By Todd Northrop
This week we are seeing the largest lottery jackpots in history up for grabs to anyone spending as little as $2 for a ticket.
The $1.6 billion Mega Millions jackpot is certainly getting most of the attention, but the $620 million Powerball jackpot would be just as life-changing to the winner.
That's a total of more than $2.2 billion between the two games. It's not just life-changing money, it's multi-generational wealth.
When one or more tickets eventually hit all six numbers, that kind of money would make anyone temporarily lose their mind. Can you imagine?
If you happen to be that lucky winner holding the prized lottery ticket, here are answers to some of your first questions.
I've won. Now what?
Lottery officials recommend winners take a deep breath, put their winning ticket in a safe spot and consult with a reputable financial planner before visiting lottery headquarters to claim the prize. (Your winning ticket must always be claimed in the state in which you purchased the ticket.)
The first decision you hear people talking about is whether to take the cash option, which is currently $904.9 million for Mega Millions and $354.3 million for Powerball, or an annuity, with one initial payment and annual installments over 29 years. Nearly all winners opt for cash, but the annuity has advantages, as it reduces the tax bill a little and offers a stable flow of income that climbs by 5% annually.
But just because people talk about that being your first decision, it should not be. Your first decision should be who is on your financial team.
You will need a good lawyer, a financial planner, and an accountant. You will certainly want to add other team members down the road, such as a charitable portfolio manager, but don't feel you need to get them on board immediately.
Your team can help counsel you on which payout option is best for your situation, when and how to claim your jackpot, where to put all that money, how to manage publicity, and a thousand other questions you'll have. Your trusted team can keep you calm and knowledgeable as you navigate the new uncharted waters of your new wealth without making a wreck of things.
How long do I have to claim the jackpot?
States have different rules, so depending on where you purchased the ticket, you typically have either 180 days or a year to claim the jackpot. The one exception is New Mexico, which only provides 90 days to make the claim.
A complete list of claim periods by state can be found at USA Mega's Ways to Win Mega Millions page.
Do I get my money instantly?
No, you can't just cash one of those oversized checks shown in all the winner photos. Payment speed also varies by state, but a week or two is common. Carole Gentry, a spokeswoman for the Maryland lottery, said the requirement is seven to 10 days in that state.
Can I keep my name secret?
Lottery jackpot winners can remain anonymous in seven states: Delaware, Kansas, Maryland, North Dakota, Ohio, South Carolina, and Texas. In Arizona, people who win more than $600 can keep their name secret for 90 days after claiming prizes, but after that names are public record. In Michigan, winners can remain anonymous unless they win Mega Millions or Powerball prizes.
There are also legal structures that can be created under which to claim the jackpot, which might provide a degree of anonymity. (That's why you have a good lawyer on the team.)
Some states have press conference requirements too, so you may have to be public about your claim, depending on the policies of the state you bought the ticket in. Again, your team can help you navigate these requirements to your best possible advantage.
Most people would be nervous at the thought of being front-and-center in a press conference, but keep in mind that some lottery officials say it's actually better to do a brief press conference than not.
The reason? Because even in states that allow for anonymity (or near anonymity through a trust), open records laws in the state might allow persistent reporters to pierce your veil of privacy and gain access to public records that contain your name. And such open records access might just surface something else about you that you would rather keep quiet.
By participating in a press conference, you essentially give the press the attention they want, and they won't be as hungry to dig through records looking for information about a "mystery winner".
What about taxes?
For winners of $5,000 or more, all states automatically withhold 24% in federal taxes before you get a dime. (For non-US citizens, that number is 30%.) But state taxes vary widely.
Some big states, including California, don't withhold taxes from lottery winnings, and some like Texas don't have individual income taxes at all. For others, the state takes a bite, especially in New York, where a winner would need to pay a state tax of 8.8%. Residents of New York City would pay an additional tax of 3.9%.
To see what the federal and state tax withholdings are initially made in your state, USA Mega has a Mega Millions Jackpot Analysis that even includes a year-by-year analysis of the annuity payouts. A Powerball Jackpot Analysis is also available.
