3 who hit jackpot in S.C. games share advice on the pitfalls of newfound wealth
Just in case you're the first one to win big money in the N.C. Education Lottery that starts Thursday, S.C. lottery winners have some advice:
Be careful about loaning money. Get a tax adviser. And if you owe anyone money, don't let lottery officials put your picture on the Internet.
Don't get them wrong. Three winners interviewed by the Observer are perfectly happy to keep the money, thank you. But they've had their headaches.
One winner says his child support payments doubled, eating into his take. Another says she lost a friend after loaning $800. A third got a big tax bill she wasn't expecting.
Susan Bradley, a Florida-based certified financial planner who has advised lottery winners, said people don't have to win millions for a lottery windfall to change their lives. Even a relatively small jackpot can cause tension with friends and family.
"It isn't as easy as it looks," she said.
Donna Moye: $100,000
Donna Moye won $100,000 in the S.C. lottery. She also lost a friend.Moye, of Gaffney, S.C., says she'd gotten lucky in the lottery several times before that — winning a few hundred dollars here and there. But when she hit the big money just before Thanksgiving 2004 by playing numbers based on birthdays, she decided to celebrate in style.
Moye, who works as a dispatcher for a trucking company, got together with some friends and borrowed her boss's white limousine. They rode to Columbia to collect the winnings.
The money helped Moye crawl out of debt, she said. Moye had closed a money-losing NASCAR collectibles store two years earlier. The lottery money helped her pay remaining bills from the business and pay off credit cards.
She also had a little fun — buying her sister a big-screen television and paying off her Honda CR-V, which she later traded for a truck.
She loaned a close friend $800 and later got into a fight over the money. The two haven't mended fences.
"To me, it wasn't something worth losing a friendship over," she said. "But to him, it was."
Ty Cobb: $100,000
Ty Cobb, a pro fisherman who lives in Carolina Beach, often buys lottery tickets for his buddies when he drives to South Carolina. A ticket he bought three days after his birthday in June 2004 provided his windfall.
His troubles started a little later, when the S.C. Education Lottery put a picture of him grinning and holding a $100,000 check on its Web site.
"My ex-wife caught wind of it," said Cobb. "They doubled my child support payments and they put a $100,000 lien on my home."
Cobb, who owns a small sports bar, says he kept enough money to pay some bills. Cobb says he still buys lottery tickets, but if he wins again, he'll try to keep the news quiet.
3/28/2006
Now, this is funny.....and enlightening:
Be careful about loaning money. Get a tax adviser. And if you owe anyone money, don't let lottery officials put your picture on the Internet.
Don't get them wrong. Three winners interviewed by the Observer are perfectly happy to keep the money, thank you. But they've had their headaches.
One winner says his child support payments doubled, eating into his take. Another says she lost a friend after loaning $800. A third got a big tax bill she wasn't expecting.
Fst...if you lend someone money...do it only because they are very close to you and have always been there for you, when you were down and out. Therefore, you won't worry about them repaying it, especially as you won so much, which enabled you to lend it to them in the fst place.
2nd....Gee...oh I am just really broken hearted over the guy who found his child support payments doubled because of his winnings.....yeah, I am really crying for him.....And what did he expect??? He is afterall 'THE FATHER'....the kids are 'HIS CHILDREN'......shut up and provide......
.
3/28/2006
........and I just know that now, with most of their private information, made public for all the world to see, the winners are of course, still living at their same addresses and work addresses..lololollo especially TY COBB....with all his 'child support payments'....lolololololololol
The WinnersTY COBB
DONNA MOYE
SHIRLEY GREER
Source
I think winners should be able to keep all of their information private. They only want you to take a picture and have your name put out there for everyone so that the lottery pulls in more players. When I win I don't want anyone to know unless I tell them. With all of that said, I probably won't win.
