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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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CDanaT's avatar - tiger avatar_04_hd_pictures_169016.jpg
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January 4, 2012
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Posted: October 14, 2014, 6:16 am - IP Logged

I understand your sentiment and it's a noble one, but as I mentioned and linked to above, there's a limit.  You really should be able to give your money away to whomever you like, but that's not the case.    Personally, if I win a huge sum, I'm starting a foundation in my grandmother's name;  she asked me to do it while she was on her deathbed and it's one of the main reasons I play the lottery.   It will be a little involved to set up and I'll have to get others to serve on the foundation's board, find a good lawyer that won't charge too much to administer it and make arrangements about how to replace the lawyer/board members when they no longer are able or want to be involved.  A LOT of charities are funded by foundations that were started by business tycoons, etc.   Even at a fairly low rate of interest, a million bucks could provide $10k+ annually to good causes.   My grandmother would have wanted donations to her small church, Boy's Ranch and the local Good Samaritan's, which helps people w/ utility bills and donated food and clothing.

If I ever win a substantial sum, enough to move, I'm donating my house to the local battered women's org.  There are several "safe houses" here in town where a woman and kids (if any) can have a temporary safe haven if needed.

I had never thought of the safehouse for battered spouses...great idea... should the large prize(depending on the take home amount of course)  come my way soon, I would like to take at least 20 million and set up a non profit. I am not sure if this is allowed or not but if I could invest the $20 Mil and use the interest income from it. Perhaps it could generate 4-5% interest or more profit annually to run the business and be given to specific people who truly need the help, like the battered spouses/abused children, burn victims, injured police officers/firefighters or wounded warriors. Hiring a few(2) personally known folks to run the organization...just a few thoughts on the obligated to share topic.

Stay Positive, Believe and good things will come your way

    RedStang's avatar - tallman zps6gf4inoc.jpg
    NY
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    Posted: October 14, 2014, 10:06 am - IP Logged

    OneAboveAll:

    Psyko agree with UR post win plans 4D management of UR JACKPOT win'$$$$$!!!!

                                               Hurray!Hurray!   BUT  Hurray!Hurray!

    after.......giving 2UR first preference would U consider helping the African people

    who R dying HORRIBLE death of the EBOLA Bat virus disease 24/7 each day!!!

    Make sure UR money goes 2D African people "directly", because U may B the WON

    who STOP'$$$$$$$ this THING over their NOW!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

    Over here, it cost 2 much in our health care system 2 fight D THING>>>>>like it

    cost $20,000 dollars per patient each day 2 care 4 each person ND hospital room.

    It cost $150,000 2 send a clean-up crew 2 where they once lived and clean good!

    This cost is only the beginning of the cost spending over here cause they got 2

    start screening all people who was in contact of the sick person plus their family.

    REMEMBER the people N Africa R now DYING Bat FASTER than they bury them.

    UR gift ($$$) will reach & cure many, many, many more

    people N Africa & will cost much less ($$$) per person!!!

                                 US Flag White Bounce US Flag

    It cost $150,000 2 send a clean-up crew 2 where they once lived and clean good

    Merry Maids would of done it for $200.

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      NY
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      Posted: October 14, 2014, 1:10 pm - IP Logged

      " I remember that waitress"

      I just read the court decision in the case, and it's a text book on how not to share. They had nothing even resembling a coherent agreement, and their testimony seems to have been completely honest about that. It really didn't amount to much more than lots of people do when they decide to buy some tickets at the same time as friends or family - "if we win let's share". Nothing about any kind of agreement to actually buy tickets or any details on how much would be shared.

      The decision doesn't dwell on it, but it also seems to have been an agreement about sharing if somebody won "a substantial amount of money". It seems to me that would be fatal on its own, because it implicitly means that you're only sharing the taxable value of a prize after winning rather than sharing ownership of the ticket. If you're actually sharing (or gifting shares of) a lottery ticket, then you're sharing the prize whether it's $10 or $10 million.

      You can find the court decision here .

        psykomo's avatar - animal shark.jpg

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        Posted: October 14, 2014, 2:32 pm - IP Logged

                               Would you feel obligated to share it?

           Zuckerberg gifts $25 million to CDC to FIGHT the EBOLA scourge!

         

         

        "We need to get Ebola under control in the near term so that it

        doesn't spread futher and become long-term global health crisis

        that we end up fighting for decades at large scale, like HIV or

        polio",.......Zuckerberg said in a Facebook post today 10/14/14

                     

                                          Scared  just say no 2 EBOLA Scared

          Skibunnylk's avatar - Lottery-059.jpg

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          Posted: October 14, 2014, 2:56 pm - IP Logged

                                 Would you feel obligated to share it?

