84 Year Old Wins $40M FL LotteryPrev Topic Next Topic

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justxploring

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Aug 9, 2006, 8:42 pm

Hope she took the cash! LOL
Seriously, I think it's great when all these octogenarians win in Florida, but the press releases always say they picked up their check at the lottery in Tallahassee. Nothing is every written about a trust or a lawyer. I'm not an expert on estate tax, but first she's paying a huge amount of federal income tax to the IRS. In 10 years or less she'll be leaving an estate that will be taxed heavily. If she gives her children gifts now, she has to pay gift tax in addition to the income tax.
So my question is, why don't these people form a trust before claiming the money? Does anyone feel that the State has any responsibility to advise people on these matters? I'm not sure how a trust works, but if she has 7 children and a Family Trust claims the $21M lump sum, then wouldn't there just be one income tax when the prize is claimed and then the trust is split by the family? I'm pretty sure Florida will only pay one claimant. I see these stories all the time announcing someone over 80 wins, so I'm just curious.
CSenior

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Aug 9, 2006, 8:59 pm

I definitely agree! I hope she does create a trust. This will eliminate a lot of headaches down the road.
psykomo

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Aug 9, 2006, 9:25 pm

Congrat$$$$$$$$$............$HE!!!!!!!!!!!!!!!!!!!!!!!!!
Who can $HE......"TRUST"??
$HE......."You" Can trust
.........................................................."ME"................my name is PSYKOMO!!!!!!!!!!!!!!!!
LOL.............& be sure to
tell us more about yourself on the .............
LOTTERY POST$$$$$$$$$$$$$$$
bellyache

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Aug 9, 2006, 10:10 pm

Wow, congrats to her! I bet she and her family are very happy. =)
justxploring

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Aug 9, 2006, 11:22 pm

Yes, but that was my question, csenior. Shouldn't that be handled before collecting the money? The lottery just announced she chose the cash and is taking the $21M lump sum payment. In fact, I rarely see a press release on the FL web site that mentions a Trust or LLC and many older people win the large jackpots. I realize she can give away more up to $1 million in her lifetime without paying a gift tax, but that's only one year's interest.
emilyg

50

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Aug 9, 2006, 11:25 pm

Quote: Originally posted by bellyache on Aug 9, 2006
Wow, congrats to her! I bet she and her family are very happy. =)

go granny, go!!!!

love to nibble those micey feet.
CSenior

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Aug 9, 2006, 11:46 pm

Quote: Originally posted by justxploring on Aug 9, 2006
Yes, but that was my question, csenior. Shouldn't that be handled before collecting the money? The lottery just announced she chose the cash and is taking the $21M lump sum payment. In fact, I rarely see a press release on the FL web site that mentions a Trust or LLC and many older people win the large jackpots. I realize she can give away more up to $1 million in her lifetime without paying a gift tax, but that's only one year's interest.

I agree. It should be handled before she accepts the check. But we will never know if she and her family sought out legal and financial advice. Being a transplant from NYC, I have seen many jackpot winners blow thru their winnings and end up deeply in debt after the fact. Sad but true...
konane

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Aug 9, 2006, 11:49 pm

Quote: Originally posted by justxploring on Aug 9, 2006
Hope she took the cash! LOL
Seriously, I think it's great when all these octogenarians win in Florida, but the press releases always say they picked up their check at the lottery in Tallahassee. Nothing is every written about a trust or a lawyer. I'm not an expert on estate tax, but first she's paying a huge amount of federal income tax to the IRS. In 10 years or less she'll be leaving an estate that will be taxed heavily. If she gives her children gifts now, she has to pay gift tax in addition to the income tax.
So my question is, why don't these people form a trust before claiming the money? Does anyone feel that the State has any responsibility to advise people on these matters? I'm not sure how a trust works, but if she has 7 children and a Family Trust claims the $21M lump sum, then wouldn't there just be one income tax when the prize is claimed and then the trust is split by the family? I'm pretty sure Florida will only pay one claimant. I see these stories all the time announcing someone over 80 wins, so I'm just curious.

Does anyone feel that the State has any responsibility to advise people on these matters?"
It's not a function of the state government to act in a capacity to advise anyone what to do with their money such as a trust or investment or otherwise.
People should independently seek out whomever they choose to advise them about handling their money and if the advice is incorrect, it is between those parties.
If they choose to simply put it in the bank without any advice it's their money to do with as they choose.

Congratulations to the winner!! Good for her!!

