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Sharing

Topic closed. 25 replies. Last post 7 years ago by KY Floyd.

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Do you intend to share any large lottery winnings (millions) with immediate family members?

Yes, all of them [ 25 ]  [35.71%]
No, none of them [ 3 ]  [4.29%]
Just certain ones [ 35 ]  [50.00%]
I won't tell anybody I won [ 7 ]  [10.00%]
Total Valid Votes [ 70 ]  
Discarded Votes [ 3 ]  
GamerMom's avatar - tails

United States
Member #60535
April 21, 2008
460 Posts
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Posted: October 6, 2009, 7:52 pm - IP Logged

GamerMom, just in case there's a misunstanding, the $13,000 is an exemption, not the amount you can give.  In other words, if you give 5 people $100,000 each, for example, you still won't have to pay a gift tax.  You just don't need to report the first $13,000 because it's exempt.   You can write a lot of $13,000 checks to everyone you know, but the reason there is that law is to monitor wealth transfer. 

However, you can give up to $1 million in your lifetime without paying gift tax.   You have to report the amount that exceeds $13,000 and then the total is deducted from the estate tax exemption after you die.  So if you report giving away a million bucks and the Estate Tax exemption is $3.5 million, the $1 million you gave away while you were alive will reduce it to $2.5 million.

Regarding a Trust - many people have claimed their prizes in FL using a Trust.  I've read many press releases where it says "The GamerMom Family Trust claimed the $20 million Lotto..."  I think you're confusing this with remaining anonymous.  The names of the people who are named in the Trust are still listed.   Still, that won't save you income tax.  The Trust is paid & 25% is deducted as required by law.  The executor of the trust (which could be you) or its attorney will then distribute the money.  Most of the time a Trust only helps save money when you die, but if I ever win several million, I'll hire a good attorney.  If it's "only" a couple million, I think I can handle that amount myself.

Exactly why I posted the link, i wanted it to be clear.  I'm still not taking any chances w/ something like 45%..plus it give me an excuse NOT to give more than 13k, catch my drift?  The kind of people who come to you for $$ aren't going to be up on that sort of thing.

 

I could have sworn i read on here somewhere you could not sign a ticket in florida with another person.  Thanks for clearing that up for me  :)

    ThatScaryChick's avatar - x1MqPuM
    Idaho
    United States
    Member #56506
    November 21, 2007
    6537 Posts
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    Posted: October 7, 2009, 12:18 am - IP Logged

    I have always intended if I won really big to share my millions with my immediate family - parents, brothers, sisters, kids.

    I'd like to know what others plan to do.

    I plan on giving a little bit of my winnings to certain family members.

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

      Avatar
      NY
      United States
      Member #23835
      October 16, 2005
      3474 Posts
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      Posted: October 8, 2009, 1:48 am - IP Logged

      I'm referring to claiming a ticket with another person, which is what i'm assuming rdgrnr was talking about.  I know they do not allow trusts to claim...

      It has nothing to do with whether or not they'll allow a trust to claim a prize, but since a trust is legal entity entitled to own property I don't see how they can prevent a trust from claiming a prize. What the lottery can do is make rules on anonymity and publicity. Just because the ticket is owned by a trust doesn't mean the lottery can't require that an individual with a legal interest attends a press conference and has their name released to the public. Of course most trusts that claim a lottery prize were formed after the ticket became a winning ticket. A rigid interpretation of the law would mean that a trust presenting the ticket therefore took ownership of a ticket worth far more than $1, which could potentially have serious tax consequences, but so far the IRS doesn't seem to have taken an interest in pursuing that idea. The other thing the lottery can do is refuse to write multiple checks to multiple owners, but that has nothing to do with how many owners share an interest in the ticket.

      "I could have sworn i read on here somewhere you could not sign a ticket in florida with another person."

