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More big Lottery winners using trusts to stay anonymous

Topic closed. 13 replies. Last post 2 years ago by PrisonerSix.

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Bondi Junction
Australia
Member #57242
December 24, 2007
1102 Posts
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Posted: February 20, 2015, 7:36 pm - IP Logged

When the time came to claim the largest jackpot ever on a Massachusetts scratch ticket, it wasn’t the person who bought the ticket who showed up for the $15 million prize.

Instead, the two smiling men holding an oversized check and scratch ticket in the photo taken in July at Lottery headquarters in Braintree are a lawyer and an accountant. The actual winner’s name was not disclosed to the public or even to Lottery officials.

That’s because the winner, or winners, formed a legal trust to claim the prize – the largest ever in an instant win game. It’s a practice that’s been around for years but has taken off this year as a growing number of winners seek to keep their newfound wealth a secret.

We all get a lot out of lotteries!

    Bondi Junction
    Australia
    Member #57242
    December 24, 2007
    1102 Posts
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    Posted: February 20, 2015, 7:38 pm - IP Logged

    Good on 'em!

    We all get a lot out of lotteries!

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      NYC
      United States
      Member #161115
      November 17, 2014
      126 Posts
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      Posted: February 20, 2015, 8:11 pm - IP Logged

      I'm guessing the reason they are smiling is because of the nice cut from the check that they would be getting.

        SammyJoe10's avatar - disney37
        Middle of Nowhere NC
        United States
        Member #151289
        January 12, 2014
        428 Posts
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        Posted: February 20, 2015, 8:23 pm - IP Logged

        Wow! Good for them. Even at $30 bucks a ticket, it's great that they offer prizes as high as $15 million! Even the second tier prize offers 36 winners of $1 million bucks. NC doesn't offer anything comparable to that. Our $20 tickets only offer 4 winners of $4 million and 16 winners of $1 million. That's why I never buy scratch offs here.........

          Coin Toss's avatar - shape barbed.jpg
          Zeta Reticuli Star System
          United States
          Member #30470
          January 17, 2006
          10392 Posts
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          Posted: February 20, 2015, 11:13 pm - IP Logged

          myturn,

          In most if not all states in the US the information on who makes up a trust can be found with little effort.

          Those who run the lotteries love it when players look for consistency in something that's designed not to have any.

          Lep

          There is one and only one 'proven' system, and that is to book the action. No matter the game, let the players pick their own losers.

            mikeintexas's avatar - tx avatar-1.gif
            Texas Panhandle
            United States
            Member #136843
            December 20, 2012
            1409 Posts
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            Posted: February 21, 2015, 1:37 am - IP Logged

            myturn,

            In most if not all states in the US the information on who makes up a trust can be found with little effort.

            I Agree!

              Scratch$'s avatar - sm lottery.jpg

              United States
              Member #158848
              September 5, 2014
              294 Posts
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              Posted: February 21, 2015, 2:40 am - IP Logged

              myturn,

              In most if not all states in the US the information on who makes up a trust can be found with little effort.

              The entity MANAGING the trust can be found out fairly easily, but it's not nearly so easy to find out the name of the person the trust was established for. It usually takes a court order to identify them. 

              None of these anonymous lottery winners with trusts had been identified in Texas as of the date of this article:

              http://www.chron.com/news/houston-texas/article/Trust-keeps-24-million-jackpot-winner-anonymous-3848371.php

              Scratchers ~ Cash 5 ~ Powerball ~ Mega Millions


                United States
                Member #106134
                February 13, 2011
                806 Posts
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                Posted: February 21, 2015, 3:13 pm - IP Logged

                My state is awful, the publish the first, middle, and last name of winners along with street address, date of birth, and social security number.

                Great way to leave someone open to identity theft huh?

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                  Kentucky
                  United States
                  Member #32652
                  February 14, 2006
                  7344 Posts
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                  Posted: February 21, 2015, 4:01 pm - IP Logged

                  My state is awful, the publish the first, middle, and last name of winners along with street address, date of birth, and social security number.

                  Great way to leave someone open to identity theft huh?

                  Name and address, probably; age possibly, but they don't publish the SS number. Is there is reason you're giving out incorrect information about your state lottery?

                    Avatar

                    United States
                    Member #149820
                    December 9, 2013
                    644 Posts
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                    Posted: February 21, 2015, 5:13 pm - IP Logged

                    My state is awful, the publish the first, middle, and last name of winners along with street address, date of birth, and social security number.