3/28/2006
Hi 'loves2'........now don't say that, you have as much chance as anyone, and you deserve to win ... be positive about it....ckeck your States rules on Lottery winning. I am here in Maryland, and those residents of Maryland and the Nation's Capitol, who win Lottery prizes can do so annonymously, if we so choose.......and no one ever finds out, unless we tell ......
libra926-
I am in the column for remaining annonymous. I think people ask for heartache and chaos when they are just to eager to share the news of their "sudden wealth." If I win PB in D.C. or MM in Md. I will claim it in blind trust and move forward with life!
Hi delS....
I do concurr w/you and it's so nice to have the option....I didn't know you were also a resident....it's fun to have a compatriot on-line.........I think the 'shock' itself is going to throw me. I'd be sitting at home re-reading the winning ticket until it sunk in.....should take 30mins.....lolololololoolool.at least
I think they should be able to keep it anonymous....I feel for the man whose child support doubled..now how is he going to pay it..he only won $100,000.00 and when u r paying child support, that is not much..the 100,000.00 lein on his house makes no sense to me..he must have been behind in his payments..he would have been better off just giving all of the winnings to his kids.
"One winner says his child support payments doubled, eating into his take. Another says she lost a friend after loaning $800. A third got a big tax bill she wasn't expecting."
Common denominator here: not one of them solicited/received professional advice.
The Winners
TY COBB
DONNA MOYE
SHIRLEY GREER
It's funny & ironic that this article advises staying out of the spotlight and then the same 3 people are telling their tales to the press! At least that's the way I see it!
"You can have a loss of identity, because now you're one of those people with money," Bradley said.
Hmm..maybe that's why I never used my BA in Psychology! As Keenan Wynn said to Bob Newhart in one of the funniest episodes ever on television "It's all a crock!" I wonder if one of the homeless people who are invisible to most of society agree with this statement.
This article isn't even talking about people who won $50 million. $100,000 isn't that much even after taxes. It would help me quite a bit by paying medical bills and credit card debt, and giving me something to put into a retirement account, but why anyone would think there is so much extra to share is puzzling. A lot of people make $100,000 a year and aren't expected to just hand out their paychecks. I suppose it's because it's money you won instead of earned.
OK so after reading some of this... I thought that if you win the lottery and are not in arrears with your child support since its not a "earned income" that they could not take any to Child Support..is this not so? In Ohio I know that we are able to keep ourselves anonymous and that is a beig relief! I mean you all know as well as I do that we would have relatives coming out of the wood work!! Any one and everyone standing there thinking that you owe them something.
NOPE not me! I mean dont get me wrong I would show some love to my family but on my own terms not theirs!
On another topic, The winners that hit the mega here in Lyons claimed there funds in a Blind Trust. I have done a little reading on this but I dont really understand what it is that they did and or why? Can someone explain to me in detail about that? I know that its a 3rd party but what is the scoop??
OK so after reading some of this... I thought that if you win the lottery and are not in arrears with your child support since its not a "earned income" that they could not take any to Child Support..is this not so? In Ohio I know that we are able to keep ourselves anonymous and that is a beig relief! I mean you all know as well as I do that we would have relatives coming out of the wood work!! Any one and everyone standing there thinking that you owe them something.
NOPE not me! I mean dont get me wrong I would show some love to my family but on my own terms not theirs!
On another topic, The winners that hit the mega here in Lyons claimed there funds in a Blind Trust. I have done a little reading on this but I dont really understand what it is that they did and or why? Can someone explain to me in detail about that? I know that its a 3rd party but what is the scoop??
Sassy, Welcome aboard.....
You just get the legal advice first, which these people didn't.
The lawyer can claim the funds on your behalf as a trust if this is acceptable in your state.
Easy, but so many don't take advantage....thus you get what we got in this hear case.
"The only poor choice she made was not seeking tax shelter for a large win. That is suicidal." DoubleDown
Agree. I think one problem is that people often think that the lottery deducts the total taxes due, which isn't true. I believe the maximum personal federal tax for 2006 is 35% and the FL lottery deducts 25% (some states take out 28%) Then there's state tax too, which in some states can vary depending on income. (we don't have one) I'm not sure if lottery winners can take advantage of income averaging, but that's what a good accountant or tax attorney would know.
