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Is it possible to remain anonymous in NJ through a trust or attorney?

Topic closed. 32 replies. Last post 10 years ago by MegaWinner.

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Posted: March 4, 2007, 7:19 pm - IP Logged

What about New York State, does anybody know what the laws are for remaining anonymous? I've looked all over the internet and the official NY lottery site and can't find any information. I'm assuming that it being NY anonymity isn't allowed but what about blind trusts?

A few years back I recall reading that another way to avoid having your name released was to setup a corporation and cash it in that way. A few states out west supposedly allow individuals to do that for this purpose.

    mune4me's avatar - 4eyes
    North Carolina
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    Posted: March 4, 2007, 7:33 pm - IP Logged

    Is it possible to remain anonymous in New Jersey through a trust or attorney after winning the Mega Millions Jackpot?  I have often wondered about this and would like to know so I can be prepared when I win (oh yeah, I WILL win lol!).

    Also, am I right to say that if you have a list of people you want to share the winnings with at the time of claiming the prize, the money will not be "double taxed".  Meaning if I got the money first and paid taxes on it then dispersed the money to the people on my list, then the money would get taxed again when they got it.  As opposed to dividing the money up right from start.

     

    Example.  Jackpot = $5 million cash after 25% tax withholdings.  I want to give $100,000 each to 5 people.  I tell my attorney to have them divide the money up front so that I receive my check for $4.5 million and each person receives their check for $100,000 each. 

     

    Can someone clarify this for me please? 

    Sounds to me like you have one???????????????

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      California
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      Posted: March 4, 2007, 9:13 pm - IP Logged

      What about New York State, does anybody know what the laws are for remaining anonymous? I've looked all over the internet and the official NY lottery site and can't find any information. I'm assuming that it being NY anonymity isn't allowed but what about blind trusts?

      A few years back I recall reading that another way to avoid having your name released was to setup a corporation and cash it in that way. A few states out west supposedly allow individuals to do that for this purpose.

      LottoBuster...in California you can set up a business enity, however the Lottery can require that the business enity name a natural person to claim the winnings.  It is all but impossible to remain anonymous in California.

      As far as blind trusts are concerned, what you would be looking for is a trust where the ownership is unknown.  The most common type of blind trust is one where the person who owns the trust has no say in how the trust invests it's money. This is what politican's typically set up to manage their money while in office.  The blind part is how the money is invested. 

      Does anyone know in a normal trust, what is public record? 

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        Posted: March 4, 2007, 9:54 pm - IP Logged

        If I'm not mistaken I think one of the states where you could do that was either Montana or Wyoming. So if I happen to win the lotto in NY I could setup a corporation in one of those states and under their law cash it in anonymously through the corporation and there's nothing NY could do. This was a few years ago and who knows if the laws have changed?

        The best way around it for me is to have a dynamite Pick 3 or 4 system where you could win the money over time and without the publicity.

          rundown99's avatar - cigar

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          Posted: March 4, 2007, 10:27 pm - IP Logged

          You can NOT remain anonymous in New York or New Jersey.  On the east coast, Delaware, New Hampshire (with the help of a trust), Maryland, and South Carolina are the states where you can remain anonymous.

          Smart lottery winners form trust to claim their winnings.  They send an attorney to the lottery headquarters to claim the prize in trust, so that ONLY the name of the trust is revealed.  And they tell NO ONE, especially relatives.

          If you ever win a lottery and you are single, the only person you should ever marry is someone who was truly in love with you BEFORE you won the jackpot!

            dingo's avatar - lottery of-birth.jpg
            San Jose, California
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            Posted: March 5, 2007, 1:42 am - IP Logged

            Dealing with tax is a big headache for lottery winners who want to give money to their relatives.

             

            I remember one of my co-worker he said, "if I win, I would give you half." Haaahaha Now, I try to figure it out. If this had happened then he would poor than I was, because of the gift tax.

             

            Thank you for open my eyes on this issue. So I've learned that don't make promise about giving money when you have won lottery. It only brings in law suit and tax headache.

             

            Is this why some of lottery winners deplete their fortune so quickly? Giving a chunk of their money and pay tax at the same time. May be learning to say NO to handouts would be my lesson from now on. 

             

              MegaWinner's avatar - Lottery-029.jpg
              New Jersey
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              Posted: March 5, 2007, 9:12 am - IP Logged

              Okay, here is another part to my question.  Lets say you want to give a relative $7 million.  After the 46% estate/gift tax, they are left with $3,780,000 (oh yes, the tax is coming out of their share).  Now, this of course puts them into the highest tax bracket at 35% federal income rate. 

              This is the burning question, do they now have to pay an additional 35% of the $3,780,000 since they are in the highest tax bracket even though uncle sam already thieved 46%, which would effectivly reduce their share by another  $1,323,000 (or 81%) bringing the final total down to $2,457,000?

               

              I hope it doesn't work this way.  I hope I am wrong.  I just can't see the logic of giving 81% of my money away to uncle sam just to help some people out.  I need some clarification on this.

               

              Another question I have is this.  Lets say I have $50 million in the bank at a return of 6% annually or $3,000,000.  Now lets say the interest I gained is my ONLY source of new income for the tax year.  Do I pay the 35% tax on the interest only or do I pay 35% tax on the whole $53,000,000?  I am assuming they only tax the interest because that is my only new income.  Am I right in assuming this? 

