More lottery winners using trusts to accept prizes anonymously

Nov 29, 2015, 8:17 pm (69 comments)

Insider Buzz

BRIDGEWATER, Mass. — A $1 million scratch ticket was recently sold in Bridgewater, Massachusetts, but despite regulations requiring the Massachusetts State Lottery to disclose big winners we may never know who purchased the winning ticket.

In a picture published on the Lottery's website announcing the winning, it is not the winner accepting the prize money. Instead, it is Brady McDevitt, an attorney and the trustee of The Apple Nominee Trust of Milton.

McDevitt was able to accept the check as a trustee on the winner's behalf because the winner decided to go the increasingly popular route of forming a trust to claim their prize.

Although Lottery regulations state that a claimant's name, city or town, image, amount of prize, claim date and game are all public record, trusts have become a common tool for winners to skirt the rules and remain their anonymity when claiming a big prize.

"Trusts and other legal entities fulfill the definition of a legal person," said Christian Teja, the director of communications for the Massachusetts Lottery. "Consequently trusts are allowed to claim Lottery prizes."

The rules requiring the public disclosure of Lottery players who win big money were originally put in place to promote transparency and create confidence that the games are being run fairly and winnings aren't going to Lottery employees who are barred from playing.

"The reason they have that rule is so the public knows that there is not some fraudulent scheme going on where people in the Lottery or a certain group of people are always winning like it's a scam," McDevitt said.

McDevitt, who has accepted two $1 million prizes this month as a trustee of the behalf of clients who set up trusts to collect their winnings, said that legal entities like corporations or LLCs — limited liability companies — can also be used to collect prizes, but trusts are the most popular choice because they are the easiest to set up.

"You have a little more freedom and you don't have to file anything or have any filing fees with the state," McDevitt said, adding that a trust can be set up in matter of days.

Teja said that typically less than 10 people will use a trust to claim their prize every year, but that the number has been inching up in recent years.

So far in 2015, 12 trusts have accepted a total of $32 million on behalf of Lottery winners. There have been more than 150 $1 million Lottery winners to date this year.

Teja said that trusts can be set up by winners for a variety of reasons, including for financial planning purposes or legal protection if a person is sharing the winnings with other people. However, the most popular reason appears to be so that people can maintain their anonymity.

"The main reason my clients have done it have not been financial planning reasons. It has just been so they don't have to have their picture taken or have any publicity with it," said McDevitt

Many Lottery winners who seek anonymity after winning a big prize due so out of safety concerns.

"One of the clients I have done it for had won (the Lottery) previously, and it had gotten to the point where she had to call the police because someone was stalking her," McDevitt said.

During her campaign in 2014, Treasurer Deb Goldberg weighed in on whether she thought winners should be able to accept the prize via trust, and argued that even if a trust is used the identity of the winner should be made public.

However, neither the Lottery nor the Legislature have moved to make the issue more transparent, and one legislator has even filed legislation that would make it even more difficult for the public to find out who won a big prize.

In April, state Sen. Mark Montigny, D-New Bedford, filed a bill that would no longer make the identity of Lottery winners public record if passed.

The bill states in part "the Massachusetts State Lottery Commission shall not publicly disclose the name, address or other identifying information of any holder of a winning ticket or require any winning ticket holder to perform any public actions in connection with the awarding, payment or collection of prize moneys where a holder of a winning ticket provides a written request to the Commission."

The Enterprise, Lottery Post Staff

Comments

MaximumMillions

I do wonder why this is legal/possible in Massachusetts but not in other state, at least not to this extent.

WesternRedDoug

Quote: Originally posted by MaximumMillions on Nov 29, 2015

I do wonder why this is legal/possible in Massachusetts but not in other state, at least not to this extent.

If I recall correctly, Ohio and Delaware are two of a handful of states at one end, and New York and Virginia are at the other end... And in my opinion, all the states in between are different shades of anonymity that an experienced lawyer can try to navigate. 

And it always brings up the question, do I sign the ticket and then get a notery to help re-sign the ticket and transfer ownership to an entity or what?

And to quote a presidential candidate from for years ago, "corporations are people."

djpowerball1234

Quote: Originally posted by MaximumMillions on Nov 29, 2015

I do wonder why this is legal/possible in Massachusetts but not in other state, at least not to this extent.

If you are actually from Germany, It is understandable not to know the body of laws that we place upon ourselves. Massachusetts have in this matter their own laws. The federal government allows the states to govern their citizens. It is a lot more complicated but in this matter even though it is a lottery that is played almost in all states, but the reporting and governing of the lottery is up to the state

noise-gate

Every lottery winner should have the option of collecting their winnings through a Trust and not being told that if they do, they will be exposed as a winner nonetheless. It should be up to the winner to make the decision as to whether they want to go before the cameras or not. These State lottery commissions do not interview  folks who have lost hundreds of thousands of dollars playing the lottery - why should they want to interview you when you win? It should be your call, your money, your win, your choice.

pantherestates's avatarpantherestates

I think that it is dreadful that a individual who wins the lottery that it is made public record.it is like pulling a sign around ones neck that says ROB ME PLEASE!!! it is wrong and I would definitely set up a trust way before the ticket was claimed...I don't want anybody to know if I win accept the person who sets up my trust and a lawyer.

lejardin's avatarlejardin

Trust is the only way to go.  In fact make it a duo.

