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With powerball being so high, are you planning on splitting the JP?

Topic closed. 7 replies. Last post 2 years ago by Teddi.

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Posted: February 2, 2015, 10:55 pm - IP Logged

If I win the jackpot I'm splitting it 6 ways: mom/dad = 1, brother = 2, sister1 = 3, sister2 = 4, my son = 5 and myself = 6

    mikeintexas's avatar - tx avatar-1.gif
    Texas Panhandle
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    Posted: February 3, 2015, 12:48 am - IP Logged

    If I win the jackpot I'm splitting it 6 ways: mom/dad = 1, brother = 2, sister1 = 3, sister2 = 4, my son = 5 and myself = 6

    Now, I'm no expert, but it's my understand that other than the $5.43 million estate/lifetime exemption and the tax-free $14k annual gift per person (28k from a married couple) to anyone, gift taxes will be 35% on anything above that 5.43 million and annual gifts above 14k if the 5.43 has been maxed out. (that's federal;  Connecticut & Minnesota also have state gift taxes)    I think your plan is admirable, but it's definitely one of those cases where you should get some competent legal and financial advice should you win and before claiming;  you might be able to keep from paying Uncle Sam so much.   I don't know 'bout you, but he ain't my favorite uncle these days.

      noise-gate's avatar - images q=tbn:ANd9GcR91HDs4UJhjxO7cmeMQWZ5lB_FOcMLOGicau4V74R45tDgPWrr
      Bay Area - California
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      Posted: February 3, 2015, 1:15 am - IP Logged

      Absolutely! and to those in Need...

       

      James 2:15-16 (New International Version (NIV)

      15  Suppose a brother or a sister is without clothes and daily food. 16  If one of you says to them, “Go in peace; keep warm and well fed,” but does nothing about their physical needs, what good is it?

      People who say it cannot be done should not interrupt those who are doing it- George Bernard Shaw.

        mikeintexas's avatar - tx avatar-1.gif
        Texas Panhandle
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        Posted: February 3, 2015, 2:43 am - IP Logged

        I would use a big chunk of that $5.43 million exemption in gifts.  I have no children, but I have four grown nieces and nephews.  I'd give them each $1.25 million and tell them I hope they'd use that quarter million for paying off their houses or buying one, new car(s) or helping with their own kid's college expenses. (I'd pay tuition for any that want to go to school, those costs and medical are not taxable as long as they're paid directly to the school /medical facilities or doctors) I would tell them I hope they'd hang on to any left over plus safely invest the million and use that for their own futures and they could be millionaires.

        I'll donate some money to local charities, but I doubt I'd send any to national organizations - most of the major ones don't have a good record of using their monetary donations where it's needed but instead a big chunk goes to salaries and overhead and fund raising expenses. I'd start and fund a foundation in my paternal grandmother's name (as she asked me to do on her deathbed) and make sure the money goes directly to those who need it.  I might endow a scholarship fund in my mom's name. I'd also make some of those $14k non-taxable gifts every year to deserving and needy friends and I'd be a big tipper to some hard-working waitresses, esp. those single mothers.


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

          hearsetrax's avatar - 0118

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          Posted: February 3, 2015, 5:28 am - IP Logged

          I'd hardly call $317 million jackpot XXXL ......

          but it could in some respect leave the lucky soul/s well off for a good while, if they spend/invest wisely

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            Posted: February 3, 2015, 6:35 am - IP Logged

            Is that the same if everybodies name is on the ticket? Like a pool.

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              Posted: February 3, 2015, 6:58 am - IP Logged

              My plan is to set it up like a pool with 6 players.

                Teddi's avatar - Lottery-008.jpg

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                Posted: February 3, 2015, 7:40 am - IP Logged

                Is that the same if everybodies name is on the ticket? Like a pool.

                No, pooling is different. All of the recipients would need to claim the money with you then the lottery will split the money equally and each person would be responsible for their own taxes. But if you are the only one to claim it and you then try to divvy out more than the $5.x million allowed, you're going to take a HUGE financial hit in gift taxes. If you're already going to cough up ~50% in taxes just for winning, no need to pay anything more than that if you don't have to.