|Posted: February 4, 2016, 8:19 am - IP Logged|
I love this topic, because it is the "Happy Place" that I go to when I'm down in the dumps and need a little distraction from reality.
First, upon realizing that I won...let's say $50 million after Federal and State taxes, I would IMMEDIATELY move to Florida or Wyoming (or a state with no state income tax), establish residency and getting a new driver license. I would establish a trust to collect my winnings, have an experienced team with a Tax Attorney (experienced with lottery or windfall new money), CPA, Financial Planner, etc. standing by.
Once I have the $50 million, I will give myself $3 million to "blow". I would gather my mother and 8 siblings and offer them a choice of $100,000 now (and pay taxes on it) OR $14,000 a year tax-free for the rest of your life. They would sign an ironclad agreement to that effect. I have a couple of greedy sisters who will jump at $100,000 now (and it will be gone in no time), but they can no longer bug me for any more money, per the agreement. My 21 nieces and nephews will each get $14,000 a year for 10 years (in Trust for those few still under 18). I feel it is just enough to help them along, but not make them dependent on a handout.
I would buy reasonable houses with reasonable property taxes (winter in Florida or Nevada, summer in Wyoming). Of course, ooooh, cars are my weakness. I would have to have a 4X4 SUV for the Wyoming home, like a GMC Yukon to haul my snowboarding and skiing champ nephews and their equipment, and give myself a fighting chance against moose and elk who wander into the road at night. Maybe the same vehicle for Lake Tahoe (Reno) or a waterway home in Florida to haul a boat and fishing gear around. I would also have a "fun" car, like an Audi R8 Spider or Mercedes AMG GT S or whatever tickles my fancy.
I would establish a college scholarship charitable trust, and give to The American Red Cross, Teton County, WY and Brevard County, FL Search and Rescue.
Meanwhile, $47 million will be invested in tax-free municipal bonds, mutual funds and maybe an annuity. Let's say the after tax shake-out averages 5% overall, that is $2,390,000 a year. Plus, depending on when I established residency in another state, let's say June or 6 months, NC would have to give back 1/2 of the $5,000,000 (or whatever) in taxes that they held from my payout. After paying my expenses for the year, my families' trust payments, and the charity trust I would reinvest the rest to ensure future income.