Teddi's avatarTeddi

A few months ago, when a poster started a thread about the importance of pushing all the states to allow for claims to be made anonymously, one respondent wrote that there has been no evidence that any lottery winner has been actually put in harms way due to strangers knowing about a lottery winner. That the only people who have suffered have done so at the hands of friends and relatives. They didn't view kidnapping and death threats a big enough factor since it was only threats, not an overt action. 

Well, hopefully gaining a stalker is enough of a detriment that they can see the importance of anonymity. Hopefully they don't need something more overt, like an actual kidnapping or murder to see publicizing a lottery winner's information brings with it a detriment that outweighs the need for "transparency". Especially since a lack of transparency has had no negative effect on the lottery in the states which allow for anonymity.

R151413's avatarR151413

People who donate large sums of money to various entities/charities etc can do so anonymously. So, I think a lottery winner should have the same option.

Teddi's avatarTeddi

Does anyone know if a person can claim via trust in GA? Says nothing on their website about it either way.

Lexuslfa

Hi there,

 

everyone I am new to this website so I figure I hello to everyone : ).  If I win a big lottery I would definitely claim as a trusts as well to protect myself and love one.  And also I have question that I want to ask that I couldn't find yet on this website.  I know that you can buy lottery from other countries but can you claim the prize if and that is a huge if you win the jackpot.

 

Hopefully the jackpot goes back up to $300+ million dollars soon.  And Good luck everyone and thank you for answering my question in advance.

maximumfun's avatarmaximumfun

First and most importantly:  welcome Lexuslfa!

as far as claiming lottery wins via trusts in mass - its nice that Mass allows this - and fascinating that RI is almost polar opposite in views re:  let everyone know everything as long as its not about ... whomever is in power.

m3347

They tried to pass legislation earlier this year in Michigan to allow lottery winners to remain anonymous but it has stalled out in the senate.  Boo Hiss!

HB 4433, Michigan: Gaming; Lottery; Multistate Lottery Games; Allow Winner to remain anonymous. Amends Sec. 25 of 1972 PA 239 (MCL 432.25).

Bleudog101

Quote: Originally posted by Teddi on Nov 30, 2015

A few months ago, when a poster started a thread about the importance of pushing all the states to allow for claims to be made anonymously, one respondent wrote that there has been no evidence that any lottery winner has been actually put in harms way due to strangers knowing about a lottery winner. That the only people who have suffered have done so at the hands of friends and relatives. They didn't view kidnapping and death threats a big enough factor since it was only threats, not an overt action. 

Well, hopefully gaining a stalker is enough of a detriment that they can see the importance of anonymity. Hopefully they don't need something more overt, like an actual kidnapping or murder to see publicizing a lottery winner's information brings with it a detriment that outweighs the need for "transparency". Especially since a lack of transparency has had no negative effect on the lottery in the states which allow for anonymity.

No harm done?  What about that poor transplanted Chicagoan who was a lottery winner and buried in concrete in his Florida driveway?  Maybe he was functionally illiterate and that 'woman' took advantage of this fact and took him to the double C's:  Cleaners and Cemetery.  Awful.

Bleudog101

Vaguely I remember the Courier-Journal, Louisville KY newspaper outed a lottery winner who claimed his winnings anonymously.  They went through the Freedom of Information Act.  Best to my recollection he did not have a Trust.  My point is can folks use the FOIA to find out anonymous lottery winners?  Personally I don't care, more power to the winners.

rgse90

I am sorry but with the use of the Internet and the way society thinks they are entitled to what you win I have to agree that this is necessary to protect the winners. Not only protecting them from strangers but also family who think they have a right to what you win because you did not earn it you won it. As sick as this is, it is a reality that has become all too popular and so for these reasons i agree that any way to keep my name out of the public viewing I would use. At one recent Thanksgiving my uncle stated that if I won lottery he expected me to take care of him, of which I stated that if I won no one would know. he got mad and does not talk to me anymore. And i did not even win yet. So with that experience and all the war stories I hear I am for blocking and keeping my name from ever coming up.

Bleudog101

Quote: Originally posted by rgse90 on Nov 30, 2015

I am sorry but with the use of the Internet and the way society thinks they are entitled to what you win I have to agree that this is necessary to protect the winners. Not only protecting them from strangers but also family who think they have a right to what you win because you did not earn it you won it. As sick as this is, it is a reality that has become all too popular and so for these reasons i agree that any way to keep my name out of the public viewing I would use. At one recent Thanksgiving my uncle stated that if I won lottery he expected me to take care of him, of which I stated that if I won no one would know. he got mad and does not talk to me anymore. And i did not even win yet. So with that experience and all the war stories I hear I am for blocking and keeping my name from ever coming up.