      I don't know what it says on tickets in Florida, but on NY tickets (under the line for signing) it says "Under penalty of perjury, I declare that I am the owner of this ticket...". If there are multiple owners and only one owner signs it with their own name, then they're committing perjury.

        diamondpalace's avatar - Untitled 2.jpg
        Dallas, TX
        United States
        Member #60284
        April 12, 2008
        3856 Posts
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        Posted: October 8, 2009, 3:28 am - IP Logged

        I'll share it with the world.

          Avatar
          Georgia
          United States
          Member #79361
          August 30, 2009
          93 Posts
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          Posted: October 8, 2009, 7:47 am - IP Logged

          How would the government know if you bought a car for someone or gave money to someone?

            GamerMom's avatar - tails

            United States
            Member #60535
            April 21, 2008
            460 Posts
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            Posted: October 8, 2009, 7:54 am - IP Logged

            How would the government know if you bought a car for someone or gave money to someone?

            well there are taxes to be paid on the car every year...

              BaristaExpress's avatar - BaristaExpressMX zpsfb0d8b5d.png
              Magnolia, Delaware
              United States
              Member #18795
              July 20, 2005
              789 Posts
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              Posted: October 9, 2009, 7:38 pm - IP Logged

              I'll set-up a trust for each person I give money too! This way I can state how much will be given to them from the trust and in what intervals, (once a year or every six months) and of course I'll have the trust subtract the correct amount of Federal & State tax withheld from the disbursement of said funds to them for that tax year!

              Keep dreaming the impossible dream, it just may come true! Thumbs Up

                Uff Da!'s avatar - InCelebration 001.jpg
                Washington State
                United States
                Member #33973
                February 26, 2006
                347 Posts
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                Posted: October 10, 2009, 11:42 am - IP Logged

                Not only do I plan to share with immediate family members, but also with neice, nephews, adult stepchildren, adult stepgrandchildren, etc.   About twenty of them.  At my age, I'd be a fool not to.  There is no way I would spend that amount of money in my lifetime even if I lived to 100.  I just have no desire to live lavishly.  Nicely, yes, but not lavishly.  So it would be either leaving it to family or to charity.  By arranging things in such a way as to avoid paying excess amounts in gift and estate taxes, the whole relationship could have a major uptick in living standard and there would still be millions for my favorite charities should I be fortunate enough to win something as big as a MM over $50 million.

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                  Monkey Butt, USA
                  United States
                  Member #54569
                  August 23, 2007
                  1124 Posts
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                  Posted: October 18, 2009, 3:25 pm - IP Logged

                  Taking care of my kids is first priority. Sharing with the other 50% of the kids dna is a given. The rest of the buzzards I call relatives probably not. If they were to find out I won a major jackpot and called with a sob story, I would tell them to sell everything they own and use the money on what they expect me to pay for. Since I know they would balk at the idea of liquidating everything they own, I would kindly point out to them that if they are not willing to risk everything they have worked for on themselves, then why should I risk what I have worked and paid for on them. If they don't think they are worth it then they aren't.

                    BuyLow's avatar - palm tree.jpg
                    Florida
                    United States
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                    May 22, 2008
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                    Posted: October 21, 2009, 12:31 pm - IP Logged

                    My general feeling is that I would assign my only brother a 10% stake in the winning ticket as I believe this would alieviate the "gift tax" issue and he could then just pay his own taxes.  Kind of like Lottery pools each get a percentage of the winning pot.  For others I wanted to help I would give them the maximum amount allowed per year to avoid the gift taxes.

                     

                    Come on BIG Winner!!  Daddy wants to help some people!!! Big Smile

                      Avatar
                      NY
                      United States
                      Member #23835
                      October 16, 2005
                      3474 Posts
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                      Posted: October 22, 2009, 2:28 am - IP Logged

                      "I would assign my only brother a 10% stake in the winning ticket"

                      Assigning somebody a 10% stake in the winning ticket is exactly the same as giving them 10% of the prize that was won with the ticket. If you want to avoid gift tax implications you have to give them a share of the ticket before it becomes a winning ticket. If the person you give the share to is a relative or friend, you should be prepared to prove that the gift was made before the drawing.