Keep in mind, all we have discussed so far is the amount of taxes initially withheld before you get your money. There's more.
Melissa Labant, a tax policy expert at the American Institute of Certified Public Accountants, said winners should realize that while taxes are initially withheld when prizes are awarded, more money will likely be due at tax time as people suddenly are in up to a 37% tax bracket.
"That catches people off guard," she said. "You have to be prepared to write another check to the IRS in April."
This can also happen on the state level. For example, even though Delaware does not initially withhold any state taxes, you will need to pay a 6.6% state tax in April, plus if you live in Wilmington you'll add another 1.25%.
What are my taxes if I don't live in the state where I bought the ticket?
This can get complicated, but here's the rule of thumb: You will generally pay a net amount of the higher tax rate between the state you live in and the state where you bought the ticket.
For the most part winners pay taxes where they bought the ticket and then can get a credit on their taxes in their home state. The final tax bill can depend on if the state where you live taxes at a higher or lower rate than where you purchased the ticket. Rules vary by state, so this is a good topic for that financial planner. (It always comes back to the team.)
What are my next steps?
After you finish hiring your team, you have claimed your jackpot, and done whatever minimal amount of publicity that is necessary, that's a good time to take a nice long vacation. Get far away to someplace where you can unwind and nobody knows you.
We all see how fast the news cycles go these days. After a few weeks the media no longer will be talking about that billion-dollar jackpot and reporters will not be interested in camping out at your home.
That's not to say that you won't have friends, neighbors, and relatives — as well as complete strangers — hounding you for money and donations, but a large chunk of the attention will be diminished while you're relaxing on the beach.
What do I do when everyone asks for money?
Remember that team you hired? Because you should — you are paying them to help.
You will get hundreds or thousands of requests for money and you will hear every sob story in the book. Some of them might be real, but most are probably the result of good acting lessons.
By filtering every request for money through your team, you can deal with all those requests without feeling that truly good causes are being missed. (That might be a good time to add a charitable portfolio manager to the team.)
So when someone asks for money, no matter how pitiful the story sounds, always give it to your team to evaluate. Don't make split-second decisions on handing out money.
Unfortunately family may be the most difficult to deal with, and that's something you might want to think about how you want to handle while you're relaxing on the beach. Just do your best to avoid adding unnecessary drama to your life.
Most importantly, just smile and remember how lucky you are to be the winner of so much wealth that it can improve the lives of your family for generations to come.
Apply to LP for Elite status on the grounds of extraordinary achievement.
"For winners of $5,000 or more, all states automatically withhold 24 percent in federal taxes before you get a dime. (For non-US citizens, that number is 30%.) But state taxes vary widely."
Is the bold statement accurate or complete, Todd? So US residents are charged 30% or by non-US citizens you mean non-citizens who live out of the country?
Can’t you can be anonymous in Texas if you win more than $1 million?
Here in California, we will wait six to eight weeks to get the check. A good time for a vacation. I am sure that a bank or credit union will loan you enough to get you through your time on vacation. Problems? Refer them to your team.
Need Security? Bodyguards? Ask your team for help.
U.S. citizens who provide a social security number will have 24% of a prize over $5,000 withheld before receiving the prize.
If you are not a U.S. citizen or do not provide a social security number when you claim, then they withhold 30% before receiving the prize.
Also, your state (and local taxes, if any, will be withheld too) before you get any money.
Plus, as the article states,
Melissa Labant, a tax policy expert at the American Institute of Certified Public Accountants, said winners should realize that while taxes are initially withheld when prizes are awarded, more money will likely be due at tax time as people suddenly are in up to a 37% tax bracket.
"That catches people off guard," she said. "You have to be prepared to write another check to the IRS in April."
I hope this clears up your confusion.
I like that California has a "lottery winners handbook" download-able from their website. Good info no matter what state you live in.
I've also always said the lottery needs to compile a book on all the lottery winners who did everything wrong and lost it all; A "here's what NOT to do" book.
Good Luck to Everyone!
.
I wonder if things like Optima Tax Relief would apply in these cases,
or is it just for people who owe the IRS a bunch of back taxes?