Sorry your Uncle showed his true colors.  I  this too.  My Sister once said to me and then to my older Brother 'if you win the lottery, you HAVE to give me some'.  I don't have to do anything but stay white and die is what I was thinking of telling her.  Then there's the jokers @ work and I tell them to their face I win and you'll never hear of or see me again.  Lots of unfriending on Facebook!!

Gleno's avatarGleno

This is great news to read and hope all big winners use this important strategy to protect themselves and their families.

Party

zephbe's avatarzephbe

He/She can enjoy the winnings in peace.

HoLeeKau's avatarHoLeeKau

I agree that with the advent of the internet it's way too easy to find and stalk people and this has made it even more important for winners to remain anonymous.  It would be very difficult to disappear unless you bought your new property in the name of a corporation or something.  Heck, these "people find" websites even follow renters.  I assume they get their info from credit cards or banks or something.  So you'd have to get all your mail sent to a drop box, and probably have that as your driver's license address too.  It seems like everyone including government entities now sell our information to the highest bidder.  It's absolutely disturbing.

I think it would actually be to the lottery's benefit to allow people to remain anonymous TO THE PRESS AND OTHER OUTSIDERS.  That way, they could require the winner to provide their name and info so that the lottery could check to see if they owe child support, and make sure they don't work for the lottery or are connected to someone who does.  If they were required by penalty of law to keep that info private, I'd happily supply it so that other lottery players could have some peace of mind that due diligence is being done to try to keep the games and winners honest.

As it is, if a winner collects with a trust, even the lottery doesn't know their name and can't do the checks to make sure it's a legitimate win.

JezzVim

Smart!

zephbe's avatarzephbe

Quote: Originally posted by Bleudog101 on Nov 30, 2015

Sorry your Uncle showed his true colors.  I  this too.  My Sister once said to me and then to my older Brother 'if you win the lottery, you HAVE to give me some'.  I don't have to do anything but stay white and die is what I was thinking of telling her.  Then there's the jokers @ work and I tell them to their face I win and you'll never hear of or see me again.  Lots of unfriending on Facebook!!

After I told my sister I'm not sharing my lottery winnings with anybody who doesn't play the lottery, she buys lottery tickets and gives them to me to check them.  SC lets you claim anonymously.

KY Floyd's avatarKY Floyd

Quote: Originally posted by HoLeeKau on Nov 30, 2015

I agree that with the advent of the internet it's way too easy to find and stalk people and this has made it even more important for winners to remain anonymous.  It would be very difficult to disappear unless you bought your new property in the name of a corporation or something.  Heck, these "people find" websites even follow renters.  I assume they get their info from credit cards or banks or something.  So you'd have to get all your mail sent to a drop box, and probably have that as your driver's license address too.  It seems like everyone including government entities now sell our information to the highest bidder.  It's absolutely disturbing.

I think it would actually be to the lottery's benefit to allow people to remain anonymous TO THE PRESS AND OTHER OUTSIDERS.  That way, they could require the winner to provide their name and info so that the lottery could check to see if they owe child support, and make sure they don't work for the lottery or are connected to someone who does.  If they were required by penalty of law to keep that info private, I'd happily supply it so that other lottery players could have some peace of mind that due diligence is being done to try to keep the games and winners honest.

As it is, if a winner collects with a trust, even the lottery doesn't know their name and can't do the checks to make sure it's a legitimate win.

"It would be very difficult to disappear unless you bought your new property in the name of a corporation or something."

Bummer. If only there was some  way of  disappearing, huh?

"if a winner collects with a trust, even the lottery doesn't know their name and can't do the checks to make sure it's a legitimate win."

I'll bet Eddie Tipton thought that, too.

Get paid's avatarGet paid

In my state u have the option of going public or a trust.

benir4u's avatarbenir4u

The trust is the best way to go it will give you Safety, Security, and with my family it will be a necessity LOL.Boxing

haymaker's avatarhaymaker

Quote: Originally posted by Lexuslfa on Nov 30, 2015

Hi there,

 

everyone I am new to this website so I figure I hello to everyone : ).  If I win a big lottery I would definitely claim as a trusts as well to protect myself and love one.  And also I have question that I want to ask that I couldn't find yet on this website.  I know that you can buy lottery from other countries but can you claim the prize if and that is a huge if you win the jackpot.

 

Hopefully the jackpot goes back up to $300+ million dollars soon.  And Good luck everyone and thank you for answering my question in advance.

Welcome to LP from a former resident of Westminster, X Bolsa/ Ward.

 

I'd be wary about buying from other countries, not sure it's legal either.

Teddi's avatarTeddi

Quote: Originally posted by HoLeeKau on Nov 30, 2015

I agree that with the advent of the internet it's way too easy to find and stalk people and this has made it even more important for winners to remain anonymous.  It would be very difficult to disappear unless you bought your new property in the name of a corporation or something.  Heck, these "people find" websites even follow renters.  I assume they get their info from credit cards or banks or something.  So you'd have to get all your mail sent to a drop box, and probably have that as your driver's license address too.  It seems like everyone including government entities now sell our information to the highest bidder.  It's absolutely disturbing.