"the 100,000.00 lein on his house makes no sense to me.." Littleoldlady
I thought the same thing when I read the article. The lien is probably temporary. Maybe he was hiding income or, as you said, behind in his payments. I can't say I feel sorry for him, because we don't know if he was a deadbeat Dad or his wife is being vindictive. In any case, there is a way he could have put it in a trust for his children, but it sounds as if he was being selfish. When they wrote his child support doubled, they might mean it went from $150 a month to $300 a month. The statement really doesn't mean anything without indicating an amount.
Great story! Enjoyed the fact that it was your average folks with average misconceptions. We all carry them from time to time thru life. Hindsight is always 20/20. As justexploring indicated, the facts are vague and open to interpretation. The Part that is perturbing is that a person doesnt GET the fact that the government will and no doubt monitors winners closer, come claim time. Be wise and place that 10% that will ultimately need paid, into some 6 month term investment CD so that when it is time to pay the piper, the money is there. (footnote : that is 10% above the 25% that will get taken out come issuance time, equating to 35% in total to the good old Uncle same)
The old saying that a fool and his money soon part is part of the lottery speel. My state post on its website the advisal that large jackpot winners seek financial and tax advise prior to claiming. Its not a rule so much as a suggestion for them. :)
" I can't say I feel sorry for him, because we don't know if he was a deadbeat Dad or his wife is being vindictive. "
Dead being the key word here: Ty Cobb died in 1961. I've heard of a death tax, but geeezzz...
The best rule of thumb that I use(well maybe someday) is to take the advertised jackpot and divide by 4.Say the Powerball jackpot is 100 million.Ok,so I win and take the lump sum.Now I get approximentally 50% of the total.Next the estimated taxes,both federal and state are about 50%.This is a rough estimate,with any error on the side of more money to me instead of the taxman.So looking at a 100 million jackpot,I see 25 million after it's all said and done.Any small percentage over the 25% is "fun money".
About 18 years ago a local man won an Illinois lottery jackpot, about 2.8 million,which spread out over 20 years was about $140,000 a year. Not great, but an okay sum of money. He tried his best to remain anonymous, because he was already going through bankruptcy proceedings and was trying to finish it up before he claimed the money so that he wouldn't have to pay his debts. The only person other than family that he told was their priest, who promptly gossiped it to the whole community. Somebody got ticked off(and rightfully so) that he was trying to squirm his way out of a debt that he legally and morally owed, and tipped off the authorities. He then had to pay his bills, which he damn well should have payed anyways. Now on the downside of this, him and his wife had just had a baby before the win, and received a kidnapping threat. Just an example of why someone shouldn't be allowed to remain anonymous, and a reason why they should be allowed to. Kind of a damned if you do, damned if you don't situation for the lawmakers in the anonymity rules. Just imagine a kidnapping threat on your child over such a relatively measly sum of money. I'm not saying I wouldn't love an extra 140k every year, but damn. There are a whole lot of nuts in the world. And quite honestly, if your "friends" and relatives are that damn greedy, you are better off without them. I personally have no illusions about my family. We don't have money and everyone is already jealous of one another over stupid, petty little things. When my grandfather's brother died, my aunt was mad as hell because he left his money to my grandfather. She thought that his nieces and nephews should have received the money(i.e. her). I was going to buy tickets for one of the $300 million-plus jackpots once and my aunt asked me what I would do if I won. I said " Probably give everyone in the family a million apiece, and then buy a G-IV private jet." I was really just joking about the jet, but she informed me I should give everyone in the family more money, and that she wasn't that greedy. I tried to explain the inherent hypocrisy in what she had just said, but she couldn't grasp the obvious. So if I ever do win they are going to get even less, if anything at all. So as you can see you don't even actually have to win the money for your relatives to be greedy jackasses. I always think ahead that's why I qualified my statement with a probably. Never promise anybody, anything. Or you will probably end up in court over someones jealousy.