White Shores, aka Seychelles Baby!
The Federal tax rates in the future are unknown. They could easily exceed 37%. A lump sum is likely the better option because you can reinvest the after-tax dollars.
$2.2 Billion American dollars will revolutionize my life. I think that I will hire a CFP Certified Financial Planner first. He or She can then help me with hiring the rest of my team.
There are certain questions I have for the CFP. How are you paid? What will I get for my money?
Will you assist me in finding the other members of my team?
Can you keep secrets?
3 words....PAIN FREE RETIREMENT! Good Luck everyone!
I think it would be wise to plan a few other aspects as well. Plan ahead what you would do if you won, before you win.
Look up the people you would potentially hire. Write their contact numbers down. Chose how you will spend your money, while you are actually waiting for it to go through security, before it hits your bank account.
Will you stay in the United states in an Air-BNB far far away, with your relatives in a different location, or perhaps stay where you live and flaunt your new winnings around so all will know? (I wouldn't advise that) Decide now who you will share the wealth with. I would find a competent adviser that could help me process the windfall. People actually get paid to guide you through a situation like that. If you haven't dealt with lots of money before it would be a wise step to have people around you who could help you stay grounded.
Write out your publicity speech now or any other speeches you will be making. What will you do if you can't hold back telling someone and it doesn't go as well as you thought. Plan what you will do if you are tempted to let someone know you won before you should.
Oh there is so much that could be done now before the big reveal. Figure out what you would do if you actually won and take as much action as you can today towards it. Even if you don't win, it sure is entertaining to imagine it.
I already have my plan
All I need is the big jackpot
Never share anything about your plan!
Hit / Win First, Worry about everything else later!
A "CFP" bankrupted my mother's life insurance policy by just ignoring it ..................
He got fired and my mom has no life insurance at age 94
Be Careful
I might guess that there are ways to do background checks on CFPs.
Could your Mom have been able to cash in her policy at this time? That is a loss.
She might have been planning on leaving it to family members as an inheritance as well.
A winner of these two jackpots will be able to hire enough detectives and financial help as he or she needs.
Thanks Todd, the post really helpful.
Missing sunny california. But,love your post!
Hoping to leave for christmas holidays.night and good luck all lp members
who are playing, this week."
Thank You Cassie8620, For your good luck wishes to all LP members.
Isn't this Post by Todd excellent? It clears up my plans. What to do first.
Each person is different and their plan will reflect that.
I agree! I will plan once I have checked and recheck the ticket. I would send a copy to 1 sibling to verify that my eyes weren’t crossed.
Don’t know where I would go for relaxation!
Wasn't there an article a few days ago about being able to claim in Georgia, anonymously?
Back in 2015 under Winners on Powerball Website
There is a PDF you can view or download that shows a Anonymous winner or winners in Tennessee.
I would love to know how the person or persons was able to set this up in Tennessee. If I ever won something like this, I would like to set up a trust to remain anonymous.
Here was the winner(s) name.
Avondale Revocable Trust
Tennessee
Nov. 4, 2015 Cash $144,100,000 annuity
$89,795,622.27
billybob1185, Are you saying that John and Lisa Robinson who won one-third of the former record jackpot could have claimed anonymously? They were ill-served by their lawyer.
I know that a winner of this jackpot should interview three lawyers/attorneys, three financial planners, and three accountants. The winner will have the time and funds to do this.
The California Lottery "Winners Handbook" has some good ideas and contact information.
These are lottery dreams that we rarely have. Enjoy them!
Billy, 2 things happened there. First and foremost, they kept quiet and second, they contacted an attorney who drew up the Trust paperwork for them.
If you check the Tennessee Lottery website's FAQ, there is a subsection that is in purple that has " I WON, NOW WHAT", click on that and the 3rd question down says," Can a group of people share a prize?"...."Yes, Lottery prizes can be shared" It further states in that paragraph, " The check can be issued to an individual, corporation, organization, partnership,trust, or estate. Any non-individual claim must provide documentation of authority to the TEL before the prize is paid. The TEL will accept IRS Form 5754 if a group of individuals is claiming the prize."
http://www.tnlottery.com/faq/i-won
My suggestion is you contact a firm whose specialties are wills, trusts and estates. Perhaps near Nashville, Knoxville, or Memphis would be the best place to start. Also consider looking under Super Lawyers and type in "lotteries" when you search that site.