             Zuckerberg gifts $25 million to CDC to FIGHT the EBOLA scourge!

           

           

          "We need to get Ebola under control in the near term so that it

          doesn't spread futher and become long-term global health crisis

          that we end up fighting for decades at large scale, like HIV or

          polio",.......Zuckerberg said in a Facebook post today 10/14/14

                       

                                            Scared  just say no 2 EBOLA Scared

          Bill Gates has a net worth of roughly $80 billion so a $25 million gift is equivalent  to someone who has a net worth of $1 million donating $300 of his or her money.

          Just wanted to put things in perspective.

            JackpotWanna's avatar - squiz

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            Posted: October 14, 2014, 3:39 pm - IP Logged

            Mainly my parents.

             

            Party

              mikeintexas's avatar - tx avatar-1.gif
              Texas Panhandle
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              Posted: October 14, 2014, 5:19 pm - IP Logged

              " I remember that waitress"

              I just read the court decision in the case, and it's a text book on how not to share. They had nothing even resembling a coherent agreement, and their testimony seems to have been completely honest about that. It really didn't amount to much more than lots of people do when they decide to buy some tickets at the same time as friends or family - "if we win let's share". Nothing about any kind of agreement to actually buy tickets or any details on how much would be shared.

              The decision doesn't dwell on it, but it also seems to have been an agreement about sharing if somebody won "a substantial amount of money". It seems to me that would be fatal on its own, because it implicitly means that you're only sharing the taxable value of a prize after winning rather than sharing ownership of the ticket. If you're actually sharing (or gifting shares of) a lottery ticket, then you're sharing the prize whether it's $10 or $10 million.

              You can find the court decision here .

              Appreciate the research.  My main intent was to caution people who were saying they'd give away a large chunk of their winnings - I wanted to warn them that it isn't as simple as writing a check.  If someone won tonight's MM cash option, they'd net right around 60 million after taxes. (my figures will be rounded up or down for simplicity)  Sure, it'd be nice to give half of that to friends and family, but that would require another 12 million in tax, so that's 52 million paid out of the original 100 million.  Paying 40% on the jackpot is way more than enough, IMHO, and paying 52% is...well, the profanity filters would "bleep out" what I want to say, so just use your imagination.   I guess what really chaps my rosy red rear is that huge sum could do some genuine good in the world, but instead would be used to fund the fed. govt. for just a few minutes and most of that would be for interest on debt.

                mikeintexas's avatar - tx avatar-1.gif
                Texas Panhandle
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                Posted: October 14, 2014, 5:30 pm - IP Logged

                I had never thought of the safehouse for battered spouses...great idea... should the large prize(depending on the take home amount of course)  come my way soon, I would like to take at least 20 million and set up a non profit. I am not sure if this is allowed or not but if I could invest the $20 Mil and use the interest income from it. Perhaps it could generate 4-5% interest or more profit annually to run the business and be given to specific people who truly need the help, like the battered spouses/abused children, burn victims, injured police officers/firefighters or wounded warriors. Hiring a few(2) personally known folks to run the organization...just a few thoughts on the obligated to share topic.

                Yeah, I was ultra-conservative on the yearly interest.    I don't know how much I'd use to start my foundation, but I'd also leave a big chunk to it in my will.  Your plans sound good to me.

                I'm with the others who don't think much of national charities.  I know of a few families within just a couple of blocks that could use help and handing them a $14,000 check (or more individually) could do more good than any charity could or would do f/ them - no administration fees, nothing spent for fund-raising, etc., too.

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                  Salisbury, NC
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                  Posted: October 14, 2014, 5:42 pm - IP Logged

                  I am glad someone is speaking about giving if they win a large j/p.

                  Personally I can't see myself SPLITTING  anything with anyone. 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.

                  This is what I feel is the best way to give them a large portion of your jackpot. As the ticket holder you have the option to do what you want to. Why give your family a small percentage of the winnings. Like $50,000 or $100,000 to pay off some bills and help their family. As soon as they pay off their bills they will be back asking for more.

