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David kills Goliath in Michigan will keep promise to friends!

Topic closed. 46 replies. Last post 9 years ago by AuntiePat.

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bigato1010's avatar - army

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Posted: April 3, 2008, 9:50 am - IP Logged

Today was my day off i was watching the news cast fox 2 channel and i got the chance to see the newest megamillion winner name David. He is a 60yr old man from Livonia who purchased his ticket in Redford township. According to him, he has four friends that he made promised that if he wins the megamillion, each will recieve 1million. David Congratulation to you i think you have a good heart . What do you think ?   

    Uff Da!'s avatar - InCelebration 001.jpg
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    Posted: April 3, 2008, 10:25 am - IP Logged

    What do I think?  That he will probably be very surprised when he learns what his gift taxes will be. 

    If he made the promise with knowledge about the tax implications, then I see no problem.  He has enough money to do it.  But if he was unaware, he might have done things differently.

      justxploring's avatar - villiarna
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      Posted: April 3, 2008, 12:47 pm - IP Logged

      What do I think?  That he will probably be very surprised when he learns what his gift taxes will be. 

      If he made the promise with knowledge about the tax implications, then I see no problem.  He has enough money to do it.  But if he was unaware, he might have done things differently.

      Uff Da -

      (A)  Maybe he should just wait and jump off a tall building in 2010.   Razz   If he's married, he might want to transfer some of his money to his wife.  Then I believe they can both give away $1 million.   I think there has to be some way around it.   But I agree with you that most people don't think about the 45% they'll have to pay in gift tax over the exemption.  It's supposed to drop to 35%, but who knows what the government will do year after year?  That said, you can't take it with you, and he'll still have plenty of money left, but good estate planning might save him a lot of taxes.

      (B) Never say something publicly unless you mean it!  Yes Nod

        rubberbandman's avatar - Spawn Classic.jpg
        mn
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        Posted: April 3, 2008, 1:09 pm - IP Logged

        With 135 million dollars, I think that this person will handle 35-45% gift taxes.

        Gift taxes are an interesting subject matter; why don't people just give $9,999 multiple times and just avoid the tax, what is somebody going to do with a million dollars immediately anyway that is so important, unless it's some kind of medical emergency, and even then you can make systematic payments? 

        "Gee Brain, what do you want to do tonight?"
        "The same thing we do every night, Pinky- try to take over the world."

          Coin Toss's avatar - shape barbed.jpg
          Zeta Reticuli Star System
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          Posted: April 3, 2008, 1:11 pm - IP Logged

          On one of the lotterey doucmentaries a jackpot winner was asked about giving money to other people and he said he had given several people a million dollars each - and bar none, every single one of them came back asking for more.

          Those who run the lotteries love it when players look for consistency in something that's designed not to have any.

          Lep

          There is one and only one 'proven' system, and that is to book the action. No matter the game, let the players pick their own losers.

            rubberbandman's avatar - Spawn Classic.jpg
            mn
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            Posted: April 3, 2008, 1:30 pm - IP Logged

            On one of the lotterey doucmentaries a jackpot winner was asked about giving money to other people and he said he had given several people a million dollars each - and bar none, every single one of them came back asking for more.

            That's why you shouldn't give away money in the first place, and if you do you should give in small quantities.

            Givin away money, you got to be kidding me, that's the most ridiculous concept that I have ever heard of.

            "Gee Brain, what do you want to do tonight?"
            "The same thing we do every night, Pinky- try to take over the world."

              ThatScaryChick's avatar - x1MqPuM
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              Posted: April 3, 2008, 1:59 pm - IP Logged

              Today was my day off i was watching the news cast fox 2 channel and i got the chance to see the newest megamillion winner name David. He is a 60yr old man from Livonia who purchased his ticket in Redford township. According to him, he has four friends that he made promised that if he wins the megamillion, each will recieve 1million. David Congratulation to you i think you have a good heart . What do you think ?   

              I think it's his money and if he doesn't mind paying the taxes that goes along with giving that much money away, then good for him.

              "No one remembers the person who almost climbed the mountain, only the person who eventually gets to the top."

                hearsetrax's avatar - 0118

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                Posted: April 3, 2008, 2:11 pm - IP Logged

                That's why you shouldn't give away money in the first place, and if you do you should give in small quantities.

                Givin away money, you got to be kidding me, that's the most ridiculous concept that I have ever heard of.

                 I Agree!  giving away free money is a very ridiculous concept

                 

                how many of us have made the few silly promises ??

                  justxploring's avatar - villiarna
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                  Posted: April 3, 2008, 2:11 pm - IP Logged

                  Gift taxes are an interesting subject matter; why don't people just give $9,999 multiple times and just avoid the tax, 

                   What?

                   

                  Where did you get that number?  First of all, the annual exemption is $12,000 per recipient.  Second, you can give much more than that but then skip years as long as the total doesn't exceed $1 million while you are living.  You can also give additional exempt gifts such as college education, medical bills & pay for health insurance insurance premiums.  If someone is married then both he & his wife can give each person $12,000 a year.  So Joe & Suzy Johnson can write annual checks to Bill & Mary Smith for $48,000, or more if they have children.   

                  He also won't have $135 million.  That was the jackpot advertised, but what was the cash value?  Assuming it was about $68 to $70 million, less federal and state tax, he will end up with between $40-$45 million at the most.  Of course that's nothing to sneeze at, but you can't just begin giving millions away to all your buddies without some kind of sensible, long-term financial planning.

                  I do, however, agree with Scary.  People should be able to do whatever they want with their own money. 

                    rubberbandman's avatar - Spawn Classic.jpg
                    mn
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                    Posted: April 3, 2008, 2:40 pm - IP Logged

                    Gift taxes are an interesting subject matter; why don't people just give $9,999 multiple times and just avoid the tax, 

                     What?