Music, that is correct. Why on earth they went public and did the interviews is beyond me. To each his own
They did that on the advice of their lawyer, one who had previously represented two other lottery winners. (he bills himself as "The Lottery Lawyer") I think his motive was clear.
YEEEEEEEEEEEEEEEEEEEEEEEEUP......Pay attention to me..... That is the first website of a Legal Firm, I have seen, that talks about being on national TV so much and a running blog about lottery results.
Yes, great post, nice to have all the specifics in one place. Thank you so much. Just hope I get to use that advice some day
I'd have flights booked for right after the press conference and head off for at least 2 months, to Australia. Before then, I'd have outfitted my house with monitored security because I wouldn't be surprised if we got broken into by nefarious types. Maybe I'm cynical, but I wouldn't trust people much after such a huge win. Not even family. Too many stories of family members going feral at their lottery-winning family members, even plotting to kill them.
FYI:
http://www.tnlottery.com/sites/default/files/2018-10/Policy%203.1%20%20Drawing-Style%20Game%20Rules%2010-31-17.pdf
*Rules for MM start at page #52-77
*Rules for PB start at page #13-32
I don't know about other states, but in Texas you have to choose Cash or Annuity when you buy the ticket.
I don't think you can change your mind if you win the jackpot.
The burning "first question" that never seems to be answered satisfactorily is: Should you really sign the ticket - if you want to remain anonymous? And that is a question that ideally would be answered before you find advisors.
Of course, lottery officials tell you to do so, because they don't want people to be anonymous. But, assume you want to remain anonymous, and you are going to claim the prize in a trust (many do that in Texas), do you sign your name on the ticket - that may (???) be discoverable in an Open Records request - or do you write in the name of a trust, or something else?
Anyone know anything about this extremely important first question?
Attorney advises not to sign ticket
Do NOT sign it, photocopy then put in safe deposit box. Contact attorney.
Excellent! Thanks so much. That's what I was thinking, but always hear to the contrary.
Remember that each State is different and has different rules.
There was a story here around 2010 of heirs receiving money from a Saginaw Valley Michigan Lumber Barron.
He left his money with a fudiciary with instructions to pay it to descendants 150 years after his death (or something like that)
Problem solved! If they live to 180 without getting caught then they get the money!
If I remember correctly some of the heirs "only" got $2,000,000 or so dollars each when it was disbursed and nobody who got the inheritance ever knew the guy.
Mega Millions Cash Value up to $913,700,000.00 from $904,900,000.00.
We may have a $1,000,000,000.00 cash pot by today's drawing.
That would make the annuity around $1,770,000,000.00.
Jade, not sure where you saw that increase. MM home page still shows $904 Million Cash... Also went to the TX lottery site and that says $904.9 Million Cash.
http://www.megamillions.com/
https://www.txlottery.org/export/sites/lottery/index.html
We have our ways.
If MM rolls (26% chance), the Jackpot for Friday, October 26 will be:
$2.0 BILLION!
That is what I and alot of others thought it would be at now.
The cash amount got bigger!
I am going to win the lottery!!!
Don't take offense Mike, but that is not the attorney they hired. They went with Joe Townsend, an idiot attorney from Memphis. The lottery lawyer you pointed out came out strongly against Joe's motives, even going so far as to say he endangered the lives of the Robinson family.
This is my own opinion , I am No Tax expert , etcccc .
Learn from other winners ......remember the lady recently sued because she wanted to
stay anonymous , research that story . If you sign it , more likely you wouldn't be Anonymous.
There's many question that needs to be answered . There's one Winner , I know of , I'll have
to go searching for , maybe he could give me the answer or I could go to the same
Wealth Management , he went too . I'm 100% ready to win the Mega Millions !!!
A plan is in place !!!