Nah I promise my enemies they wont get a dime! And they can dern well take me to court on that promise!As to the rest of the story....its debatable as Im sure thru the years some embellishment has been added. Priests do not divulge confessions even under a court order, so there in lays the flaw to that story. It may well be that the guy had fallen upon hard times and been going thru bankruptcy ( which isnt a moral issue, its a financial issue). The one family that recently won the PB fessed up to bankrupcy prior and under the ruling they are *forgiven* of the debts and dont have to pay the creditors/financial institutions. Depending on how it was filed weighs heavily on what does need paid back. If the guy hadnt claimed the winning til after the judge ruled , no amount of squeeling will do any good. He was legimate in his claim and has the right to file based on the laws of bankruptcy.
I didn't say he confessed it to the priest, I said that he told him. As far as what a priest should or shouldn't do, I guess in your little world priests never molest little kids. Because, after all, they are not supposed to do that either. And to your theory of embellishment, my best friend dated the guys daughter, as did I a year later. So unless his daughter was embellishing the story, it's true. I guess there is the flaw in your flawed attempt at deconstructionist logic. And by the way it's spelled squealed. Maybe you should spend some time studying a third grade spelling list, and then familiarize yourself with reading comprehension. I stated that he was going through bankruptcy proceedings, not had went through the proceedings. And if you think that someone that borrows a bunch of money to start a business, fails,and then is trying to avoid paying back the debt while he is sitting with a 2.8 million dollar ticket isn't a moral issue.... well, that speaks volumes about your character, or lack thereof.
" I can't say I feel sorry for him, because we don't know if he was a deadbeat Dad or his wife is being vindictive. "
Dead being the key word here: Ty Cobb died in 1961. I've heard of a death tax, but geeezzz...
He was probably named after a famous baseball player because the night he was conceived, his father finally made it past first base!
" I can't say I feel sorry for him, because we don't know if he was a deadbeat Dad or his wife is being vindictive. "
Dead being the key word here: Ty Cobb died in 1961. I've heard of a death tax, but geeezzz...
He was probably named after a famous baseball player because the night he was conceived, his father finally made it past first base!
I say it all the time. Go to a state where you can be anonymous.
I currently live in charlotte, NC and if you win you have to atleast give your name and what city you are from. It's the same way in SC. Bummer
. They are already ruining it for me even before our lottery starts. But I have no family here so I may just make it out with the hair on my head. 
$100,000 or even $500,000 is not a tremendous amount of money in the age of Mega Millions. The surprising thing is the sense of entitlement people have from a lottery winner, as opposed to people who make their money in other ways.
>Her surprise came in the form of a big tax bill. Greer said she had set aside some money for taxes, but the bill came in higher than she expected.
What's with this? Property tax? Did they tax her the special lottery winners rate?
>She told the tale of one lottery recipient who won $5 million and gave each of her siblings $50,000. The siblings resented that the winner gave them a relatively small share.
Good to know. I can just as easily be resented for giving nothing and save myself $100,000.
3/28/2006
Hi 'loves2'........now don't say that, you have as much chance as anyone, and you deserve to win ... be positive about it....ckeck your States rules on Lottery winning. I am here in Maryland, and those residents of Maryland and the Nation's Capitol, who win Lottery prizes can do so annonymously, if we so choose.......and no one ever finds out, unless we tell ......
Last time I checked DC Lottery requires those winning $5000 or more to have their picture taken when they claim the prize. They then put those pictures on their website.
I am not aware of MD have the right to remain anonymous. Do you know where I could confirm either of these? I'm not saying you are wrong, but I am curious.
I didn't say he confessed it to the priest, I said that he told him. As far as what a priest should or shouldn't do, I guess in your little world priests never molest little kids. Because, after all, they are not supposed to do that either. And to your theory of embellishment, my best friend dated the guys daughter, as did I a year later. So unless his daughter was embellishing the story, it's true. I guess there is the flaw in your flawed attempt at deconstructionist logic. And by the way it's spelled squealed. Maybe you should spend some time studying a third grade spelling list, and then familiarize yourself with reading comprehension. I stated that he was going through bankruptcy proceedings, not had went through the proceedings. And if you think that someone that borrows a bunch of money to start a business, fails,and then is trying to avoid paying back the debt while he is sitting with a 2.8 million dollar ticket isn't a moral issue.... well, that speaks volumes about your character, or lack thereof.
