Welcome Guest
Log In | Register )
You last visited December 2, 2016, 11:40 pm
All times shown are
Eastern Time (GMT-5:00)

Cash Options of Jackpots

Topic closed. 5 replies. Last post 9 years ago by dvdiva.

Page 1 of 1
PrintE-mailLink
Bradly_60's avatar - disney37
Atlantic Mine, Michigan
United States
Member #416
June 23, 2002
1614 Posts
Offline
Posted: August 25, 2007, 12:25 pm - IP Logged

Well MM is $50 million behind Powerball and MM still has a larger cash jackpot.  Look how much just fooling around with the annuity payments can affect the size of the annuity jackpot.

Brad 

    justxploring's avatar - villiarna
    Wandering Aimlessly
    United States
    Member #25360
    November 5, 2005
    4461 Posts
    Offline
    Posted: August 25, 2007, 12:32 pm - IP Logged

    I agree, but is that because the payout is longer with PB so a smaller annuity would yield more money over 30 years than 26 years?  Obviously it's done on purpose, but I think all jackpots (state or multi-state) should be paid out over 20 years or 25 at the most.  I might be wrong, but I think more people would take annual payments if they offered a shorter term.  Although I might consider annual payments if I won a jackpot, I would never want a graduated annuity at my age and 30 years is a long time.

      fbird's avatar - nw archer.jpg
      White Lake,Mi
      United States
      Member #1495
      May 12, 2003
      5546 Posts
      Offline
      Posted: August 25, 2007, 7:30 pm - IP Logged

      I agree, but is that because the payout is longer with PB so a smaller annuity would yield more money over 30 years than 26 years?  Obviously it's done on purpose, but I think all jackpots (state or multi-state) should be paid out over 20 years or 25 at the most.  I might be wrong, but I think more people would take annual payments if they offered a shorter term.  Although I might consider annual payments if I won a jackpot, I would never want a graduated annuity at my age and 30 years is a long time.

      I Agree!

      plain and simple it all has to do with the greed of the participating states and how big a slice they can get!! 20 years should be a cap on these type of drawings, but as normal, they don't really care what the players want!!!

      VAL

      Don't walk behind me; I may not lead. Don't walk in front of me: I may not follow.

      Just walk beside me and be my friend.

                Albert Camus

        sfilippo's avatar - skull
        Oklahoma
        United States
        Member #33770
        February 24, 2006
        3146 Posts
        Offline
        Posted: August 26, 2007, 7:08 am - IP Logged

        On a positive note - Powerball's anuity can be willed to anyone after the winner is deceased or it can be cashed out at any time through Powerball. It can also be split up part cash and part anuity to multiple parties.

        Smiley Steve

          justxploring's avatar - villiarna
          Wandering Aimlessly
          United States
          Member #25360
          November 5, 2005
          4461 Posts
          Offline
          Posted: August 26, 2007, 12:25 pm - IP Logged

          On another thread, dvdiva brought up what happens to beneficiaries should someone die while taking annual payments.  I never gave this much thought, because most people I know don't have millions of dollars to invest (I wish!) and most annuities people purchase will pay out a lump sum upon death. That's because there isn't a "future" value and it's usually an investment to defer taxes and protect savings from creditors, etc.  Since the PB annuity is a structured settlement, if a winner chooses annual payments and dies, there are often battles with the IRS. The IRS wants to get paid on the market value of the entire prize, even if the beneficiaries don't receive the money. They have 9 months to do this.  I posted a link to a CPA site that gives several examples of court cases where someone passed away before receiving his money from the lottery.  This only applies to estate tax, not income tax.  If estate tax is repealed in 2010 then this won't be an issue, although in 2011 it is supposed to begin again at $1 million (really stupid IMHO)  and has been argued in Congress. 

          Estate tax is double taxation and completely unconstitutional IMHO.  It seems as if someone must plan to die in a certain year, which is so ridiculous.  If you look at the current IRS guidelines, if someone dies today or in 2008, the estate tax is on an inheritance of $2 million or more and in 2009 it increases to $3.5 million, so if you are dying in Dec and just hang on until Jan 1, 2010 your family will inherit everything without any estate tax at all, since it will be repealed that year and there will be no estate tax at all. 

          I can just see it now. A man wins $100 million this year and only takes 2 more payments.  He dies on Christmas 2009.  Everyone is trying to hide the body from neighbors and friends until after New Year's Day so they dress up Pop and tell everyone he's sleeping and take him for drives in the country until Jan 2.

            dvdiva's avatar - 8ball

            United States
            Member #2338
            September 17, 2003
            2063 Posts
            Offline
            Posted: August 26, 2007, 1:52 pm - IP Logged

            But the MSM reports based on the useless annuity value. Bloomberg actually reported that a $300 million powerball was worth more than a $250 million Euromillions pot that was $250 in cash. With poor reporting like that, one has to wonder how wrong the rest of the reports are at Bloomberg. Maybe companies should report their earnings as an annuity value so reporters with poor understanding of math can help inflate corporate valuations.