                     

                    Where did you get that number?  First of all, the annual exemption is $12,000 per recipient.  Second, you can give much more than that but then skip years as long as the total doesn't exceed $1 million while you are living.  You can also give additional exempt gifts such as college education, medical bills & pay for health insurance insurance premiums.  If someone is married then both he & his wife can give each person $12,000 a year.  So Joe & Suzy Johnson can write annual checks to Bill & Mary Smith for $48,000, or more if they have children.   

                    He also won't have $135 million.  That was the jackpot advertised, but what was the cash value?  Assuming it was about $68 to $70 million, less federal and state tax, he will end up with between $40-$45 million at the most.  Of course that's nothing to sneeze at, but you can't just begin giving millions away to all your buddies without some kind of sensible, long-term financial planning.

                    I do, however, agree with Scary.  People should be able to do whatever they want with their own money. 

                      Gift tax exemptions

                    There are two levels of exemption from the gift tax. First, transfers of up to (as of 2006) $12,000 per person per year are not subject to the tax. An individual can make gifts up to this amount to as many people as they wish each year. A married couple can pool their individual gift exemptions to make gifts worth up to $24,000 per recipient per year without incurring any gift tax. Second, there is a credit that essentially negates the tax on gifts until a total of $1,000,000 has been given by one person to another.

                    If an individual or couple makes gifts of more than the limit, gift tax is incurred. The individual or couple has the option of paying the gift taxes that year, or to use some of the "unified credit" that would otherwise reduce the estate tax. In some situations it may be advisable to pay the tax in advance to reduce the size of the estate.

                    In many instances, however, an estate planning strategy is to give the maximum amount possible to as many people as possible to reduce the size of the estate.

                    Furthermore, transfers (whether by bequest, gift, or inheritance) in excess of $1 million may be subject to a generation-skipping transfer tax if certain other criteria are met.

                     

                    You are correct, and that is why I said 9999, because it is LESS than the limit and you will not get taxed, if you want to give someone 12 g's then be my guest, and the exemptions you are talking about only relates to familial and personal problems, not giving money to your best friends.

                    45 mill is still enough to pay a tax as you said, so if we agree on the subject, why the differences? 

                    "Gee Brain, what do you want to do tonight?"
                    "The same thing we do every night, Pinky- try to take over the world."

                      JackpotWanna's avatar - squiz

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                      Posted: April 3, 2008, 4:01 pm - IP Logged

                      Who are we to judge? Sounds like the winner has a good heart. He is 135 million richer than a week ago.  If I was him I would ask them to sign a contract with a lawyer present for no additional request.  Also I would not give the $1 million all at once.  Most likely would spend it in blink of eye.  Maybe $50,000 a year in contract is good. They may hate him for this but long-term it is good for all parties.

                        Uff Da!'s avatar - InCelebration 001.jpg
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                        Posted: April 3, 2008, 4:23 pm - IP Logged

                        Who are we to judge? Sounds like the winner has a good heart. He is 135 million richer than a week ago.  If I was him I would ask them to sign a contract with a lawyer present for no additional request.  Also I would not give the $1 million all at once.  Most likely would spend it in blink of eye.  Maybe $50,000 a year in contract is good. They may hate him for this but long-term it is good for all parties.

                        No, he is not 135 million richer than a week ago.  The 135 million was the advertised jackpot, spread over 26 years.  According to one news article, if he chooses the cash option, which most people do, that will be "$84.1 million, or $62.7 million after taxes."  But even that is inaccurate.  The $62.7 million is after withholding, not after his actual taxes.  His actual amount after federal taxes will likely be less than $55 million.  I don't know what his state taxes would be, but no doubt the state would want another fat chunk.

                          JackpotWanna's avatar - squiz

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                          Posted: April 3, 2008, 5:23 pm - IP Logged

                          No, he is not 135 million richer than a week ago.  The 135 million was the advertised jackpot, spread over 26 years.  According to one news article, if he chooses the cash option, which most people do, that will be "$84.1 million, or $62.7 million after taxes."  But even that is inaccurate.  The $62.7 million is after withholding, not after his actual taxes.  His actual amount after federal taxes will likely be less than $55 million.  I don't know what his state taxes would be, but no doubt the state would want another fat chunk.

                          My point is that he is much richer than last week.  He agreed to keep his promise to his buddies.  With the interest he earns from the bank(low risk investmests) could pay his buddies $50,000 a year without a problem.

                            DC81's avatar - batman39
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                            Posted: April 3, 2008, 5:25 pm - IP Logged

                            He's publicly come forward without taking the "proper steps", so I expect to see a "lottery ruined my life" story within a few years. Good heart or not, he made a foolish decision and I won't feel sorry for him if things go bad. Not to mention the effects it might have on those friends and friendships.

                            You can't predict random.

                              psykomo's avatar - animal shark.jpg

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                              Posted: April 3, 2008, 6:21 pm - IP Logged

                              Today was my day off i was watching the news cast fox 2 channel and i got the chance to see the newest megamillion winner name David. He is a 60yr old man from Livonia who purchased his ticket in Redford township. According to him, he has four friends that he made promised that if he wins the megamillion, each will recieve 1million. David Congratulation to you i think you have a good heart . What do you think ?   

                              Jack-in-the-Box>>ONLY in "AMERICA">>

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                              IF you have any problem's managing D money.....>>>>>>>>>>>>>

                              Just CONTACT .........a member of the Lottery Post or Todd...as  HE is

                              $MART with MONEY & what to DO with it and their my be a very new

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                              LOL

                              PSYKOMO