I think it would actually be to the lottery's benefit to allow people to remain anonymous TO THE PRESS AND OTHER OUTSIDERS.  That way, they could require the winner to provide their name and info so that the lottery could check to see if they owe child support, and make sure they don't work for the lottery or are connected to someone who does.  If they were required by penalty of law to keep that info private, I'd happily supply it so that other lottery players could have some peace of mind that due diligence is being done to try to keep the games and winners honest.

As it is, if a winner collects with a trust, even the lottery doesn't know their name and can't do the checks to make sure it's a legitimate win.

You know what's weird, used to be celebrities bought properties and conducted business under the shield of corporations, but that's not really working any more. I've seen TMZ and E! out celebrities and the names of their corporations when they buy a home. Then they publish the photos and features of the house.

If a D-list celebrity like 50 Cent has to shell out $9K a month on security, the lottery has some nerve publishing a winner's information when they're not picking up that tab. They want the free publicity that comes with outing big winners, then they should advertise everything. Kidnapping and death threats. Stalking. Harassment. Hitmen. Murder.

They want to expose winners, winners should expose them right back. People like Tipton have no bearing on anything. It's their responsibility to have security measures in place to keep that from happening. Tipton isn't a reason to put lives in danger. He's a reason for MUSL  to get their act together and have more control of who they give access to what. Which other billion dollar enterprise has such laxity? Publishing a name is a pi$$ poor check and balance system.

Teddi's avatarTeddi

Quote: Originally posted by Bleudog101 on Nov 30, 2015

No harm done?  What about that poor transplanted Chicagoan who was a lottery winner and buried in concrete in his Florida driveway?  Maybe he was functionally illiterate and that 'woman' took advantage of this fact and took him to the double C's:  Cleaners and Cemetery.  Awful.

They didn't view that as a direct cause and effect of the lottery publishing his name. They may have a point because Shakespeare told a lot of people who hadn't known he'd won, that he'd won. Had this been a Camelot lottery, he would have been advised not to do that. Unfortunately, if you hand a person who can't read or write millions of dollars with no guidance, I really don't see anyway that was going to end well. I mean look at that father/son moron duo. Did anyone really think that was going to end any other way?

You know how experienced wedding planners can tell you exactly which couples will get a divorce? We know which winners are destined for the poor house. The publicity just speeds it along.

RedStang's avatarRedStang

 I hope Brady McDevitt has a big gun because he might become the next Pain & Gain victim by accident.

Artist77's avatarArtist77

It depends on how your state law defines a person. In Virginia, it excludes a trust. DC allows a trust to claim money.

chris-chase

What about that clown that got busted messing and or rigging the hot lotto? If he went the trust route 

he might have had a better shot at getting away with it? 

Transparency seems to be the best method for all us non-winners.

Stack47

Quote: Originally posted by chris-chase on Nov 30, 2015

What about that clown that got busted messing and or rigging the hot lotto? If he went the trust route 

he might have had a better shot at getting away with it? 

Transparency seems to be the best method for all us non-winners.

Forming a trust doesn't mean the state lottery will issue the check without an investigation and everyone who cashed a prize over $600 knows we almost have to prove we own no back taxes, child support, or whatever state law dictates. Lotteries don't allow prize winners to portion out their before tax prize so a trust is an option. Lotteries are state agencies and it's possible  eventually the state will release the winners name because of the Freedom of Information Act.

travelintrucker's avatartravelintrucker

People are smart to protect their anonymity. You don't want relatives that you didn't know existed coming out the woodwork to ask for cash.

travelintrucker's avatartravelintrucker

Welcome to LP!

Coin Toss's avatarCoin Toss

Quote: Originally posted by MaximumMillions on Nov 29, 2015

I do wonder why this is legal/possible in Massachusetts but not in other state, at least not to this extent.

Maybe Mass. having an 'unusual' number of wise guys winning jackpots has something to do with it.

lucky6025

funny how you can use a trust to claim lottery prize without being known in Mass yet can't use tax form 5754 claiming lottery pool to have taxes taken out of winnings for taxes in lump sum right up front. in mass 1 person collect winnings the has to give out names of where money in pool s going so money get taxed twice making the state tons of extra money. alot of states allow lottery pools to use 5754 tax form to claim winnings. makes me wonder if trust was allowed because someone that was not supposed to be playing won and used this method to get their money.

Erzulieredeyes's avatarErzulieredeyes

I wouldn't bother setting up a trust to claim my money for anything under $2 million.

HaveABall's avatarHaveABall

Quote: Originally posted by Erzulieredeyes on Dec 1, 2015

I wouldn't bother setting up a trust to claim my money for anything under $2 million.

Erzulieredeyes, would that be Gross or Net $2M?

nennis69

Kansas does not require you to release your identity if you win Party

Groppo's avatarGroppo

Man, if I ever win,
I'm just going to do whatever the state needs as far as identity.

What's all this paranoia about, other than keeping Lawyers in business?
I mean what the heck is going to happen to me, if I choose not to go by way of a trust?   Not one person in this thread has disclosed that.
Not even the article did that.