Have fun and the best of luck to everyone!
Just6ntlc

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Aug 10, 2006, 12:21 pm

I hope she takes cash and plan a trust fun so she doesn't have financial problems later in life. I think people don't do a trust fund because they want it by themselves. The problem with Mr. Whitaker was he got into trouble.
emilyg

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Aug 10, 2006, 12:48 pm

Quote: Originally posted by Just6ntlc on Aug 10, 2006
I hope she takes cash and plan a trust fun so she doesn't have financial problems later in life. I think people don't do a trust fund because they want it by themselves. The problem with Mr. Whitaker was he got into trouble.

at her age - i hope she blows it all on herself!!

love to nibble those micey feet.
konane

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Aug 10, 2006, 1:06 pm

...... and dies with a smile on her face they can't remove!!!

Have fun and the best of luck to everyone!
justxploring

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Aug 10, 2006, 1:48 pm

Quote: Originally posted by emilyg on Aug 10, 2006
at her age - i hope she blows it all on herself!!

With a cash value of over $21 million less fed taxes (no state tax) she'll net about $13 to $14 million.
How many boy-toys can one person use?? LOL
I won't dwell on this subject. It isn't about greed or selfishness, but it also doesn't make sense for money to (a) go into probate or (b) get paid in estate or gift taxes because someone didn't think ahead. It just makes sense for someone 84 to let a trustee and/or her children claim it, since the article said she was going to give it to them anyway. An attorney could make sure she's protected and set her up for life. She's even too old to buy life insurance. If anyone on this site is 84, please don't be offended. My Dad is 92 and danced his heart out only a few years ago. Now his physical and mental health is fading rapidly. It's just a fact of life.
But it's always the winner's choice, so good luck to this lady. Hope she has lots of fun!!

Note to Just6: Good ol' Jack W. was a self made millionaire before he hit the jackpot. Perhaps his fame and new fortune only added salt to the wound, but the wound was already there. He's an alcoholic and his demons are what destroyed him, not his winning ticket.
emilyg

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Aug 10, 2006, 1:55 pm

Quote: Originally posted by justxploring on Aug 10, 2006
With a cash value of over $21 million less fed taxes (no state tax) she'll net about $13 to $14 million.
How many boy-toys can one person use?? LOL
I won't dwell on this subject. It isn't about greed or selfishness, but it also doesn't make sense for money to (a) go into probate or (b) get paid in estate or gift taxes because someone didn't think ahead. It just makes sense for someone 84 to let a trustee and/or her children claim it, since the article said she was going to give it to them anyway. An attorney could make sure she's protected and set her up for life. She's even too old to buy life insurance. If anyone on this site is 84, please don't be offended. My Dad is 92 and danced his heart out only a few years ago. Now his physical and mental health is fading rapidly. It's just a fact of life.
But it's always the winner's choice, so good luck to this lady. Hope she has lots of fun!!

Note to Just6: Good ol' Jack W. was a self made millionaire before he hit the jackpot. Perhaps his fame and new fortune only added salt to the wound, but the wound was already there. He's an alcoholic and his demons are what destroyed him, not his winning ticket.

i was being more practical - better food, travel, maid service, nice home.

love to nibble those micey feet.
konane

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Aug 10, 2006, 2:06 pm

Quote: Originally posted by emilyg on Aug 10, 2006
i was being more practical - better food, travel, maid service, nice home.

Actually I was too. Not having to worry about paying for a potential catastropic illness later in life can likely add quality years to a person's lifespan. Yes, on the maid service, home, landscape service, a personal driver when she needs to go somewhere, etc. I hope she enjoys some of the luxuries this type win can afford.
Himbos are for less practically minded women!!!

Have fun and the best of luck to everyone!
justxploring

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Aug 10, 2006, 2:08 pm

i was being more practical - better food, travel, maid service, nice home.

So was I! LOL What would be wrong if her maid had great pecs? Men do great housework if they're trained properly.
Anyway, she could take the entire net amount and put it in a bank CD and earn over $800,000 every year and never touch the principal. Nobody ever has an obligation to leave money to their children or charity. I was only talking about being responsible.
Not having to worry about paying for a potential catastropic illness later in life can likely add quality years to a person's lifespan.
Konane - I was posting at the same time you were. That's exactly what I was saying. When people are healthy and in a good state of mind is when they need to make financial decisions, not when they get sick. When I said "put the money in a CD" I was only showing the huge amount of interest the money could generate. Putting the money in the bank would not be the practical thing to do. I guess a lot of this has to do with trusting another person. If a woman that age does not have long-term care, a nursing home or assisted living facility could eat up a large portion of her wealth. With millions of dollars, a loving child could provide good in-home care with 24/7 nursing.
What in the world is a Himbo?

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