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If you won a huge jackpot would you feel obligated to share it?

Topic closed. 57 replies. Last post 2 years ago by Toronto.

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Kordman916's avatar - 4eyes
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Posted: October 11, 2014, 2:06 pm - IP Logged

I've seen many a post around these boards about how if a person won a huge jackpot they would split it between their siblings and parents...

Personally I can't see myself SPLITTING  anything (I'm talking like a 25/25/25/25 split). I could see myself giving my intermediate family a few million, but not a large percentage and definitely not because I feel obligated to give them a part of the money, but because I'd want to.

I definitely am not a charity person (OH NO!!!) so until I find one that touches on something that I care about I'm not giving a cent to any charities.

Then again I'm a pretty self-centered person.

What is your take?

If I win... I'm gonna go bananas Banana... Then I'm going to Disney World 

    LottoMetro's avatar - Lottery-024.jpg
    Happyland
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    Posted: October 11, 2014, 2:46 pm - IP Logged

    I wouldn't "share" it in the fashion of charitable giving to anyone. Instead, I would use it to start a business or something and share it through that (creating jobs with good benefits, produce products to help the world, etc). If my family wants some of it then they can mow my lawn, be my travel agent, etc.  Wink

    If the chances of winning the jackpot are so slim, why play when the jackpot is so small? Your chances never change, but the potential payoff does.
    If a crystal ball showed you the future of the rest of your life, and in that future you will never win a jackpot, would you still play?

    2017: 0% (0 tickets)
    P&L % = Total Win($)/Total Wager($) - 1

      music*'s avatar - nw bookeep.jpg
      Happy California
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      Posted: October 11, 2014, 3:11 pm - IP Logged

      Disapprove Please consult with the IRS before gifting.  I think that each person is allowed by the IRS to give another person a total of $14,000.00 per calendar year . Double that amount to $28,000.00 if you the gift giver are married.  There is a gift tax of about 55% for amounts greater than those.

        I have been told that ignorance of the law is no excuse to not abide by it.  I have my personal opinions of taxes in general.

      Argue  Please correct me if I am wrong. Thank You !

        mikeintexas's avatar - tx avatar-1.gif
        Texas Panhandle
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        Posted: October 11, 2014, 3:20 pm - IP Logged

        I wouldn't mind sharing with some of my family, but consider this:  let's say you won a JP w/ a cash option of a hundred million.  Depending upon where you live, you're paying approx. 40 million in taxes.   If you want to give a million bucks to someone, you have to pay 40% gift tax, so your largesse will cost you 1.4 million.  I don't know about you, but I've already paid MORE THAN ENOUGH in taxes on that money. 

        The IRS might have changed the numbers, but the last I read about it was that you can give up to $14,000 per person per year without being taxed, up to a total of $5.34 million in your lifetime.  Maybe some family members might not like being doled out money in such "small" amounts, but that's the only way to do it legally.  (I'm sure there are trusts and such you can use, but as far as I know, that's the simplest way to do a tax free cash transfer)

        Maybe you want to break the law and NOT report money given as cash.  Well, banks have to report any transactions $10k and up to the IRS.  So, you go back to the bank every day and draw out $9.5k.  It'd take you several months to get a million bucks out - not practical, plus even if you gave that duffel bag full of hundred dollar bills to your sister, she's going to want to keep it safe and put it in the bank....where her transaction gets reported to the IRS and they want to know where she came up with all that cash.  I don't know what the penalties are for something like that, but it's not worth spending time in jail or spending a lot of money defending yourself in court and eventual fines.

        You COULD start up some business and hire family members - that might not work for many people, though and you'll bring down the wrath of the IRS if you pay your sister a million bucks/year to be the office mgr.   Other than doling it out at $14k/yr., the only other way I know to do it is to have each family member/person sign the winning ticket before claiming...but then you're splitting it equally.  (I'm pretty sure an agreement made AFTER the drawing stating "10% to Tom, the same to Dick and Harry" isn't going to pass muster w/ the govt.)

        No, I plan on doing it legally and above-board.  I have a nephew w/ a wife and four children - I'll give the family $84,000/yr.  $28k to the adults will be nice for them - that works out to a pay raise of $6.73/hr. for each of them. (40 hr work week)  It could make most or all of a mortgage payment, help them pay off debt, buy a car, any number of things.  $14k to each kid will buy a car/ be a good start on college education*/help with getting established when they move out.

        *You can pay for their tuition tax free, along with medical expenses not just for your family, but for anyone you like.  The only kicker is that the payment has to be made directly to the school or doctor/hospital. 

        If someone whines about me being stingy, I'll tell them I didn't have to give them anything at all, THAT'S stingy.
        ---
        EDIT: the other two posts were made while I was composing my massive missive.

          emilyg's avatar - cat anm.gif

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          Posted: October 11, 2014, 3:21 pm - IP Logged

          I would not feel obligated - I would WANT to share with daughter, grandsons and one very good friend.

          love to nibble those micey feet.