                    Great way to leave someone open to identity theft huh?

                    didnt someone from your state win the last big jackpot?? Dont belive anybody is talking about them now or can even remember their name without looking it up. People care that real everyday people can win and we deserve to know who has one  after a couple weeks no one is even thinking about them. People who come into that kind of money are more at risk from their own friends and family member than the general population anyways

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                      CALI
                      Afghanistan
                      Member #118735
                      November 6, 2011
                      134 Posts
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                      Posted: February 23, 2015, 11:11 pm - IP Logged

                      1. Form an LLC. The state Gaming Commission, which operates the New York Lottery, will only issue a maximum of 10 checks to winners. Wills needed to split the prize into 22 pieces. So he and the group hired an attorney to create a limited liability company to accept the winnings from the lottery. The LLC, of which Wills is president, will then distribute the money to the 22 members. The company, formed Dec. 23, is called 12 Checks Short LLC.

                      2. Set up a bank account. Wills established a bank account for the LLC at the Syracuse Fire Department Federal Credit Union, to which the lottery will wire the $661,800 in net winnings a few days from now. The lottery withholds estimated state and federal income taxes from the $1 million prize.

                      3. Hire an accountant. It might seem simple to divide the winnings by 22, but distributing the money from an LLC is more complicated than that, Wills said. For one thing, the LLC must provide K-1 tax forms to each member of the company showing his or her earnings and how much was withheld for taxes. It's the equivalent of getting a W-2 from your employer.

                      4. Pay the professionals. Wills said he established an escrow account to pay the lawyer and accountant. He declined to say how much.

                      5. Disband the LLC. In about two weeks, the lawyer will formally shut down 12 Checks Short LLC, Wills said.

                        ThatScaryChick's avatar - x1MqPuM
                        Idaho
                        United States
                        Member #56506
                        November 21, 2007
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                        Posted: February 23, 2015, 11:15 pm - IP Logged

                        My state is awful, the publish the first, middle, and last name of winners along with street address, date of birth, and social security number.

                        Great way to leave someone open to identity theft huh?

                        Lotteries/newspapers do not print peoples social security numbers. If they do, please post a link to an article where they do because I would really like to see that.

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

                          noise-gate's avatar - images q=tbn:ANd9GcR91HDs4UJhjxO7cmeMQWZ5lB_FOcMLOGicau4V74R45tDgPWrr
                          Bay Area - California
                          United States
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                          December 12, 2012
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                          Posted: February 24, 2015, 12:06 am - IP Logged

                          My state is awful, the publish the first, middle, and last name of winners along with street address, date of birth, and social security number.

                          Great way to leave someone open to identity theft huh?

                          I know you messing around with this SS # nonsense- but street address? I would imagine that claiming your jackpot winnings would require that you prove that you over 18, but l seriously doubt you'd be asked to provide a birth certificate, a driver's license would suffice.They use it to card person's wanting to buy cigarettes & alcohol...same difference here.

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

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                            Baton Rouge, LA
                            United States
                            Member #4602
                            May 7, 2004
                            700 Posts
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                            Posted: February 24, 2015, 9:50 pm - IP Logged

                            1. Form an LLC. The state Gaming Commission, which operates the New York Lottery, will only issue a maximum of 10 checks to winners. Wills needed to split the prize into 22 pieces. So he and the group hired an attorney to create a limited liability company to accept the winnings from the lottery. The LLC, of which Wills is president, will then distribute the money to the 22 members. The company, formed Dec. 23, is called 12 Checks Short LLC.

                            2. Set up a bank account. Wills established a bank account for the LLC at the Syracuse Fire Department Federal Credit Union, to which the lottery will wire the $661,800 in net winnings a few days from now. The lottery withholds estimated state and federal income taxes from the $1 million prize.

                            3. Hire an accountant. It might seem simple to divide the winnings by 22, but distributing the money from an LLC is more complicated than that, Wills said. For one thing, the LLC must provide K-1 tax forms to each member of the company showing his or her earnings and how much was withheld for taxes. It's the equivalent of getting a W-2 from your employer.

                            4. Pay the professionals. Wills said he established an escrow account to pay the lawyer and accountant. He declined to say how much.

                            5. Disband the LLC. In about two weeks, the lawyer will formally shut down 12 Checks Short LLC, Wills said.

                            Something one would definitely need a CPA for. I looked at those forms and couldn't figure them out for this situation, particularly with the taxes the lottery withholds from the prize.

                            It would be easier if a form 5754 could be used in conjunction with the LLC, but don't know if that is allowed.

                            Prisoner Six

                            "I am not a number, I am a free man!"