Where did the $913 million amount come from?
Thanks for that information !!!
They bumped up the cash value earlier today.
Yes I read that article .
In my opinion , All States should be Anonymous .
I'm aware 4 or 5 states or so , are anonymous !!
I thought of the same thing , long time ago ,
interview as many as you can , lawyers ,
financial planners and accountants.
Every one should read The Millionaire Next Door.
One example;
What percentage of millionaires drive brand new cars.
23.5%
Move away to new rental place. 1hour drive from current location. Different county. Rent apartment. Wait for 1 month to get utility bill. Go to dmv and change address on licence. Use this to claim lottery. At least people will not camp where u actually live.
Thanks for the video .....
That's one spoke person said today , be around people who has your back ,
no matter what . Who you can trust and feel comfortable with .
There's many positive stories , with winners !!!
~~~~~~~~~~~~~~~~~~~~
Thanks for the update NG
Some lawyers are actually suggesting doing the full "dog and pony" shows saying it's better to get all publicity out of the way and how many people besides Music even know their names and where they live?
I just bought an extra Mega Millions Ticket and then helped a young woman that attempting to purchase $20 worth of MM tickets at the touch screen lottery machine. She was very confused and had already put in her money. In the end she got her tickets and I almost forgot to purchase my lunch meat at the deli LOL!
Todd listed it before the MM web page updated LOL!
My feeling is that it would obviously be best remain anonymous if at all possible, and with a smaller jackpot that might be possible, but in the case of either of these jackpots there would simply be no hiding it. lol... Best one could hope for is that people knew (suspect) that you won a lottery, but they didn't know the magnitude of your new found wealth. Unless, that is, you were ready and able to abandon your former life completely, but that would be impossible for most of us.
Also, I can see the validity of getting the "dog and pony show" out of the way in the case of a "normal" jackpot, at least then you can reasonably expect the media to leave you alone, but if you won tonight's behemoth of a jackpot there would be no end to the media interest.
https://www.msn.com/en-us/news/us/here’s-what-to-do-if-you-win-the-dollar16-billion-mega-millions-jackpot/ar-BBOMWuf?ocid=spartandhp
#9 Hoe Lee Crap........
Haha! The very last thing I'd want to do is tell a complete stranger my personal "feelings", not to mention that that stranger has the power to have me sent away to the funny farm if I say the wrong combination of words! At any rate, all I'd be able to say for the 1st couple months after winning the jackpot would be "WooHoo! WooHoo! WooHoo!" and dance around like your "Barbara Streisand" video
No joke. Susan Bradley has one on staff. https://www.suddenmoney.com/about-smi-faculty
the consensus in our group is that it doesn't matter who hits the lottery (its not a group buy), we will pay someone X amount to claim the ticket, after having a lawyer(s) draft documentation. The person who claims the ticket can do the the public crap if need be (in Michigan), but they would simply say, "I didn't really win, I'm just claiming the ticket."
One thing I know for sure is there is a way to get around taxes, legally, you just need to know the right professionals. You will pay something, but you can decrease that amount for you and all of the people you wish to give money to if you can hire the right folks. I pan on finding those folks, even if I have to wait months to claim my ticket. Tell Donald Trump's tax guys to contact me lol.
I'd like to do random acts of kindness. Maybe show up to a court in a city (the largest city) and pay everyone's tickets that comes in that day. Don't even tell the customers what happened, just tell them that they don't anything and provide them with the documentation that shows their $0 balance. My team and I will be in the back paying the tickets as the they come. I'd like to donate to fire departments, after school programs, etc... Just small donations, but hopefully things that make a difference. Maybe pay crews to fix up parks, pay college tuition for students who received higher than a 3.0 gpa the last few semesters, etc...
