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After a big multi-million win how long would you wait to come forward?

Topic closed. 63 replies. Last post 9 years ago by applejack78.

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If you won a big multi-million lottery how long would you wait to come forward?

wait? why wait? I'd collect ASAP [ 27 ]  [23.48%]
After I told all my family... [ 2 ]  [1.74%]
Oh...about a week [ 8 ]  [6.96%]
After all the commotion and press died down [ 15 ]  [13.04%]
After I consulted a good tax attorney & lawyer [ 55 ]  [47.83%]
Honestly I never thought about it [ 8 ]  [6.96%]
Total Valid Votes [ 115 ]  
Discarded Votes [ 2 ]  
KyMystikal's avatar - 1457224010054
Florence, Alabama
United States
Member #8658
November 13, 2004
1993 Posts
Offline
Posted: August 3, 2007, 12:06 pm - IP Logged

I voted after the press died down, mainly because that would have been the last factor for me claiming. I'd contact a lawyer first, then tell my family, then get paid!!!!!!

I love doubles and remember, it's just a game!!!!!!

    Avatar
    Coastal Georgia
    United States
    Member #2653
    October 30, 2003
    1866 Posts
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    Posted: August 3, 2007, 2:26 pm - IP Logged

    I thought about this question again when someone won the last big FL jackpot of $33M.  He came forward early Monday morning so obviously he didn't have time to contact an attorney or a financial planner.  However, when I thought about it, since it takes weeks to actually get your money, why not validate your ticket and take off the way he did?  This man's Dad had just passed away so he flew to Cuba to be with his family.  Before he bought the ticket, he didn't even have enough for plane fare or to pay for the funeral, according to the newspaper. Perhaps he used a credit card or borrowed the money, knowing he'd soon have plenty to pay back the loan. (see news article on LP)

    http://www.lotterypost.com/news/159686.htm

    Anyway, I always say "wait a while" but the more I think about it, the 3 or 4 weeks it takes to get the money should be plenty of time to make important financial decisions.  Personally, I would want to move first, but I could always rent a cottage on the beach while I'm making plans.

    I Agree!    I'm glad to see most would get financial advice. At least they said they would....

     

                                   

                  

     

     

      AuntiePat's avatar - animaniacs10
      Just outside of Cleveland, OH
      United States
      Member #54079
      August 3, 2007
      106 Posts
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      Posted: August 3, 2007, 7:07 pm - IP Logged

      Hi all

      Been long time lurker but newly registered poster.  I vowed I was going to allow this topic to die it's natural death, as it provoked a round of phone calls and research on my part that had me off purchasing lottery tickets (but only for a week--LOL)

       

      What my research indicated was that the lottery winner that I had admired most--that guy that won the big Powerball--probably had it all wrong.  He was the one who had actually won the big banana and vowed that he was going to turn it into a billion.  After much discussion with my brother--an accountant AND an attorney and his daughter#1 who works for the Justice Dept in prosecuting attorneys in Trusts/Finances Division for unethical behavior.  Then talking w/ Daughter #2 who is in final stretch for finishing her law degree and who is working in an Estate Planner Attorney's office this summer. . .I have learned some dismaying things.  Tonight's MegaMillions JP is $77 mil--Cash of $44.4 mil--but because the lunp sum tax amount withheld from cash distribution is UNDERWITHHELD--most of us need to take off another 10% to approximate an accurate take home figure--unless many of us are preparing to set up a charitable trust and fund it immediately with a LARGE hunk of our cash winnings.  And we can only pass $2 mil (if we'RE a married couple--$1 mil if single) per heir along and only to our immediate offspring.  If we want to pass more than that along--the Estate Tax is approximately 46%.  And if we want to skip our kids and pass to our grandkids==they have to pay the Estate Tax times 2 generations.    There are other permutations on this depending on the type of trust instrument you establish--which is why it is so important to have really good advice and everything in place BEFORE cashing your ticket.

      My brother asked me what I intended to do with the hypothetical winnings--I told him share with my family--my kid,  and her daughter, my SigOth's 2 kids, my brother and 2 nieces, my elderly parents and my Sig Oth's sisters and a small stipend to my best friend.  So he suggested that I set up a partnership (I don't think this is the Flip Trust) on the tkt so that those that I wanted to have receive money received it before I died (I'm 60 and do not enjoy my parents' good health) as part of the partnership.  I would be able to enjoy the people I love enjoying THEIR money and would substantially reduce taxes. 

      I of course would keep eough money to live off the interest, fix up my house (I have rented apts in my parents' business to people coming out of jails and prisons and I know that if they knew I had won a large sum of money, I would spend the remainder of my life trying to pay off family members' ransoms--I know all I wish to know of those types and unfortunately I would never be able to adequately protect the family that lives locally==so living "low off the hog" would be the only way to go--at least until my parents' pass and I can move..  A few weeks ago many of you suggested on a similar topic that you spread the word that you had a small inheritance or someting of the kind to account for having money--another idea that I thought was really good.

