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If you go the LLC or Trust route...

Topic closed. 12 replies. Last post 11 months ago by Teddi.

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LA Ca.
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Posted: February 12, 2016, 9:57 pm - IP Logged

What's to stop you changing the name of the trust within a week of cashing the check or transferring everything from the LLC to a trust etc to hide your identity?Would either work?

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    LA Ca.
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    Posted: February 17, 2016, 3:09 pm - IP Logged

    Anyone?

      MaximumMillions's avatar - Lottery-013.jpg

      Germany
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      Posted: February 17, 2016, 3:26 pm - IP Logged

      What's to stop you changing the name of the trust within a week of cashing the check or transferring everything from the LLC to a trust etc to hide your identity?Would either work?

      I don't think you can rename a trust or llc, but you can always transfer the assets to a different llc or trust and disassemble the "old" one.

        TheMeatman2005's avatar - lightening
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        Posted: February 17, 2016, 5:06 pm - IP Logged

        I don't think you can rename a trust or llc, but you can always transfer the assets to a different llc or trust and disassemble the "old" one.

        I'm not sure about this, but if you transfer the assets from one trust to another, you have to pay taxes on the amount transferred.

        What a waste of money that would be.

        The Meatman

        “The quickest way to double your money is to fold it in half and put it in your back pocket.” Will Rogers

        Winning happens in a flash, Like A Bolt Of Lightning!  Patriot

          Coin Toss's avatar - shape barbed.jpg
          Zeta Reticuli Star System
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          Posted: February 18, 2016, 12:44 am - IP Logged

          What do LLCs have to do with lottery winnings?

          Trusts, sure, but a LLC?

          As far as I know, a LLC is a way of setting up a business so only the business assets can be gone after by others if something happens to trigger that, and not personal assets.

          As far as a lottery win, what business are you protecting with a LLC?

          Just my $.02

          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.

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            LA Ca.
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            Posted: February 21, 2016, 1:08 am - IP Logged

            I've noticed that some winners claim the prize under an LLC instead of a trust. There must be some advantage to it?

              TheMeatman2005's avatar - lightening
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              Posted: February 21, 2016, 8:30 am - IP Logged

              What do LLCs have to do with lottery winnings?

              Trusts, sure, but a LLC?

              As far as I know, a LLC is a way of setting up a business so only the business assets can be gone after by others if something happens to trigger that, and not personal assets.

              As far as a lottery win, what business are you protecting with a LLC?

              Just my $.02

              Hi Coin,

              As you stated in your reply, an LLC is a way of setting up a business so only the business assets can be gone after by others if something happens to trigger that, and not personal assets.

              Wouldn't you want that kind of protection against anything happening to your assets?

              You don't get that type of protection with a trust.

              An LLC is an entity upon itself and protects your assets just in case something happens and you get sued...personally. They can't go after or take what is in the name of the LLC

              The Meatman

              “The quickest way to double your money is to fold it in half and put it in your back pocket.” Will Rogers

              Winning happens in a flash, Like A Bolt Of Lightning!  Patriot

                Coin Toss's avatar - shape barbed.jpg
                Zeta Reticuli Star System
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                Posted: February 21, 2016, 10:19 am - IP Logged

                Ah, got it, thanks Meatman.

                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.

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                  LA Ca.
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                  Posted: February 25, 2016, 1:07 am - IP Logged

                  Which brings up the question:

                  What happens if you buy a car in the companies name & get in a wreck that hurts someone... or a boat & someone falls off it & drowns, are the assets of the LLC then at risk?

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                    Posted: February 25, 2016, 2:21 am - IP Logged

                    Hi Coin,

                    As you stated in your reply, an LLC is a way of setting up a business so only the business assets can be gone after by others if something happens to trigger that, and not personal assets.

                    Wouldn't you want that kind of protection against anything happening to your assets?

                    You don't get that type of protection with a trust.

                    An LLC is an entity upon itself and protects your assets just in case something happens and you get sued...personally. They can't go after or take what is in the name of the LLC

                    "They can't go after or take what is in the name of the LLC"

                    That's a great example of why the vast majority of people should consult competent professionals if they win the lottery.

                    Setting up an LLC to run a business is a great way to isolate your personal assets from the business. If your business is renting apartments, an LLC will protect your personal assets if a tenant falls down the stairs and sues the entity that owns the apartment building. That's useful protection, but it doesn't mean the injured tenant won't end up owning the apartment building if there's not enough insurance coverage. If the only business of the LLC is holding and managing the  money from a windfall it's much less likely to be sued, but there are no absolute guarantees.

                    More importantly, if you are sued personally your assets will include your membership interest in the LLC.  The LLC offers some protection, but it doesn't offer complete protection. It's generally true that a creditor can't directly take assets of the LLC , but they can definitely go after them, and they may succeed in getting them.

                      Teddi's avatar - Lottery-008.jpg

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                      Posted: February 25, 2016, 8:52 pm - IP Logged

                      I've noticed that some winners claim the prize under an LLC instead of a trust. There must be some advantage to it?

                      You are correct. I've thought the same thing. Why claim in an LLC if there wasn't some personal advantage to doing so? I've had about 3 LLCs and I still can't figure out what the great advantage would be for a lottery winner. I've been told that it's merely a buffer name between yourself and the money. But I personally don't get why anyone would go through the bother. In the states that I had my LLC, my name was just a click away. By state law, a legal name had to be given and it could not be anonymous. If someone wanted to find out who was behind the LLC, all the had to do was go on one of a thousand websites to find me.

                      But perhaps it's different in different states. I'd think if it was that advantageous everywhere, everyone would claim via a LLC, so the ones that do, might be given added identity protection other states do not have.

                      Even so, while an LLC is great at protecting your personal assets should a business fail, creditors are owed or lawsuits are filed, by its very name, the liability protection is limited. And actually, the liability protection may be non-existent should a judge feel the business was not being operated as such, and was instead really there for personal use.

                      If you aren't allowed to claim anonymously, I'd think it would be more prudent to take out an umbrella policy and hope for the best. If you get sued, at least there's a nice big insurance company wall between the claimant and your assets. I'd asked this (your) question on AVVO last year but got no response. Maybe I'll try again with different lawyers.

                        savagegoose's avatar - ProfilePho
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                        Posted: February 26, 2016, 2:49 am - IP Logged

                        you own your house and car in a LLC, you rent the house from the LLC, so when some joker climbs the fnce and breaks his head, he cant sue you, the lotto winner, he sues the LLC; the property owner, or thats how i figure you use em.

                        2014 = -1016; 2015= -1409; 2016  = -1171; 2017 = ?  TOT =  -3596

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                          Posted: February 26, 2016, 8:00 am - IP Logged

                          you own your house and car in a LLC, you rent the house from the LLC, so when some joker climbs the fnce and breaks his head, he cant sue you, the lotto winner, he sues the LLC; the property owner, or thats how i figure you use em.

                          I'm not really sure why people keep saying you can't get sued if an incident occurs on property owned by your LLC. There are a whole lot of situations where you can be personally sued even if the LLC owns the property. 

                          Plus, LLCs require certain criteria to be met for you to be shielded from certain obligations and liability claims. If they aren't met, you aren't protected. 

                          Using a LLC as an extension of your personal affairs which is what you seem to be suggesting, won't fly either. If a judge feels your LLC is not operating as a separate business entity, but rather just a smoke screen used for personal asset protection, they can find that you not be afforded ANY personal liability protection at all. Absolute LLC protection from personal lawsuits is a myth.