2005, 2:14 pm - IP Logged

          Jester

          I know the discussion between lump sum or annuity have been discussed over and over before but ....

          I'm just wondering.  (Not trying to bring any controversy.)

           If you were to win the Powerball, Megaball, or whatever lottery, and the winning amount was between $15 million - $30 million.  Would you still take the lump sum or annuity?

           If you are going to take the annuity, is there a point when you will choose lump sum?

           I've wondered about that.  I know when the Powerball is high (like in the $100 million range), I'll definitely would choose the lump sum.  But when it is low in the $15 million -$30 million range, I'm thinking maybe annuity. 

          Hmm. I'm not sure ... what would you do?  I know there is no right or wrong answer.  Just want to know what you would do under those situations.

           

          I'll try to answer this before my power goes out for a day a two thanks to Wilma. The self imposed discipline of the annuity would be nice for me. I'm not the spendy type BUT with a major lottery win I think I'd have trouble explaining to friends and family that they didn't win I did*. The annuity would give me another piece to try to reason with them that the winnings are a finite amount spread over a 26 or 30 year period. Another point  With the annuity there is a dilemma that affects you for length of the time your receiving those checks. You're still tied to the state lottery and all that the freedom of information act for that state  entails.

          If you go lump once you get the wire transfer to that special account you can pretty much cut those apron strings if you will. You can set up your own annuity possibly with the same firm(s) that handle the big two's annuity. If your disciplined enough in the first case. But if you blow that first BIG check if you will, you blew your winnings there are no more checks unlike the annuity.

          Either way you attain a bit of celebrity and the tribulations that come with that. Some handle it well others not as well. Sorry if this was post  was a bit disjointed I've been up most of the night checking doors and windows in preparation for Miss Wilma. Good luck to everyone on Mega Tuesday night. If it goes similar to last years two storms that blew thru here it might be awhile before I get back on the lottery post. Good Morning and God Bless!

           

          * Of course I'd share with my family within reason and of course the friends that gave me shelter after last years two storms..............         

          God bless you and yours ..... stay safe, look to have you back posting soon!!  Blue Angel

          The power is back early thank you FPL! Fortunatly Indian River County hasn't had it as bad as last year. Some damage (again) to north side of house but NO waterfall thru the roof (yet) like last year. I understand Ft Lauderdale got hit hard from a friend. You folks will know more out there that I will for a while. One of the things about riding one of these out is everyone outside the path of the storm knows more about conditions than those in the storm.

           

          Power is flickering so gotta go............. God Bless and good luck all......

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            USA
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            July 15, 2003
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            Posted: October 24, 2005, 9:23 pm - IP Logged

            Lump sum, no matter the jackpot size for me. Think of this, you get married, you then get divored and your collecting annuity. Guess what. Your ex is rich with his/her new spouse. Suppose you get into a car accident, collecting annutiy, guess what, annunity is income and you cannot legally hide income. Meanwhile you can tie up cash however you chose it's yours. Food for thought. Cheers,

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              Sparta, NJ
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              Posted: October 24, 2005, 10:00 pm - IP Logged

              Your arguement has so many holes in it, shooting at it would take weeks. Atleast watch two or three episodes of Matlock reruns before you start practising those concepts. Hint, you don't have to get married, long-term girlfriends have lawyers also.

              Cheers

              |||::> *'`*:-.,_,.-:*''*:--->>> Chewie  <<<---.*''*:-.,_,.-:*''* <:::|||

              I only trust myself - and that's a questionable choice

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                USA
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                Posted: October 24, 2005, 10:08 pm - IP Logged

                My point exactly, still the same reason to go lump sum Chewie. I only mentioned a few examples. Correct me if I am wrong but aren't you for lump sum also?

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                  Sparta, NJ
                  United States
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                  Posted: October 24, 2005, 10:40 pm - IP Logged

                  Yes I am, but it won't help me when an "ex" comes after me, nor will it help if I am sued for grabbing that cutie on the butt.  It won't matter what you chose when you have a car accident and the accident was your fault. You can't hide millions, the IRS won't let you. You turn up with a huge variable on your worth, and the IRS will be on you like smell on sardines. You think you can tie up cash in an investment, and a lwayer can't get at it? Guess again, those things are public records, thus targets. 

                  My reason for choosing cash has nothing to do with your position(s). My reason for cash is to have total control over my future; annuity adds limitations to that control. I have been managing my own financials since I turned 14. Whether I did a great job or not, doesn't matter, I make those decisions. 

                  Annuity or cash, you need something like an LLC to protect you for what you described.

                  Cheers

                  |||::> *'`*:-.,_,.-:*''*:--->>> Chewie  <<<---.*''*:-.,_,.-:*''* <:::|||

                  I only trust myself - and that's a questionable choice