       

      As RJOh knows , we are blessed to live in a state that allows anonymity for the winners, and most of the people I would share this wealth with live out of the area though many are less than a 3 hour drive away.

       

      I'm so sorry--I did not intend to make my 1st post so long, but this is related to the topic that has been consuming me since I first found LP, and that is: once initial taxes have been paid, how do I conserve the remainder?

      Anyway I feel as though I know so many of you and well. . .just sit down and shut up Aunt Pat. . .Thanks and good luck to all of you tonight who live in MM states--if I can't be the winner--I would surely love for one of you to be.

        csfb's avatar - Lottery-001.jpg

        United States
        Member #15309
        May 13, 2005
        307 Posts
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        Posted: August 3, 2007, 9:05 pm - IP Logged

        I'll come forward ASAP. 

        Definitely not in my name but under a Corporation or LLC that will be created.  That Corp or LLC will assign the winnings to a Trust  and the legal representative of the Trust will claim the prize.  I will just be the major Beneficiary of the Trust.  Don't need much really.  But I'll see to it I'll have a say on how the winnings will be spent. 

                 Sun Smiley             

          LuckyLilly's avatar - savy chick.png

          United States
          Member #50124
          February 26, 2007
          601 Posts
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          Posted: August 3, 2007, 9:13 pm - IP Logged

          Hi Auntie Pat.  Welcome, and great first post.  I'm glad you pointed out that the Federal taxes owed on a large jackpot will almost certainly be greater than what is withheld by the lottery commission.  I see too many people planning on having the full 75% (less state taxes) of the cash value, and I think that could get a person into deep financial trouble.

          When I go to USA Mega to see the jackpot analysis, I always calculate 10% of the cash value before I scroll down to my state.  Then I subtract that 10% off whatever's left over after my state takes its cut and that's what I plan on.  I wish USA Mega would report those values in a range (minimum you'll take home being 65% minus your state taxes and maximum you'll take home is 75% minus state taxes) because I think the amounts could be misleading to many.  

            Avatar

            United States
            Member #10720
            January 23, 2005
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            Posted: August 3, 2007, 9:42 pm - IP Logged

            I would take a day off and I'd call the Lottery HQ and tell them when I'll be there (probably the following morning). If the car starts that morning we would roll in to the ELE7VEN or the SuperServe or wherever I got it and validate it and then we would lay in a course for Lawrenceville.

            One time I won something I didn't know until 2 WEEKS later because on the day "after" was Jury Duty and I forgot about the ticket until a routine check.

              Avatar
              Indiana
              United States
              Member #29196
              December 29, 2005
              280 Posts
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              Posted: August 3, 2007, 10:32 pm - IP Logged

              HI AuntiePat from Uncle Jim Smiley

              Ditto LuckyLilly...Great first post from AuntiPat!!!  I too have done a lot of research on the subject and I have to say your post seems to be to be spot on!  My plans are a bit different from yours as I have different concerns from you but for other rteasons I too would like and indeed plan to try to live "low off the hog."

              From what I can tell one can form a Revocable Living Trust and still keep one's name out of the papers.  Information I've found indicates that in most states a Revocable Living Trust is not open to court or public inspection.  Although I did find some language that was a bit contradictory on that point.  It could be that the aforementioned court or public inspection applies only to probate...i.e. after your death.  However, I have found 2 instances where winners of the Hoosier Lottery have formed revocable living trusts and their names were indeed not published so I think that is the way I would plan to go.

              Having said all of that the next best option is of course a Blind Trust but the drawback with that as I see it is that you lose alll control of your assets as they are Blind to you as well!

              If I understand the laws correctly, an LLC or any other type of corporation is a matter of public record.  So for that reason I would not form a Corporation until a significant amount of time had passed and the media hype and public curosity had died down.

              So from my point of view the most important thing would be to form the trust first...and then collect the prize.  While the trust is being formed I'm confident I could find a tax attorney...a financial adviser....and a broker who could help guide me through the process of investing the money in a safe and secure way. 

              I'd gladly loose a month or 2's interest in order to protect my privacy for the rest of my life! 

              Jim 


              Money frees you from doing things you dislike.  Since I dislike doing nearly everything, money is handy.  - Groucho Marx


                United States
                Member #16612
                June 2, 2005
                3493 Posts
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                Posted: August 4, 2007, 2:19 am - IP Logged

                Telling my family is my vote if I ever win a jackpot.

                  TheGameGrl's avatar - character catafly.jpg
                  A long and winding road
                  United States
                  Member #17084
                  June 10, 2005
                  4525 Posts
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                  Posted: August 5, 2007, 9:50 am - IP Logged

                  Its pleasing to see that some folks investigate the options from How to claim the ticket (re:trust, LLC,annony, etc). That is the first stage in helping the tax part. Its true that since the funds arent given the day of the claim, it allows the person to address these issues with the professionals.