                  1. You have the 0ption to take the cash or annuity.
                  2. If you sign the ticket that makes you the owner of the ticket and you cannot add others as winners
                  3. Treat your family as if you were in the office pool. Than call the lottery office and let them know that the ticket is held by multiple people. They will give you a number to put on the ticket signature line and send you some forms to fill out for ID and SS numbers.
                  4. Let say you won $250 million. This is what I would do.
                  5. I have two children and five siblings. Each will have the same option on what I designate to give them.
                  6. I would designate $50 million to each of my children to invest and they would pay their own taxes (cash or annuity).
                  7. To each of my siblings I would designate $10 million and they would pay their own taxes (cash or annuity).
                  8. And at my age I would take my $100 million cash option. Out of my money I would give to my Church and my children and wife can live off my money and travel.
                    Artist77's avatar - batman14

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                    Posted: October 14, 2014, 6:22 pm - IP Logged

                    " I remember that waitress"

                    I just read the court decision in the case, and it's a text book on how not to share. They had nothing even resembling a coherent agreement, and their testimony seems to have been completely honest about that. It really didn't amount to much more than lots of people do when they decide to buy some tickets at the same time as friends or family - "if we win let's share". Nothing about any kind of agreement to actually buy tickets or any details on how much would be shared.

                    The decision doesn't dwell on it, but it also seems to have been an agreement about sharing if somebody won "a substantial amount of money". It seems to me that would be fatal on its own, because it implicitly means that you're only sharing the taxable value of a prize after winning rather than sharing ownership of the ticket. If you're actually sharing (or gifting shares of) a lottery ticket, then you're sharing the prize whether it's $10 or $10 million.

                    You can find the court decision here .

                    There is also another interesting point where the father is told by the GC of the lottery, NOT to sign the ticket.

                    J'aime La France.

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                      Salisbury, NC
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                      Posted: October 14, 2014, 10:54 pm - IP Logged

                      This would not be a gift, in a lottery pool only ticket win the j/p. An everyone get a equal share and no one sign the ticket. It maybe five or more people in the pool and each can received cash value or annuity. So with a lawyer you should be able to let your family be a shared winner of that ticket.

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                        Posted: October 15, 2014, 1:39 am - IP Logged

                        "My main intent was to caution people who were saying they'd give away a large chunk of their winnings "

                        One of the problems with planning to share is that there aren't a lot of court opinions to offer guidance. I've thought for quite some time that a lot of winners were begging for the chance to be hit with gift taxes, but based on the number of winners who talk about sharing with family and the very few stories like the tale of the waitress I get the impression that the IRS isn't overly aggressive about pursuing people over it.

                        I don't have a major quarrel with the basics of estate taxes and gift taxes, but I definitely think it should be easier to share an unexpected windfall. There's a significant difference between having a bunch of money and making a gift to somebody and making a gift so that the money never even lands in your bank account (or only sits for a few days until being disbursed). If concerns about gift tax keeps people from sharing (or makes them share discreetly) then the IRS won't be collecting any gift taxes, anyway. Much like the cliché about the lottery being a tax on stupid people, gift taxes for lottery winners who share are something of a stupid tax. If you don't do at least some basic planning it's a stupid decision that could cost you if you get lucky enough to win.

                        "There is also another interesting point where the father is told by the GC of the lottery, NOT to sign the ticket."

                        I'm assuming that was based on the idea that the prize was going to be claimed by the corporation instead of an individual. I don't know how other courts would view the FL lottery position on ownership, but it suggests that simply having multiple people sign the ticket before the drawing should at least satisfy the FL lottery that those people were all owners before the ticket value became significant enough to make gift taxes matter. Perhaps that would  have some weight for any ticket that has a notice saying that it's a bearer instrument.

                        Signing names on the ticket at any point before  cashing it in certainly makes it impossible to revoke any  significant sharing. You could probably still cash a ticket worth less than $600 at plenty of retailers, but if you've got to go to the lottery themselves they're going to make sure the money is paid to everyone. I expect that part of the IRS's thinking about the validity of many supposed sharing agreements is that few people who are willing to share 1/4 to 3/4 of a multi-million dollar prize would share the same portion of a $10,000 prize. The downside of that is that it may make it impossible to have the lottery pay the prize to a trust, LLC, or any entity other than the people whose names are on the ticket.

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                          Posted: October 15, 2014, 2:58 am - IP Logged

                          I would help those that have helped me in the past the maximum gift amount of $14k annually and if anyone had any education or medical expenses that are exempt from gift taxes, then I would help them out with that. But #1 most important priority is anonymity and making sure people do not know that I won the lottery, so I would make up a story that I got good at poker and won an excessive amount.