Welcome to the board newcomer!
Please read th rules Todd has created .
Personal character attacks are less then welcoming here so do take care to refrain from them.
I didn't say he confessed it to the priest, I said that he told him. As far as what a priest should or shouldn't do, I guess in your little world priests never molest little kids. Because, after all, they are not supposed to do that either. And to your theory of embellishment, my best friend dated the guys daughter, as did I a year later. So unless his daughter was embellishing the story, it's true. I guess there is the flaw in your flawed attempt at deconstructionist logic. And by the way it's spelled squealed. Maybe you should spend some time studying a third grade spelling list, and then familiarize yourself with reading comprehension. I stated that he was going through bankruptcy proceedings, not had went through the proceedings. And if you think that someone that borrows a bunch of money to start a business, fails,and then is trying to avoid paying back the debt while he is sitting with a 2.8 million dollar ticket isn't a moral issue.... well, that speaks volumes about your character, or lack thereof.
Welcome to the board newcomer!
Please read th rules Todd has created .
Personal character attacks are less then welcoming here so do take care to refrain from them.
We all can agree to disagree without insulting remarks.
DD
The only way 2 hide your idenity
is 2 give your lucky ticket 2 your
grandma/grandpa n have them
go in and collect your winnings,
lucky me i have honest grand-
parents that would love 4 me 2
live a comfortable lifestyle with
me n my family!
I would far rather have a winning ticket without privacy than a loosing one with privacy. Still the big thing to check for wins larger than this is if the state allows trusts to claim the ticket. I know Washington state allows it but Oregon doesn't. All state run lotteries have links to the laws that they are based on and in reading those you can tell what they allow or not.
Ultimately it depends on how much you win. Smaller amounts can easily hide their identity if they are smart. A giant jackpot like the first pot that breaks 400 million if one person wins they can forget hiding anything.
I really don't think you can hide or be anonymous to family and friends, which seems to be where the trouble is. It's easy to say "no way' to a stranger, a little harder when someone you know is in need or claims they are in need. The key is being decisive and tough minded about what you will do and won't do with the money and sticking to your guns.
I really don't think you can hide or be anonymous to family and friends, which seems to be where the trouble is. It's easy to say "no way' to a stranger, a little harder when someone you know is in need or claims they are in need. The key is being decisive and tough minded about what you will do and won't do with the money and sticking to your guns.
Completely agree. I've already told my family who I'll be sharing with. (NEVER mentioned an amount) My family (husband, children) will obviously benefit the most. My church will be given my 10%. (good tax write-off BTW) Then my two sisters and parents will be the others. (hubby's dad and brother are already VERY well off, but I'll leave it up to him if he wants to share)
Other than that....nothing. Someone here said it best when they said "My long lost relatives....can stay lost"
As for childsupport....both me and my husband have kids with our ex's that is SHARED custody. We all have them equal amount of time. We're claiming in a blind trust not because we dont' want to take care of the kids, 'cause we can do that when they're with us, but because we don't want to take care of our ex's. (kids will be taken care of now and with trust funds)
I think the main thing to do when you win a jackpot, is to know ahead of time what to do. There is no "winging it" when it comes to large amounts of money. I already know that I wont pay for a house outright the first year. I need that deductible! I'll be giving to charity....I need that deductible too!
Seek profession advise. Don't just pick someone out in a book either. Research them!!!
Just my humble opinion.
The only way 2 hide your idenity
is 2 give your lucky ticket 2 your
grandma/grandpa n have them
go in and collect your winnings,
lucky me i have honest grand-
parents that would love 4 me 2
live a comfortable lifestyle with
me n my family!