If I'm shot, because I've been found to have zillions of bucks, it better be in the head, where I'm dead for certain and can't get up to testify, because I won't care.  Otherwise, I see problems.

SO PLEASE, Make me feel stupid.   Answer this for me: Why should I name a trust? What is a trust?   What the heck does it do, besides make some jive a$$ Lawyer more rich?

Groppo's avatarGroppo

Quote: Originally posted by Groppo on Dec 1, 2015

Man, if I ever win,
I'm just going to do whatever the state needs as far as identity.

What's all this paranoia about, other than keeping Lawyers in business?
I mean what the heck is going to happen to me, if I choose not to go by way of a trust?   Not one person in this thread has disclosed that.
Not even the article did that.

If I'm shot, because I've been found to have zillions of bucks, it better be in the head, where I'm dead for certain and can't get up to testify, because I won't care.  Otherwise, I see problems.

SO PLEASE, Make me feel stupid.   Answer this for me: Why should I name a trust? What is a trust?   What the heck does it do, besides make some jive a$$ Lawyer more rich?

I meant to add to my previous post that a lot of Lawyers are very good, and take care of these things, professionally, as they're expected.

But never having understood what a Trust is or does, just confuses the whole money thing for me, in the event I win the BIG PRIZE, which I 
know will likely NOT happen.

Still, I need to know what the "Trust thing" is all about.

lucky6025

here is what a nominee trust is

Nominee trust is a trust created for the purpose of holding property for beneficiaries whose identities are kept secret. In such trusts, the beneficiaries have the power to direct the trustee's actions regarding the trust property. Nominee trusts also refer to an arrangement for holding title to real property under which one or more persons or corporations, under a written declaration of trust, declare that they will hold any property that they acquire as trustees for the benefit of one or more undisclosed beneficiaries. The nominee trust was conceived as an estate-planning vehicle to allow a decedent’s real estate to pass to beneficiaries without the necessity of it being probate.

that being said it depends on the person setting up the trust with the trustee's most are doing this to keep from being known as winning the lottery to keep people from coming to house/calling on phone/ emailing sending letters asking for money because of their problems. neighbors thinking each is entitled to something, relatives thinking each is entitled to something. whole lot of people want a piece of you new winnings and will do what ever to get some. Just a greedy world we live in. don't know if this helped just my thoughts on the matter.

KY Floyd's avatarKY Floyd

"But never having understood what a Trust is or does, just confuses the whole money thing for me"

Sounds like an excellent reason to seek professional help if you were to win, no?

Groppo's avatarGroppo

Quote: Originally posted by lucky6025 on Dec 2, 2015

here is what a nominee trust is

Nominee trust is a trust created for the purpose of holding property for beneficiaries whose identities are kept secret. In such trusts, the beneficiaries have the power to direct the trustee's actions regarding the trust property. Nominee trusts also refer to an arrangement for holding title to real property under which one or more persons or corporations, under a written declaration of trust, declare that they will hold any property that they acquire as trustees for the benefit of one or more undisclosed beneficiaries. The nominee trust was conceived as an estate-planning vehicle to allow a decedent’s real estate to pass to beneficiaries without the necessity of it being probate.

that being said it depends on the person setting up the trust with the trustee's most are doing this to keep from being known as winning the lottery to keep people from coming to house/calling on phone/ emailing sending letters asking for money because of their problems. neighbors thinking each is entitled to something, relatives thinking each is entitled to something. whole lot of people want a piece of you new winnings and will do what ever to get some. Just a greedy world we live in. don't know if this helped just my thoughts on the matter.

Luck6025,

Your reply did in fact help educate me on trusts. But still, I would want to do the most economical thing,
while I would plan to make donations, to St. Jude's, Shriners, and Mercy Ship. In such a case of a significant win (significant => 200,000,000), I would bypass the trust and make those personal donations.

The Bible says not to make a donation and blow your horn (ideal situation for a trust).
But, I would have to ward off the rest of those people, as described in your second paragraph that would definitely have to be informed, and expected to understand.

Thanks again

JJ

Groppo's avatarGroppo

Quote: Originally posted by KY Floyd on Dec 2, 2015

"But never having understood what a Trust is or does, just confuses the whole money thing for me"

Sounds like an excellent reason to seek professional help if you were to win, no?

Anything to add to Lucky6025's excellent reply?

Erzulieredeyes's avatarErzulieredeyes

Quote: Originally posted by HaveABall on Dec 1, 2015

Erzulieredeyes, would that be Gross or Net $2M?

I would just do a LLC for anything under 2million net...most likely claim in my own name for anything under 2million though most lottopost members suggest otherwise. A trust doesn't protect against people with bad intentions to do harm or take your $ away. Esp if your buying flashy cars or living in fancy neighborhoods. Trust fund babies get taken advantage of all the time. It's not fool proof or guaranteed a life of sanity or anonymity just because u put ur money into a trust.

