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What amount of money would be fair?

Topic closed. 10 replies. Last post 11 years ago by BobP.

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whodeani's avatar - lightening

United States
Member #2484
October 9, 2003
212 Posts
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Posted: November 30, 2005, 2:13 pm - IP Logged

Hey all,

I am curious to know how other LP members would handle sharing money from a lottery win with family members. When I say lottery win I am not saying a Mega Millions or Powerball type jackpot either. Winning the average jackpot of either of those which is probably somewhere $80 million or even more there would be plenty of money to go around. I am talking about your own state's lotto jackpot (6/49 or similar) where the jackpot might be $5-$10 million. After taxes you would be left with somewhere around $2-$3 million. After you paid some bills, bought a new car or two, and a house etc., how would handle the rest with family? When I say family I don't necessarily mean your spouse and your kids if you are married because they are a given. I am talking about your parents (if still alive) and your siblings.

Me personally my parents would be debt free. I would take care of all their debts and give some additional cash. My siblings and their spouses would get $11,000 each to avoid any paying any gift tax. But as far as taking care of them beyond that I am not sure. You start paying of all their debts (houses and cars) and whatnot, I think that would be good way to see that money disappear. After all, like I said this isn't mega jackpot and you would to have watch where this money was going because it could be gone quick if you were careless. I would want what I have left after I treat myself to some things and share some with family to work for me for a good number of years to come.

What do you think would be fair?


    United States
    Member #17555
    June 22, 2005
    5582 Posts
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    Posted: November 30, 2005, 2:25 pm - IP Logged

    Since I have one sister, I would probably give her, out of say 3 million, a hundred thousand, and my dad, I would give 2 hundred thousand. As for my cousins, they can all go Eff themselves since they wouldn't help me out in the past.

    My mother is in Holland, and deserted me many many moons ago, like when I was 7 years old, so she owes me.

    I would probably give 20 grand to my grandmother in England, who is 100 years old. She lives with my aunt, so the 20 grand would just be for some play money, like if she ever wanted to go to a rock concert, or take her friends out on a rock climbing expedition, skydiving, or something like that.

    And that's about it.

    Oh...I forgot....A couple of grand to the Salvation Army, who pulled my tooth for free. But they probably wouldn't accept it if they knew where the money came from.

    Remember that story a few months ago, when a guy wanted to donate, I forget, I think 5 million to the Salvation Army, but they said they don't accept monies that come from gambling. He won a big jackpot, and just wanted to help the needy. What a bunch of idiots.

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      Alabama
      United States
      Member #17830
      June 27, 2005
      309 Posts
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      Posted: November 30, 2005, 3:12 pm - IP Logged


      whodeani said:

      "I would take care of all their debts and give some additional cash. My siblings and their spouses would get $11,000 each to avoid any paying any gift tax. But as far as taking care of them beyond that I am not sure. You start paying of all their debts (houses and cars) and whatnot, I think that would be good way to see that money disappear... What do you think would be fair?"


      The question that probably needs to be asked first is "what amount of money (beyond the $11,000 you mentioned) can be given to friends and family with minimal tax consequences?" Only a good tax attorney and/or tax accountant can answer that. You'd certainly want to know if paying off their debts can be considered taxable income or is subject to additional gift taxes before you'd start paying them off.

      If you're playing the lottery and think you'd like to share your future winnings with your family, you might want to consider setting up something like an S-Corporation and get a FEIN for your group ahead of time. Some useful information is contained in the following threads:

      For many big winners, it's Lotto Inc. - http://www.lotterypost.com/thread/123643

      Planning On Winning A Jackpot? - http://www.lotterypost.com/thread/122659

      Also search on "Jackpot" and "Winning" to find more information.


       

      Check out the benefits of a Lottery Post Premium Membership!

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        Avatar
        Alabama
        United States
        Member #17830
        June 27, 2005
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        Posted: November 30, 2005, 3:15 pm - IP Logged


        Sorry about the formatting - I didn't turn on the boldface font.

          Fwup's avatar - babylaugh 086.gif

          United States
          Member #3654
          February 9, 2004
          70 Posts
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          Posted: November 30, 2005, 3:25 pm - IP Logged

          pacattack05 said:

          "Remember that story a few months ago, when a guy wanted to donate, I forget, I think 5 million to the Salvation Army, but they said they don't accept monies that come from gambling. He won a big jackpot, and just wanted to help the needy. What a bunch of idiots."

          That's called "integrity". If their organization has an official position against gambling, they can't very well benefit from the proceeds of gambling.

            weshar75's avatar - Lottery-042.jpg
            Mcminnville, Oregon
            United States
            Member #3013
            December 13, 2003
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            Posted: November 30, 2005, 3:34 pm - IP Logged

            I think if I won the lottery I would make my mother debt free and buy some things my brother needed and some things my sister needed and that would be it.  The rest would just sit in the bank after I was debt free too and had a couple of new things like new clothes, new truck, new glasses.  

              luckieStarr's avatar - darven
              philadelphia,PA
              United States
              Member #27080
              November 26, 2005
              507 Posts
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              Posted: November 30, 2005, 5:06 pm - IP Logged

              100 and 110 are good numbers from "how will I share my lottery winnings, oh, please!

              Leaving  Keep It In until It Wins!

                bellyache's avatar - 64x64a9wg

                United States
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                March 18, 2005
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                Posted: December 5, 2005, 9:09 am - IP Logged

                If I won a big jackpot, I would take care of my mother and I would give a little to my sisters, nephews and nieces.

                Dance like no one is watching.

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                  Sparta, NJ
                  United States
                  Member #18331
                  July 9, 2005
                  1977 Posts
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                  Posted: December 5, 2005, 4:24 pm - IP Logged

                  How much you share with relatives, or any one for that matter, should be based on the value of that person to you - before you had money to give away.  Those who stood by me during down times have a greater value then those who showed up at Christmas time for the family dinner.  I had heart surgery a few years ago.  Those who showed an active interest in my health scored tons of points.

                  Cheers

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

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

                    BaristaExpress's avatar - BaristaExpressMX zpsfb0d8b5d.png
                    Magnolia, Delaware
                    United States
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                    July 20, 2005
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                    Posted: December 5, 2005, 8:03 pm - IP Logged

                    How much you share with relatives, or any one for that matter, should be based on the value of that person to you - before you had money to give away.  Those who stood by me during down times have a greater value then those who showed up at Christmas time for the family dinner.  I had heart surgery a few years ago.  Those who showed an active interest in my health scored tons of points.

                    I Agree! 

                    But you can also just give as much as you see fit to give by their past behavior in handling their own money situations. Have they always been a responsible person or have they always been the type to wait until the lights, phone and gas have been turned off before deciding to pay! These are all the things that need to go into consecration before just handing someone thousands and thousands of dollars! I know I'll be doing the trust thing for my family members (half brother, half sister). And it goes without saying my son (he's 3) of course will have a trust, but he also will be reaping the benefits of the money as long as we are all together (his mother, him and I). My daughter will have a trust set up for her and receive a monthly check (interest only check) until she's 35! She's only 18 at the present time, this is why I say 35! I hope by then she'll be a responsible women with her finances! But this is only my view/opinion on things at this point and time, maybe something will change down the road, who knows.

                    Keep dreaming the impossible dream, it just may come true! Thumbs Up

                      BobP's avatar - bobp avatar.png
                      Dump Water Florida
                      United States
                      Member #380
                      June 5, 2002
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                      Posted: December 6, 2005, 1:50 am - IP Logged

                      I'd open a joint checking account in all their names for a million, give them each a check book and leave town.  BobP