There are ways to get around paying some of the taxes, for example giving it all to charity, or putting all or most of it into a charitable trust. You made a joke about The Donald's tax accountant, but he's a real estate guy, and real estate is extremely tax friendly. Most (or Much) of the rental income is tax-free because of depreciation. There are also a multitude of clever ways to structure leverage. For example, you can buy an apartment building, improve it (raise the rents), then turn around and refinance the entire deal based on the new value. After you pay off the original leverage (which would happen upon closing the new loan) and paying the early payoff penalty, the remainder of the cash is yours to keep, tax free (a non-taxable event.) You could also sell the apartment building and roll all of your profit into a 1039 exchange, and as long as you use that profit to buy a bigger better apartment deal, the tax is deferred indefinitely (until you finally sell out of your last deal, or die. Then, I suppose, your estate would owe the deferred taxes.) So, Trump does pay every cent of his taxes, he's just in an extremely tax friendly business.
AMEN ........that was a good video
"we will pay someone X amount to claim the ticket"
What does that mean? You'll pay them to show up on your behalf and tell everyone your name, because maybe that will keep the lottery from posting your picture? Or do you plan to give a gift of over $900 million in the form of a winning ticket and expect that person to then give you a gift f over $900 million in cash?
Either way, it's not going to work the way I think you want it to.
I worked for a family who would PAY CASH for run down, poorly managed apartment buildings so they could get great deals, we would rehab, reposition the properties and raise the rents. They would then refi and get all of their money back PLUS SOME, rinse and repeat. Total CASH COW!!! MOOOOOOOOOOO!!!!
Absolutely! It is probably the best way to make a real fortune in a short period of time. Plus, while you're waiting for the reno to be completed, you're getting rent checks on the other units!
Speaking of apartments.....look where I would invest the BULK of my winnings if I were so fortunate to win! This is owning everything outright, no financing. The numbers would be more staggering if you were leveraged with debt.
dpoly1,
If the lady that you helped wins I hop it doesn't prove the old adage about 'no good deed goes unpunished'
lowellm,
Don't hire 'tax expert' Irwin Schiff
idontplay313
That's called 'sending in a beard'
I hope whoever you designate doesn't already have a plane ticket for Geneva.
Yes, we would immediately RAISE rents even on the non-upgraded units and quickly evict non-payers and trouble makers. We wanted turn over so we could reposition with higher paying tenants. These were B, C and D class units catering to the working class.
"but if you won tonight's behemoth of a jackpot there would be no end to the media interest."
Lots of people are suggesting "wait to validate the ticket", "get you ducks in a row", "hire a financial planner", "take the payments" and several other things. The problem is, winning a jackpot is not "one size fits all" so it's really about personal preferences. IMO, the longer the winner wait, the more media scrutiny of the winner. Which may include paying a clerk to view the security tapes.
It might take six week after validating the ticket to get all the money and I've always wondered how someone without their ducks lined up now, how could they line them up without at least some of the jackpot money. Most people have no clue how to invest their money and is it really necessary to talk to a planner before validating the ticket?
Today the real "dog and pony" show were the people buying tickets that never played before. Saw a guy calling out the numbers he wanted to play. When he asked for "82", the clerk told him to fill out a play slip, he looked like a deer in the headlights. There was on the counter "Cash only for lottery tickets" and when I said to the clerk, "I thought everyone knew that", she said most of the players never played before.
Based on what I saw today, one winner, the first ticket they ever bought, and they will hold a world class dog and pony show.
Good luck!
DANG BuyLow! You really think you are going to win tonight huh? WOW!
That is exactly the right way to do it, and the ideal "class" of folks to rent to. Also, with this economy and jobs figures the wages will start to go up. When wages go up, so do rents.
Ok BUYLOW.. what is #5 ??..nooo not the dollar amount
I always run a spreadsheet on current jackpots. Just have to change a few numbers and the rest auto calculates. I know myself, so I know I must have a plan.
Don't want to be Jack Whittaker or David Lee Edwards.
House/Cars/Boat/My Brother/Others
That is pretty cool BuyLow! I hope your dream comes true! I just wish I was Paul Allen's brother! (The $20 billionaire that recently died)
Welllll now.... $20 Million ???... out of almost 600 Million...Family and friends is right up there I see
How we breaking that down ?? $10 Million Dollar House, $8 Million dollar boat........
I wouldn't need a team. A lawyer, yes, maybe an accountant, but some large team isn't necessary. I'm not stupid.