Groppo's avatarGroppo

Quote: Originally posted by Erzulieredeyes on Dec 3, 2015

I would just do a LLC for anything under 2million net...most likely claim in my own name for anything under 2million though most lottopost members suggest otherwise. A trust doesn't protect against people with bad intentions to do harm or take your $ away. Esp if your buying flashy cars or living in fancy neighborhoods. Trust fund babies get taken advantage of all the time. It's not fool proof or guaranteed a life of sanity or anonymity just because u put ur money into a trust.

OK, something new to me, again. Why would you set up an LLC (if it's the same as a normal Limited Liability Corporation) ?
So, what if I win, and don't set up either a trust or an LLC?

What's the worst thing that could happen to me?

jjtheprince

Personally I wouldn't see the need for it if I won.

Lotteries are way too easy to win now compared to the past, so winners are very common & it's not some big deal anymore.

If I win, yeah take my picture, publish my name, whatever I don't care.  I don't think anyone would even notice, care, or even bother me.  If they did, I have a place on another continent I could disappear to where I guarantee that I would never be found.

KY Floyd's avatarKY Floyd

Quote: Originally posted by Groppo on Dec 4, 2015

OK, something new to me, again. Why would you set up an LLC (if it's the same as a normal Limited Liability Corporation) ?
So, what if I win, and don't set up either a trust or an LLC?

What's the worst thing that could happen to me?

The worst thing? I guess that depends on what kind of things you find unpleasant. Here's one scenario. On the way back from claiming your prize you could be in a car accident that leaves you in a vegetative state. Depending on what you think is worse, your family (or somebody you don't even know) will decide to either let you be fed through a tube for the rest of a long and incredibly boring life, or pull the plug in a month or two. I guess it really wouldn't matter given your sorry state, but since the accident was your fault all the money you won, along with every dime you already had, could end up in somebody else's bank account.

Alternatively you might lose it all to somebody who was about to knock on your door to ask for a handout but tripped on your welcome mat and broke their back.

"Anything to add to Lucky6025's excellent reply?"

Sure. Reading what somebody else cut & pasted from the web doesn't make you nearly as knowledgeable as somebody who deals with this sort of thing day in and day out as their living. Even if you were that knowledgeable you're not as objective as somebody else. There's a reason for the adage that “he who represents himself has a fool for a client.”

tg636

There is nothing to be gained by having your picture taken and your name out there to be a target for beggars, stalkers, thieves, fake lawsuits, sob stories, cyberattacks, etc. You aren't going to get a dime extra for helping the lottery get publicity. Unless you find the publicity a benefit, why do it? 

I know someone who won pretty big in the pre-internet age and he told me it took a solid year for the crazies to drop off and target someone else, so I imagine with the entire world informed on the internet it is much worse now. 

I'm as curious as anyone else about who wins, but that is the world we live in. The people who live next door to the lottery winner might be just as rich but they don't have the people mentioned above showing up to beg for money because their name isn't announced in the media. There is a reason why the guy with $50 million doesn't announce to the world "Hey, I have $50 million, I'm super rich, here's my address." 

Funtimz's avatarFuntimz

Quote: Originally posted by Teddi on Nov 30, 2015

They didn't view that as a direct cause and effect of the lottery publishing his name. They may have a point because Shakespeare told a lot of people who hadn't known he'd won, that he'd won. Had this been a Camelot lottery, he would have been advised not to do that. Unfortunately, if you hand a person who can't read or write millions of dollars with no guidance, I really don't see anyway that was going to end well. I mean look at that father/son moron duo. Did anyone really think that was going to end any other way?

You know how experienced wedding planners can tell you exactly which couples will get a divorce? We know which winners are destined for the poor house. The publicity just speeds it along.

How did it end for the father/son "moron" duo...?

myturn's avatarmyturn

I renewed my Mass lottery subscription, a bit of fun for me while helping local communities in Massachusetts.


[?IMG]

Megabuck Double is a $1 wager and is drawn two times a week. Tickets can be purchased in 3-month , 6-month , and 1-year increments. You don't have to reside in Massachusetts to participate.

SPECIAL HOLIDAY PRICING

SEASON TICKETS MAKE GREAT GIFTS!

1 Year Season Ticket = $100
(104 drawings)Discounted price $90-SAVE $14

  • Order Subscriptions By Phone:
  • 1-800-222-8587 (TKTS)

 

Massachusetts Megabucks Doubler subscriptions are available across the United States.

Use a debit card to purchase subscriptions as credit card issuers may change additional fees. There are never any additional charges with debit cards.

BuyLow's avatarBuyLow

Quote: Originally posted by MaximumMillions on Nov 29, 2015

I do wonder why this is legal/possible in Massachusetts but not in other state, at least not to this extent.

FL allows claiming by trust.

Drenick1's avatarDrenick1

Quote: Originally posted by BuyLow on Jan 13, 2016

FL allows claiming by trust.

If that's true I wonder why Gloria M didn't go that route when she won the PB jackpot? Does anyone know if North Carolina allows Trust to claim lottery prizes?

MaximumMillions

Quote: Originally posted by BuyLow on Jan 13, 2016

FL allows claiming by trust.