           

                                       

            TinkerMazell's avatar - Lottery-035.jpg
            Augusta, Georgia
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            Posted: October 11, 2014, 3:34 pm - IP Logged

            I wouldn't feel obligated.  It's MY money.  I won it. I don't mind sharing, though. But not out of obligation, just the kindness of my heart.

            I am a $20,000 winner from a Georgia Lottery scratch off game called "$3,000,000 Taxes Paid"!

              music*'s avatar - nw bookeep.jpg
              Happy California
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              Posted: October 11, 2014, 3:59 pm - IP Logged

              Thank You mikeintexas for your massive missive. I have written down your corrections of my work on my sheet of must do's when I win. Let's just hope and pray that we have these head aches and problems in our lives after we win.  Jester Laugh

                sully16's avatar - sharan
                Ringleader
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                Posted: October 11, 2014, 4:24 pm - IP Logged

                No, but I would quietly help family and friends.

                 HyperBe Happy.

                  MillionsWanted's avatar - 24Qa6LT

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                  Posted: October 11, 2014, 4:52 pm - IP Logged

                  I would give a few percentages to my nearest family and a few percentages to good causes. That would be 10-15% total I think.

                    CDanaT's avatar - tiger avatar_04_hd_pictures_169016.jpg
                    TX
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                    Posted: October 11, 2014, 4:58 pm - IP Logged

                    feel obligated to share ??  I think it is already been decided for you....you know, through the new "wealth redistribution" program recently initiated..Bang Head

                      mikeintexas's avatar - tx avatar-1.gif
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                      Posted: October 11, 2014, 5:08 pm - IP Logged

                      feel obligated to share ??  I think it is already been decided for you....you know, through the new "wealth redistribution" program recently initiated..Bang Head

                      I Agree!  I know I've been wasting too much time on Facebook when I see something like this and want to hit the "Like" button, then I remember the emoticons.


                      A people that elect corrupt politicians, impostors, thieves and traitors are not victims...but accomplices.
                       - George Orwell

                        mikeintexas's avatar - tx avatar-1.gif
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                        Posted: October 11, 2014, 5:22 pm - IP Logged

                        Thank You mikeintexas for your massive missive. I have written down your corrections of my work on my sheet of must do's when I win. Let's just hope and pray that we have these head aches and problems in our lives after we win.  Jester Laugh

                        Y/W. It wasn't a "correction" - as I said, your post had been posted while I was composing my own.  Those numbers change all the time;  for example, the total lifetime exemption was 5.25 million and from what I've read, was adjusted upward to account for inflation.  I've also read that $14k per yr. amt.  might be upped as well.   Did you know the IRS has a cap on charitable donations?

                        I try to consider all avenues but sometimes it leads me to think of the worst possibilities.  I love my family (well, most of 'em) and I think those I love also love me, but you never know what can happen when large amts. of money are involved.  People have been murdered for much less than $14k and I don't think I'd let anyone know how much and to whom I'm leaving in my will. I might very well tell my family that I'll keep giving them money as long as I'm alive, but the bulk of my estate will go to charity or into my foundation when I die...even if it won't.   Someone might be a little too quick to pull the plug if they thought they were going to get rich when I kick the bucket.

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                          Posted: October 11, 2014, 6:23 pm - IP Logged

                          For me, I would ask how much do I need to buy a nice home in a gated community, money put aside for property taxes and gated community fees for 41 years.  Than I would set-up a 41 year life style budget.  Depending on the size of the jackpot,  I would say 15 to 20 million dollars for me and about 5 to 8 million for my brother, two sisters, my son and mom and dad.  For a charity, at the moment no money because I do not trust charities, like the charity in New York for the Veterans that keeps most of the money.  You do not have to split your jackpot equally.

                            mikeintexas's avatar - tx avatar-1.gif
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                            Posted: October 11, 2014, 6:40 pm - IP Logged

                            "You do not have to split your jackpot equally."

                            You can share your winnings however you like, but giving anyone else anything over $14k (per yr.) will subject the amt. over and beyond that to the gift tax.  Of course, if you have an agreement on paper (to document it), you can apportion shares however you like, but to carry full legal weight, it should be notarized and you can't do that after the drawing date or the IRS would be on you like a duck on a June bug. (with about the same results)  As I said before, you could have other people sign the ticket after you won, but I'm thinking they'd have to be equal shares. (but I don't know for sure, just seems like that would be the case)

                            Giving your kinfolk...or anyone else... 5 million bucks will cost you 7 million - that's a fact.

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                              Posted: October 11, 2014, 7:00 pm - IP Logged

                              What ever the amount is they will have to pay the taxes and still have more than what they have now.