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After a $100 Million jackpot win, how would you deal with family?

Topic closed. 54 replies. Last post 9 years ago by manzplan.

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Westerose
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Posted: June 20, 2007, 3:19 am - IP Logged

Guru101

Yes, sure, you want them to get a piece. But without something drawn up and only a ticket with multiple signatures, each person signing the ticket will get an equal piece.

We can never assume that we will indeed hit a jackpot, but just in case it does happen, nice to know this kind of thing beforehand.  

that's the thing so many people who play to lottery are not ready to win in that respect. They have no idea how to handle it and they get caught up in the whirlwind of it all. Everyone telling them what to do and such. All those Cousin Pearls out there telling them to "Pack up and move to Beverly" and most wins aren't 100 Million after taxes. Which is why we hear those lottery horror stories from time to time. Simply because people arent prepared to win and alot of people have just plain outragous and idiotic expectations of just what a lottery win can and can't do.

I feel sorry for those winning a mere Million or 5.... Everyone thinking they are Daddy GotRocks when a even 5 Million doesn't got that far anymore.

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    Westerose
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    Posted: June 20, 2007, 3:26 am - IP Logged

    If you are married then you have to consider 2 families. lol

     

    Party

    I have one Sister and my Wife has 2 Sisters and One Brother none of which would expect a dime of a lottery win. Not one. My Parents have passed and My Wife's Parents really don't need the Money. Father n Law has steady royalty checks as he writes books. 

    So it's just extended family and friends that we'd have to worry about but not really. Cos most of my extended family doesn't even know where I moved to. Ones that do will die soon enough anyway as they are old and such. They would be happy if I just got down to see them more. Which I would.

    But as you can see from my post a couple back we've a solid plan when we win The lottery and we won't waver from it for anyone.

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      Westerose
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      Posted: June 20, 2007, 4:13 am - IP Logged

      Good idea.  LOL  Believe it or not, I thought of that once!  It would also include a privacy/secrecy agreement.  I wouldn't worry too much about the $12,000 figure, especially if I had $100 million, but I'd be more concerned about word-of-mouth advertising.  "Hi. You probably don't remember me, but we met at your cousin's wedding 17 years ago. I just heard you won a big chunk of money!" 

      In addition to the $12,000 annual exemption you can pay insurance premiums and qualified medical expenses, as well as tuition, so that can really make a difference in someone's life.  Technically it's cheating, but why couldn't I follow someone to a gas station and fill up her gas tank or buy an extra $100 in groceries at the market? Who would know? I doubt if the IRS is hunting around for these small gifts. They don't have the manpower. They're more interested in wealthy people who are trying to reduce total net worth substantially before dying. 

      Thing is you can look at this gift tax thing as a way to help you control your giving. Sure you could buy gas for people and extra groceries and such. But even with 100 Million dollars a person can go overboard and spend too much it has happed IE Jack Whittikar, Most of his winnings went to helping others and often they were ungrateful they didn't get more of it.

      Or look at David Edwards with his standard 1000 tips to waitresses. If you do stuff like that the money can go quickly even 100 Million.

      Winning the Lottery and having a big family and alot of Friends can turn into a curse really fast. Some learn to deal with it and others don't.

      Larry Ross a MM winner from Michigan learned to say no after he helped out a few with Credit Card debts to the tune of 25000 a pop with the same people only to come back in 6 months with an even bigger credit card debt. This happened with more than one person to him. He then started saying No to them. They hated him after that. But do you really think they actually liked him before that or just pretended they did.

      We could all most likely afford to give some of our paychecks to others from time to time. But should we? No. Because we need to put that money aside just in case. There are times when it's good to help people out. But let's face it if you do it too much without thinking it can mess you up no matter how much money you have. Proof is in the past histories of lottery winners.

      Don't you think it would get around that you filled up so and so's gas tank? or so and so's groceries?  Yeah then you would have countless people following you around and wondering why you didn't do that for them. It can get out of hand.

      No matter what if you win a huge sum or even a small sum get use to it if you have a big family and alot of friends you won't within 6 months of winning and at least half of your family if you are lucky will be mad at you.  Make no mistake about that. If you try to fullfill all these people's expectations of what you can do with 100 Million dollars you'll be facing bankruptcy really quick as well.

        csfb's avatar - Lottery-001.jpg

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        Posted: June 21, 2007, 3:09 am - IP Logged

        For immediate family, it's just my sister and myself.  But I have quite a few relatives and friends.  They'll all share, I'm sure.  About 40% will go to a charitable foundation to finance my dream projects.

        Nice to dream ...