Bad, bad move! Do you realize that any amount your grandma/grandpa gave you beyond $12,000 a year would be subject to gift taxes in addition to income taxes? And that all they'd be able to give everyone altogether in their lifetime beyond the $12,000 a year per person would be one million dollars? Anything beyond that is subject to an additional tax of 35-46%. And if your parents are still alive, it is even worse. The money given to grandchildren would also be subject to a generation-skipping tax, which is 55%!
And it gets even worse. What if your grandparents died before changing their wills? They might not have left any of their estate to you. No, you do not want anyone else to claim the money for you of any large win.
Disclaimer: I am neither an attorney nor an accountant. Anyone who actually receives a large lottery win would need to see both.
Disclaimer: I am neither an attorney nor an accountant. Anyone who actually receives a large lottery win would need to see both.
LMAO smart move. lol
The only way 2 hide your idenity
is 2 give your lucky ticket 2 your
grandma/grandpa n have them
go in and collect your winnings,
lucky me i have honest grand-
parents that would love 4 me 2
live a comfortable lifestyle with
me n my family!
Bad, bad move! Do you realize that any amount your grandma/grandpa gave you beyond $12,000 a year would be subject to gift taxes in addition to income taxes? And that all they'd be able to give everyone altogether in their lifetime beyond the $12,000 a year per person would be one million dollars? Anything beyond that is subject to an additional tax of 35-46%. And if your parents are still alive, it is even worse. The money given to grandchildren would also be subject to a generation-skipping tax, which is 55%!
And it gets even worse. What if your grandparents died before changing their wills? They might not have left any of their estate to you. No, you do not want anyone else to claim the money for you of any large win.
Disclaimer: I am neither an attorney nor an accountant. Anyone who actually receives a large lottery win would need to see both.
IT ALL DEPENDS ON WHAT STATE
YOU WIN BIG AT!!!! ME N MY
FAMILY WILL ALL BE
COUNTING OUR $$an>
Dumars798 said:
IT ALL DEPENDS ON WHAT STATE YOU WIN BIG AT!!!! ME N MY FAMILY WILL BE COUNTING OUR $$an>
_______________________
Mmmmmmm, sorry. It does not depend upon the state. The gift tax and generation skipping taxes to which I refer are federal. I suggest you consult the IRS website and do an appropriate search. http://www.irs.gov/
and the way to get around the gift tax is to hire that family member to do chores (like picking up two leaves on the fourth Tuesday of February) . Now that we resolved the ever so debatable rule on gift taxing, just hire the person, create a trust , do what ya must, but by golly keep uncle sams hands out of the fortune!
Methinks the IRS is smart enough to know that paying someone a million or several million dollars a year for unskilled labor is a sham and the person who tries would be treated accordingly. And even if it did work, that money would be taxed again as salary, so it would be taxed twice. And if the amount was great enough, that would also be in the 24-35% marginal tax bracket, after the grandparents had already paid 25-35% tax on the amount. Plus the "employer" and "employee" would have to pay social security taxes on the amount. So where would be the gain?
I agree that there would probably be ways to hire relatives and pay them amounts larger than the gift tax exclusion and still have it legal. But in most cases, that would likely only work for much smaller jackpots, IMHO. If we are talking about just a one million dollar jackpot, for instance, this might have some possibilities. But for a jackpot like the MM or PB, I just don't think it would fly.
There would still remain the problem of transferring remaining assets upon the grandparents death. Just how do you propose getting around the estate tax?
and the way to get around the gift tax is to hire that family member to do chores (like picking up two leaves on the fourth Tuesday of February) . Now that we resolved the ever so debatable rule on gift taxing, just hire the person, create a trust , do what ya must, but by golly keep uncle sams hands out of the fortune!
lol, i agree with u the
gamegrl.
There are reasons that tax advisors exist. Family Trust, Corporate Trust, Create a tax shelter. The FACTS are, Rockerfeller, Brachs, and Even Donald Trump himself hires family. And they do it to keep the money in the family. The US GOVT doesnt intercede on corporate america and say what Maximum amount an employer pays, They only set the minimum wage. So long as a person files and doesnt hide income they are somewhat safe from audits....