Are you sure about that? 

Don't they also release the personal info of winners?

Like drenick1 says below, why wasn't Gloria advised to do so?

Can you point me to the article/law on that? Not being antagonistic, just curious.

Redd55

They cant stop you from forming a trust. However, that will not stop them from releasing your name and home town if state law mandates it.

MaximumMillions

Quote: Originally posted by Redd55 on Jan 13, 2016

They cant stop you from forming a trust. However, that will not stop them from releasing your name and home town if state law mandates it.

Right, but the question also is: Whose name will be written on the oversized check?

Redd55

Quote: Originally posted by MaximumMillions on Jan 13, 2016

Right, but the question also is: Whose name will be written on the oversized check?

Doesnt matter whose name is on the big check.  The law says the winner's name must be public info.  In Calif you do not have to have your photo taken and you do not have to say anything that can then be reported to the press.

TheMeatman2005's avatarTheMeatman2005

Quote: Originally posted by Erzulieredeyes on Dec 3, 2015

I would just do a LLC for anything under 2million net...most likely claim in my own name for anything under 2million though most lottopost members suggest otherwise. A trust doesn't protect against people with bad intentions to do harm or take your $ away. Esp if your buying flashy cars or living in fancy neighborhoods. Trust fund babies get taken advantage of all the time. It's not fool proof or guaranteed a life of sanity or anonymity just because u put ur money into a trust.

LLC's take about 4-6 weeks to form, whereas a trust can be set up in about 2-3.

If you won, even $2 mil, would you want to wait the extra time before claiming your prize?

One-Day

In Washington state there is no such luck.  You can claim through trust I believe but your name is required and they will provide it to the press if they come snooping around.  The court was clear in the last lottery case here.  The public has the right to know who the winner is they said (paraphrasing).

dk1421's avatardk1421

From the limited research I have done, LLC seems to be the way to go. Of course, if I win, I'd definitely check out the pros and cons of both - using a lawyer, financial planner, and a tax guy.

My understanding (which could be wrong, out of date, etc) is that in a Trust, it is a Board that decides how much to give you every year. If you decide you want a jet, they are the ones to vote on whether or not you are allowed to buy one. Whereupon, an LLC is a limited-liability corporation - you are in charge. In fact, I believe you can have an LLC inside of an LLC. That way, you can dissolve the one everyone now knows since you won, and protect your money in one that no one knows the name of.

There are advantages and disadvantages to both, so it's best to find someone you trust to help you the process.

One-Day

I believe you are describing the blind trust.  There are other better trusts.

BuyLow's avatarBuyLow

Quote: Originally posted by MaximumMillions on Jan 13, 2016

Are you sure about that? 

Don't they also release the personal info of winners?

Like drenick1 says below, why wasn't Gloria advised to do so?

Can you point me to the article/law on that? Not being antagonistic, just curious.

Look at the PDFs on the the FL Lottery website....winners for FL Lotto and Powerball, several have only a trust and trustee listed, most used their names in the trust (duh) but why do that if not required.

MaximumMillions

Quote: Originally posted by BuyLow on Jan 13, 2016

Look at the PDFs on the the FL Lottery website....winners for FL Lotto and Powerball, several have only a trust and trustee listed, most used their names in the trust (duh) but why do that if not required.

Hm, you mean the winners gallery?

Because I looked at the claims form and the privacy note, but that one is only about back child support.

Will investigate further.

And yeah,I don't understand why people don't use the means they have.

 

Edit:

It seems most trust users give a name too:

 

http://www.flalottery.com/exptkt/pb-jackpotRetailer.pdf

BuyLow's avatarBuyLow

Look at #2 on the back of the claim form for the FL Lottery also. edit...heck read all of it.....

 

MaximumMillions

Quote: Originally posted by BuyLow on Jan 13, 2016

Look at #2 on the back of the claim form for the FL Lottery also. edit...heck read all of it.....

 

Aaaah 

So you can use a lawyer as a proxy (unless that's only for handicapped people)

BuyLow's avatarBuyLow

Quote: Originally posted by MaximumMillions on Jan 13, 2016

Aaaah 

So you can use a lawyer as a proxy (unless that's only for handicapped people)

Read #5 US Person can be an entity...... Wink

MaximumMillions

Quote: Originally posted by BuyLow on Jan 13, 2016

Read #5 US Person can be an entity...... Wink

However did I miss all that? LOL

CashCrown

A few comments / questions about the Power Ball Lotto game - and tonight is gonna be rough on small retail stores.  Which brings up the first comment.

