i would not tell my family. my wife and i have discussed this already and we are both in agreement. i love my family (and my wifes family), but there are many "issues" in both families that would need to be considered before telling or helping any of them. its not that we do not want to share, i would love nothing more than to buy them all a house and a car and tell them they dont have to worry about a mortgage anymore - but it wouldnt stop there with many of them.
i would wait a few months (perhaps longer if its a very large jackpot) and do everything correctly. i do not have aninimity in my state, so i would figure out how to best go about claiming this as quietly as possible.
i would set up a business and use that as my front for the income. i dont see us going out and buying a new house and a bunch of new cars (right away :) so i think we could pull it off. its not like people know exactly how much you have - unless of course you do go out and spend 2 million on a home, and buy a mercedes and a porsche in the first 30 days.
our kids are still very young so they wouldnt know a thing - they would have trusts set up for them that they wouldnt even know about. i would have stipulations that they cannot receive said trusts until they are at least 25 years of age and have a college degree.
other than that, i am looking forward to one day being able to put this plan (dream) in place. i have charities that i want to help, charities that i want to start, and life to enjoy. work consumes so much of our time, its amazing just how little time we actually get with our families (mainly our kids) when you think about it. it would be nice to take something that consumes more than half of each waking day (work) out of the equation, and live a comfortable life while enjoying my kids while they (and myself) are still young.