Each state is different so I cant say what tax bracket would transpire in the worse case scenario of no will or estate planning.
The only way 2 hide your idenity
is 2 give your lucky ticket 2 your
grandma/grandpa n have them
go in and collect your winnings,
lucky me i have honest grand-
parents that would love 4 me 2
live a comfortable lifestyle with
me n my family!
Some people claim the money using a trust or a LLC. It is possible to find out who is behind those in most cases, but it takes more work than just picking up a newspaper or watching TV.
PrisonerSix
There are reasons that tax advisors exist. Family Trust, Corporate Trust, Create a tax shelter. The FACTS are, Rockerfeller, Brachs, and Even Donald Trump himself hires family. And they do it to keep the money in the family. The US GOVT doesnt intercede on corporate america and say what Maximum amount an employer pays, They only set the minimum wage. So long as a person files and doesnt hide income they are somewhat safe from audits....
Each state is different so I cant say what tax bracket would transpire in the worse case scenario of no will or estate planning.
Brachs...the candy people?
The only way 2 hide your idenity
is 2 give your lucky ticket 2 your
grandma/grandpa n have them
go in and collect your winnings,
lucky me i have honest grand-
parents that would love 4 me 2
live a comfortable lifestyle with
me n my family!
Some people claim the money using a trust or a LLC. It is possible to find out who is behind those in most cases, but it takes more work than just picking up a newspaper or watching TV.
PrisonerSix
If you use a Delaware LLC the names are kept private. It doesn't matter what state you win in to Delaware. If you really want to ensure secrecy, hire an incorporation service to form the LLC and then hire a lawyer or accountant to claim the prize on behalf of such an agency. Pay them the fee (which would be a deductable business expense), then the profits pass through to the owners. You could reassign or add additional owners at later dates without the gift tax. I've worked in the incorporation industry before and it is amazing what you can do with Delaware LLC's.
ps: I'm not a lawyer or accountant.
The only way 2 hide your idenity
is 2 give your lucky ticket 2 your
grandma/grandpa n have them
go in and collect your winnings,
lucky me i have honest grand-
parents that would love 4 me 2
live a comfortable lifestyle with
me n my family!
Some people claim the money using a trust or a LLC. It is possible to find out who is behind those in most cases, but it takes more work than just picking up a newspaper or watching TV.
PrisonerSix
If you use a Delaware LLC the names are kept private. It doesn't matter what state you win in to Delaware. If you really want to ensure secrecy, hire an incorporation service to form the LLC and then hire a lawyer or accountant to claim the prize on behalf of such an agency. Pay them the fee (which would be a deductable business expense), then the profits pass through to the owners. You could reassign or add additional owners at later dates without the gift tax. I've worked in the incorporation industry before and it is amazing what you can do with Delaware LLC's.
ps: I'm not a lawyer or accountant.
You mean if I win Mega Millions in NY or Powerball in Connecticut I should get help from Delaware?
It's one way you could do it. On the charter document (the paperwork that actually forms the LLC with the Secretary of State), there are only three required pieces of information:
1) The name of the LLC
2) The name and address of its registered agent (a person or company with a physical location in Delaware that can be served with any legal business by the state). You can be your own agent, but if you are doing this for privacy, you will want to pay a fee to a service.
3) Signature of the incorporator, who need not be the person(s) who actually own the LLC.
Delaware charges an LLC an annual fee of $200, and a good registered agent will charge $50 per year to maintain the address on your behalf (make sure its a company that will not raise your rates, send me a private message if you need recommendations). The fees to file the company through a service should be in the $450 range, with same or next day turnaround. I've seen LLC's formed in under 1 hour by the state, they are quick. If you are not a resident and do no business in Delaware, you will NOT pay Delaware income tax at all. You also do not need to be a resident or have a Delaware (or USA for that matter) bank account.
I once again state that I am not an attorney or accountant, but I have worked in this industry for several years.