                 Sun Smiley             

          psykomo's avatar - animal shark.jpg

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          Posted: June 21, 2007, 3:26 am - IP Logged

          a trust protects all of you and your winnings. It's the only way to go in my opinion regardless if you have a group or not. A trust also limits people from being able to sue you if they say walk on your porch throw down a banana peel and just happen to slip on it. There are so many reason to from a trust beyond dividing money between friends and family.

          To ALL poster's>>>>>>>>>>>>>>>>>>>>>>>PSYKOMO must

          SAY >>>>>>>>?///////////////////GGGGGGGGGeeeeeeeeettttttttt

          eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeliffffffffffffffffffffffeee!

          To manzplan's>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

          CUM to the.....>>>>>>>>>USA US FlagWhite Bounce

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            Posted: June 21, 2007, 8:25 am - IP Logged

            i would pay there motgages and buy others homes buy them all new car's by myself the machion of my dreams. i would buy my mother a life time supply of ciggerettes so she stops smoking all of mine lol, and i would take them all on a cruise, and ask them what they desire and try and make that happen for them. also i would give 10% to charaties of my choice, i would like to think my family would be greatful for the gift and that it would make them all exstatic. we would have the party of all parties that is for sure.

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              Posted: June 21, 2007, 8:53 am - IP Logged

              What family ?

              HA!  That's exactly what I was going to post.

              Posted 4/6:  IL Pick 3 midday and evening until they hit:  555, 347 (str8).


                MissNYC's avatar - diva
                Westchester, New York
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                Posted: June 21, 2007, 11:04 am - IP Logged

                I'll make sure my two grandmothers live in an upscale assisted living apartment so they never have to lift a finger again. My dad has enough money, so I'd probably pay him back what he spent on my college and stuff, then buy him a sick car. I'd set my mom up for life, pay off her house, etc. Hey here's a question. Let's say you get your lump sum, after taxes, you want to give a family member their own lump sum, does that get taxed as well? Either way, that's probably the most I would do for my family, I'm closer with my friends, so I'd probably by them apartments and cars and stuff.

                "If you just keep believing, that dream that you wish will come true"

                Bed

                 

                  spy153's avatar - maren

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                  Posted: June 21, 2007, 11:28 am - IP Logged

                  a trust protects all of you and your winnings. It's the only way to go in my opinion regardless if you have a group or not. A trust also limits people from being able to sue you if they say walk on your porch throw down a banana peel and just happen to slip on it. There are so many reason to from a trust beyond dividing money between friends and family.

                  this is very interesting., How would a trust stop them from suing you ? Don't laugh, I really don't know much about the whole trust thing.

                  voir-vous dans mes reves!Cool

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                    Westerose
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                    Posted: June 21, 2007, 2:07 pm - IP Logged

                    this is very interesting., How would a trust stop them from suing you ? Don't laugh, I really don't know much about the whole trust thing.

                    Well they can and most likely would be able to sue you the individual, However since the trust would not own the property or say a vehicle then the trust on paper owns the lottery winnings although you in reality own the trust, the trust can not be sued if the accident happens on your property they would have to sue you and not the trust. There are other ways of protecting your cash as well that involve things like trusts and corporations and the like. It's a matter of legal definitions and not real world definitions. How things are worded, placed, accounted for effect just how much people can try to screw you over. Claiming a lottery prize as an individual leaves others too many ways to get at your money.

                    Thing is I've seen this principle explained on some other sites much better than I can. If you have a huge lottery win get a very good attorney before you claim anything, a tax advisor as well. Do not claim it in your own name.

                    If you are sharing with family a trust is very important as well. Especially if you are not splitting things down the middle. Anyone you are gonna share with needs to be set before you claim the prize regardless or you and they will pay more taxes.

                    As I've said before most people are not ready to recieve a huge lottery win, discussions like this help in the event these people who are not ready do win. So they don't blow it big time.

                    Best advice for anyone winning is get a lawyers and an advisor, form a trust and set amounts for others up front, tell them that's it, Decide exactly what you want to do the first 2 years with the money, Blow 10% off the top on rediculas things (no helping people, no charities) blow that 10% stupidly so that when that 10% is gone you will hate spending money. 

                    after you get the new house and car etc etc go on some trips and just let the rest of the money sit there for a couple years until you get your head around being very wealthy.

                    But before the lottery win I would suggest that people do what I did a few posts back. Seriously list off everything you are planning to do with a lottery win and include what that would cost. Then add it all up and see how big of a lottery win it would take to achive those things and how much you would have left over.

                    Be very specific and on the high side on how much things would cost. Mine came it at a little over 11 Million dollars and I'm not planning on helping anyone but my own family. People talking about helping cousins and such... well they are gonna need a huge huge win if they really examine the costs of things.