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                California
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                Posted: March 5, 2007, 10:18 am - IP Logged

                Okay, here is another part to my question.  Lets say you want to give a relative $7 million.  After the 46% estate/gift tax, they are left with $3,780,000 (oh yes, the tax is coming out of their share).  Now, this of course puts them into the highest tax bracket at 35% federal income rate. 

                This is the burning question, do they now have to pay an additional 35% of the $3,780,000 since they are in the highest tax bracket even though uncle sam already thieved 46%, which would effectivly reduce their share by another  $1,323,000 (or 81%) bringing the final total down to $2,457,000?

                 

                I hope it doesn't work this way.  I hope I am wrong.  I just can't see the logic of giving 81% of my money away to uncle sam just to help some people out.  I need some clarification on this.

                 

                Another question I have is this.  Lets say I have $50 million in the bank at a return of 6% annually or $3,000,000.  Now lets say the interest I gained is my ONLY source of new income for the tax year.  Do I pay the 35% tax on the interest only or do I pay 35% tax on the whole $53,000,000?  I am assuming they only tax the interest because that is my only new income.  Am I right in assuming this? 

                MegaWinner...here are my thoughts on your questions:

                Gift Tax:  The only tax is on what you, the giftor, give.  In fac they, the giftee, don't even report the money they were given.

                Income:  You pay tax on only the intrerest income of $3,000,000.

                GOOD LUCK!!! 

                  MegaWinner's avatar - Lottery-029.jpg
                  New Jersey
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                  Posted: March 5, 2007, 10:12 pm - IP Logged

                  Okay, what about in 2011 when there will be no gift or estate tax.  Does the "giftee" have to report the gift and pay %35 taxes or do the rules remain the same and the "giftee" doesn't report it as income that year and only pays taxes on interest gained the following year.

                  Because if that is the case, I wouldn't give anyone their share until 2011.

                  Is this true?

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                    Posted: March 5, 2007, 10:46 pm - IP Logged

                    You can NOT remain anonymous in New York or New Jersey.  On the east coast, Delaware, New Hampshire (with the help of a trust), Maryland, and South Carolina are the states where you can remain anonymous.

                    Even setting up a blind trust to shield one's identity is illegal in NY? It's the type of law I would expect from this state but I just couldn't find anything on it.

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                      California
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                      Posted: March 6, 2007, 11:29 am - IP Logged

                      Okay, what about in 2011 when there will be no gift or estate tax.  Does the "giftee" have to report the gift and pay %35 taxes or do the rules remain the same and the "giftee" doesn't report it as income that year and only pays taxes on interest gained the following year.

                      Because if that is the case, I wouldn't give anyone their share until 2011.

                      Is this true?

                      MegaWinner...can't answer about the gift and estate tax in 2011.  My opinion, for what is worth, is that it would be tax free all around.  Why would something not be income in one year, and be considered income the next?  But remember we are dealing with the IRS.

                      That is if and this is a very big if, there are no changes to the gift and estate tax for 2011 and beyond.  That remains to be seen.  After all there will be a new sheriff in town come January 2009 and no telling what the inclination will be towards the gift and estate tax.

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                        California
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                        Posted: March 6, 2007, 11:34 am - IP Logged

                        LottoBuster....whether or not you can set up a blind trust in NY is not as critical to remaining anonymous as are the rules of the NY Lottery.  Lotteries are usually pretty specfic about how a claimant is to be identified.  Not sure about NY.

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                          Atlanta
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                          Posted: March 6, 2007, 12:41 pm - IP Logged

                          Is it possible to set up a blind trust in Georgia? I doubt it. But what I don't understand is why they would want to post your name when they know the outcome of lottery winners who are exposed to the world.

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                            California
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                            Posted: March 7, 2007, 11:35 am - IP Logged

                            Is it possible to set up a blind trust in Georgia? I doubt it. But what I don't understand is why they would want to post your name when they know the outcome of lottery winners who are exposed to the world.

                            Seraphim 712...the  reason the lottery wants to post a name is to remove the idea of anything improper.  Just look at last night's postings when the results were delayed.  People thought the fix was in.  Imagine what it would be like if the winner remained unkown.  Oh how conspiracy theorists would have a field day!

                            The lottery officals feel there is a greater good in releasing the names of winners.  If I where in their shoes, I would do the same thing.

                              guesser's avatar - Lottery-017.jpg

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                              Posted: March 7, 2007, 1:06 pm - IP Logged

                              Seraphim 712...the  reason the lottery wants to post a name is to remove the idea of anything improper.  Just look at last night's postings when the results were delayed.  People thought the fix was in.  Imagine what it would be like if the winner remained unkown.  Oh how conspiracy theorists would have a field day!

                              The lottery officals feel there is a greater good in releasing the names of winners.  If I where in their shoes, I would do the same thing.

                              I Agree!

                              Or even now, with California not reporting results yet... it's like an election - 'hanging chads' on my lottery ticket ?

                              Seraphim - Like we keep saying ad nauseum - if you don't like your name being plastered all over the media, it's really simple: don't play.  You buy a ticket, and you have to adhere to the rules.