  1. The reasoning to reveal the Winner(s) of the jackpot is to "show that there IS a real winner(s), not some scam, scheme, etc."  Well, even IF winner(s) aren't plastered on every TV channel, newspaper, I would assume that someone or a couple of someone's WON, right?  I don't need to see them or their picture holding a monster check.  A.  It is dangerous to the winner - everyone from relatives to the Russian mob is watching this, kidnapping is NOT a frivolous possibility when you are talking about suddenly being worth FIVE TIMES the total worth of, say Taylor Swift (worth @ $300 MILLION).  It should be a choice and some idiot wanted to provide anonymity for 1/4 the Jackpot amount!  KMA, dude.  You can take home 1.5 BILLION but can't choose whether to remain anonymous on winning!?  Get real.  However, a winner has time to line-up security PROS and make arrangements before being made to accept (a Trustee can do that, but 'Open Records Law' permits some knowledge as to WHO the Trustee of Corp. is and the name of who set-up Trust.
  2. I like the advice of 2 of the Shark Tank crew - Kevin said "because of such a huge amount, get into Four or Five of the biggest, largest banks and buy Govt. Securities that pay 4% (and are almost 100% secure) and you will make @ $600,000 a MONTH without touching the principle (if you take the Cash Option.  That way, you make 2/3 of a Million USD without touching ANY of the money and can keep this up forever - the money isn't guaranteed by the bank, but investment into these unique investments is like a buffer and not ALL four banks would go broke or go under.  That way, he said it is easier (and you make money) keeping track of what is a single investment idea and not spending any of the original money.  Then, when you get your first $600K, you can spend, buy whatever you need-want, AND - this is good - you can GIFT relatives (or whoever) some money and with this one caveat: "I'm giving you this ONLY ONE TIME - the Trustee has control (Shark 'Barbara' says to make a Trustee the 'bad person') and then, it isn't YOU - it's a Trustee - and only allowed ONE $ gift - period."  There is a slight risk "A" bank could default, but not likely"- FDIC guarantees up to $100K per acct, but it would be <snip> near impossible to keep track or even make time to divide all that money.  So, it's not like an "end of World" issue if CitiBank went under (and everyone would lose money, all of it).  Good plan and it would give you time to get yourself 'out of Dodge' by then.  And, even IF your name was found out, you would be 'somewhere-nowhere'. This kind of money is different - so, if you can 'think it', well it can be done.
  3. Secure yourself-your money-your future - your family, kids or parents, someone very special or all of them - with this one plan.  And, best of all, you would never, ever need to have 500 people to handle your worth or have continued callsl.  Keep it very simple - no need to go into stocks, or buy islands, or anything - if you played it right, you could do this:  Say it's all in place, you bought the Municipal-Govt paper, pays you 4% and first month, you make $600K.  But, you are going to spend SOME money, right? Of course, so if you just made the $600K every month and spent a Maximum of $1,200,000 that first year, you would STILL make an 'additional $6,000,000' the first year.  So, the 2nd year, you could spend $3 MILLION and make an additional $6 Million (smart - you would roll the first $6 Million into the 4% paper and now, you can spend more AND make more - and you STILL haven't touched the original :)  Imagine where you would be in 10 years!  And, with a Finance Wizard-Tax Professional, you could owe ZERO amount of TAX with buying-providing charitable 'gifts' that would off=set your money being made on your investments.  Churches, schools, hospitals and 'land for use' = you own the land, but Organizations use it for operations, you are donating the SPOT and location for the Charity to flourish.
  4. You are SET - You have a PLAN - You have a Trust & Trustee - You are careful to be hidden and secure - Your wealth increases and the items you purchase are the type of items that have value that 'remains/grows AND sustains' - land, vacation mansions, collector items, paintings - you get the idea.  Even Pro Sporting Teams (if you are into that) and, yes, they make money, too.  So, charitable goods that help with taxes, help the Charity, and can make money, as well. Your TOP NOTCH Trustee + Financier will show you the way. 
  5. So, you will get to spend = a LOT or "a whole bunch of a TON of a LOT of money" and not spend all your time watching it.  You enjoy it with a plan like Kevin O'Leary said to do.  Even IF you and another split it the Jackpot?, you are fine - even IF there were 25 people - you are FINE.

 

Which brings me to a question - I had purchased several tix ($21 total) and was sitting outside, and was watching the line of people - and suddenly, they all came out looking upset.  I asked what happened (thinking it was a malfunction, machine issue) THEN, I was told that - quote- "The drawing was 10-12 minutes EARLY, cut off early and drawn early.  Did anyone else hear about this???  IF true, then WHY would this be happening?  Why would the LOTTO deciders start the drawing early and cut-off MILLIONS of people who were buying tix?   This bothers me, because it tends to bolster my 'already set belief' that KEY COMBINATIONS are known and once a single 'set' with the '13' bonus ball was found?  Officials decided to 'run with it' and knew there were no winners at that instant.  What other reason could there be to forfeit money, lose money?  It had better be good reason.  Assuming that the early draw was a FACT.  About 12 minutes early is what I heard.  And, yes, I am one who may believe that certain modes of action are utilized by all Lottery games, and in all States.  It's all about the Watchers.  Exactly who is it, then that are the ones chosen / hired to 'watch the watchers' of LOTTO ? 

CC     GL tonight 

 

This post has been automatically changed by the Lottery Post computer system to remove inappropriate content and/or spam.

OneTrickpony's avatarOneTrickpony

Thank you CashCrown!  That is very good advice for the winner(s) of tonights Powerball or other large sums. 

End of comments
Subscribe to this news story