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                      Posted: June 21, 2007, 2:27 pm - IP Logged

                      Pokewith a 10 foot pole

                      Oogle  waiting patiently for my jackpot

                        Tang's avatar - abstract
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                        Posted: June 21, 2007, 2:30 pm - IP Logged

                        I would give each family member $12,000 yearly and take them on a nice vacation or two a year. 

                        After that I would avoid them as much as possible.  I know there is gonna be lots of problems.   

                        More money, more problems.............tell no one!

                        Don't forget to flip those 6's/9's.

                          spy153's avatar - maren

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                          Posted: June 21, 2007, 2:34 pm - IP Logged

                          Thanks for the heads up manzplan.

                          voir-vous dans mes reves!Cool

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                            Westerose
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                            Posted: June 21, 2007, 3:13 pm - IP Logged

                            Thanks for the heads up manzplan.

                            you're welcome, I might come off as a jerk at times, my stance on charities and giving to friends and family etc etc. But I really care what happens to people and if anyone wins big on here I really want them to be prepared. I like seeing lottery success stories on tv not lottery failure stories. So I say things to get people really thinking about just what a windfall can and can not do.

                            I've had this happen a couple times in life. 10k once when I was younger and 70k more recently and yeah people are there to take money when you have it... but not too money around to give to you when you need it.

                            also I've had a few record albums out in my life. Mind you the type of music I do isn't one that will get you millions... bout the same as a normal job more or less and yet people have weird expectations of what you can do for them when you have something like that in your life.

                            With a lottery win people just go crazy no matter the amount the person wins for anything over say 10k to 50k.... when it's a huge lottery win in the 10s of Millions people go stark raving insane and lose all respect for themselves trying to get money from the winner. I find that tasteless. No matter if it's a private individual or a charity.

                            I may or may not donate to charities that is my personal choice however I would like what I donate to remain secret and it be my choice on who I donate to. IE I don't need anyone contacting me with ideas on how to donate. This is why I tell people to say when they win the lottery to say they won't donate to charities as a public stance.. what they do privately is another matter. At least they won't get swamped if they take that public stance. As it's hard to turn people down if you have any sort of heart. Understand? I don't want people ending up like Jack Whittakar and David Edwards. That's all.

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                              Kentucky
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                              Posted: June 21, 2007, 4:29 pm - IP Logged

                              that's the thing so many people who play to lottery are not ready to win in that respect. They have no idea how to handle it and they get caught up in the whirlwind of it all. Everyone telling them what to do and such. All those Cousin Pearls out there telling them to "Pack up and move to Beverly" and most wins aren't 100 Million after taxes. Which is why we hear those lottery horror stories from time to time. Simply because people arent prepared to win and alot of people have just plain outragous and idiotic expectations of just what a lottery win can and can't do.

                              I feel sorry for those winning a mere Million or 5.... Everyone thinking they are Daddy GotRocks when a even 5 Million doesn't got that far anymore.

                              "that's the thing so many people who play to lottery are not ready to win in that respect."

                              When Mega Millions had the estimated $370 million jackpot over 212 million tickets were sold. Nobody knows exactly how many individuals purchased tickets, but if the average wager was $40, over 5 million people took a chance of winning yet there were only 2 winners. Nobody knows how many of those people "were not ready to win" and maybe that's because most people don't expect to win because they know each ticket has a 1 in 175,000,000 chance of winning the jackpot.

                              "They have no idea how to handle it and they get caught up in the whirlwind of it all."

                              Have you ever been to Vegas?

                              I've flown there many times and pretty sure almost everyone on the plane wants to hit a jackpot but while you're landing and see all those billion dollar hotels and casinos, it's pretty obvious that not many people do. I've hit small jackpots ($1000 -$5000) and been with others that have too but I've never heard anybody say they were calling their lawyer or financial advisor. People do get caught up in the whirlwind and do things like going to that show or to that restaurant that was too expensive before hitting the jackpot.

                              "Simply because people arent prepared to win and alot of people have just plain outragous and idiotic expectations of just what a lottery win can and can't do."

                              Even though I was one those estimated 5 million people that bought $40 worth of Mega Million tickets, I don't have any say in how the winners spend their money no more than I would tell an Autoworker how to spend their wages after purchasing a new car.

                              Since I didn't read or hear about thousands of people jumping off bridges and buildings or standing in front of speeding cars, I'm assuming that most lottery players are prepared to lose and believe it's none of their business what the winners do with their jackpot.

                              How much do you wager when the jackpot reaches $100 million and are you “prepared to lose”?