                  The 10% additional is not a definite amount as there are tax laws that can bring it down in ones favor. 35% is the average maximum. Some areas of claims require local and state taxes so maybe there in lays the standard 10% above the federal. Who knows. The tax laws are such that its based on how the ticket is claimed, where the ticket is claimed,and what is set up in the financial portfolio. A group claim can send the mitigating factors into another realm of computation.

                  Overall if you are a single ticket holder of the jackpot, then do yourself a favor...stay away from the press, get professional guidance, sign the ticket, and store it in a very safe place for claims.

                  I live in a state that doesnt allow annonymity so coming forth will be at a time when I have all my ducks in a row. Its good to see some smart folks who do know what a responisbility it is to manage the new found wealth.

                  ~~Is it true, Is it kind,Is it necessary. ~~~

                   Thanks be to the giving numbers: 1621,912,119 02014

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                    NY
                    United States
                    Member #23835
                    October 16, 2005
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                    Posted: August 6, 2007, 12:31 pm - IP Logged

                    "Some areas of claims require local and state taxes so maybe there in lays the standard 10% above the federal."

                    The 10% is the difference between the 25% federal withholding and the 35% rate that you can expect will apply to most of a large win. Once you've paid your taxes you can take steps to reduce the taxes on the future income, but as a practical matter you're going to lose the full 35% one way or another. If you don't have to pay it to the IRS it will be because you had deductions for charitable gifts or huge medical bills. Either way,you should expect that 35% plus any state or local taxes will end up in somebody else's pocket.

                      RJOh's avatar - chipmunk
                      mid-Ohio
                      United States
                      Member #9
                      March 24, 2001
                      19825 Posts
                      Online
                      Posted: August 6, 2007, 1:15 pm - IP Logged

                      "As RJOh knows , we are blessed to live in a state that allows anonymity for the winners, and most of the people I would share this wealth with live out of the area though many are less than a 3 hour drive away."
                      by AuntiePat

                      Rather than anonymity, I would move to a neighborhood where the other people had enough money that they wouldn't care about the amount I had.  If I won a lottery jackpot I have no intentions of going into hiding but rather enjoying the life style that can be afforded with that kind of money.  Oprah Winfrey is one of the richest women in the country, yet according to a recent advertisement for one her up coming shows, her neighbors don't even socialize with her unless she makes an effort to meet them.  I have no desire to be the one in the neighborhood everyone comes to when they need money.

                       * you don't need to buy more tickets, just buy a winning ticket * 
                         
                                   Evil Looking       

                        time*treat's avatar - radar

                        United States
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                        March 30, 2005
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                        Posted: August 7, 2007, 5:36 pm - IP Logged

                        That's one of those pre-win commitments that many players make thinking that the lottery spirits love a generous givers and will favor them as the winner.  Do you really believe anyone would give 20% to church,35% to charity and only keep 10% of their winnings for themselves and family?  Once the player wins, the commitment can't be enforce and will be forgotten.

                        Neither the commitment, nor the math can be enforced...

                        1. 20% to the church
                        2. 35% to other charitable causes
                        3. 40% to invest or do as financial advisor's suggest
                        4. 10% for me and my family 
                        5. 5% for incidentals,

                        total 110% ~ Gov't 'lockbox' math Unhappy

                        In neo-conned Amerika, bank robs you.
                        Alcohol, Tobacco, and Firearms should be the name of a convenience store, not a govnoment agency.

                          RJOh's avatar - chipmunk
                          mid-Ohio
                          United States
                          Member #9
                          March 24, 2001
                          19825 Posts
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                          Posted: August 7, 2007, 5:55 pm - IP Logged

                          Neither the commitment, nor the math can be enforced...

                          1. 20% to the church
                          2. 35% to other charitable causes
                          3. 40% to invest or do as financial advisor's suggest
                          4. 10% for me and my family 
                          5. 5% for incidentals,

                          total 110% ~ Gov't 'lockbox' math Unhappy

                          Obviously this was a commitment never meant to be taken seriously by anyone because the 110% distribution didn't include anything to pay the federal and state taxes.

                           * you don't need to buy more tickets, just buy a winning ticket * 
                             
                                       Evil Looking       

                            CCHS13's avatar - chi jpeg.jpg
                            Illinois
                            United States
                            Member #46704
                            September 23, 2006
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                            Posted: August 8, 2007, 1:38 am - IP Logged

                            I have been trying to figure out whats the big deal with all the talk of these lawyers and financial planners, unless one of them can show me how to duck some of those taxes then they cant tell me too much of nothing, at least not for the fees they will charge. I would think they would be a bit jealous that I am about to claim more money than they are worth and Im going to let them tell me what to do for a fee. I'd rather consult a CPA. As far as investing no investment is guaranteed. I like my chances in the Real Estate game. Everyone needs a place to stay and as long as people keep having kids there will always be a need

                            Men Lie Women Lie Numbers Dont


                              United States
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                              June 22, 2005
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                              Posted: August 24, 2007, 10:47 pm - IP Logged

                              I've been waiting for the longest, why would I wait any longer?