If and that's a big IF I win at all. I will give money away that's a fact. I'm not that materialistic. But I will move far away from where I live where not a soul knows me. I will give and live a good life.
Best of luck to you, Stack47! Yesterday I went to buy my tickets (I went to a town about 40 minutes away, just because I had to go to Home Depot anyway, I figured it would draw some of the heat away if I won. lol) I walked up to the counter and told the girl "I'm going to test your E.S.P. abilities... What am I here to purchase?" She just looked at me and asked how many I wanted. Three road construction dudes were behind me, and I could hear them saying how they'd never bought a lottery ticket before, they just couldn't see the point in it. I could tell that they were building up to giving me crap for wasting $21, and they would've if they'd known me, but I guess they decided that discretion is the better part of valor, and besides, I could've been the wrong kind of psycho as far as they knew... lol...
I agree about getting your ducks in a row. I'm fortunate in that my bank is privately owned, and I'm friends with the two loan officers there. I know them to be discrete, and they'd loan me a couple hundred grand with a handshake and a signature (that goes double if I showed them a copy of my winning ticket! lol) So I'd be able to get set up somewhere warm and distant before I ever had to worry about turning in my ticket or cashing that big fat check!
Sounds stingy lol.......Big giving upfront doesn't usually pan out well from what I can tell......and, My bro is the only one left of my family. I would set him up well so he didn't have to work but a BIG windfall would not be good for him, so I would buy him a bunch of houses put in a trust for rental income and give him like $250,000 cash up front. I would give the maximum per year to all my friends and their family members, a family of four that would be like $56,000.00 per year. If I can replace one income and the mom or dad can stay home with the kids that would make me happy. How will you dole out your millions?
Stingy....lolololol... i was thinking along the lines of "a part of your anatomy is so tight that if you ever broke wind,the only thing that would hear you is a dog",,But I digress after your full explanation.......... Mine is a bit more family/friends oriented, staying away from real estate adventures, other than a home and land.
Family/friends- $287 M, the Mrs( aka The War Dept) and me about $120M for the nest egg, house(s), vehicles, toys. $75M to various charities. $50M to Wounded Warriors and the remainder to start our own charity. *Subject to change
Good plan, a bit to generous for my tight body parts though!
Allow me to state the obvious, but it's mind-blowing that the PB is $620M, an astounding jackpot... Meanwhile, the MM is (almost) A BILLION DOLLARS richer than that! I'm so proud of my underdog MM! lol
Yeah I agree I want to share the pot of gold with many family and a few friends. Will I invest sure but I don't need to take 600 million post tax and turn it into 5 billion before I turn 60.
I was all for dividing it up between my loved ones, but since I found out I'd have to pay an additional 40% gift tax above $11M, then screw 'em, they can divide the $11M! I don't like them THAT much! LOL
LOL just get married to random <insert gender> so they can gift people 11 million without knowing it.
(that was a joke)
Well, maybe with an iron-clad prenuptual agreement! lol.. Not a bad plan!
I've...A....Plan !!!
I'm 100% Ready To Win The Mega Millions !
The Mrs has a pretty good sized family, some close to retirement, so we want to do this right for them(roughly $8-10M ea). My side is alot less but still make sure everyone is treated fairly/equally(same amount each). We have about 8 close friends we want to set up for early retirement($5M ea.)....Various chosen charities ... Wounded Warriors is important to both of us. I like the idea of those "trac vehicles" they make for folks to get around on. Last I knew they were about $17K apiece..We want to start a charity for LEO's injured or killed in the line of duty... Just temporary thoughts for now.
Shhh! Don't tell them that! ;)
How will you evade gift taxes with this level of giving?
Now, now... Let's not use the word "evade" and "taxes" in the same sentence... Oh wait, I just did it again!
No plan, just waiting for the stars and numbers to line up! Everyone has provided so much advice. This has been an interesting topic with the Mega Millions
Do share!
there is 2 ways of conducting that,if my understanding is correct.... put them in the trust up front for the day you collect... yeah yeah, I know, the IRS wants you to have a pre agreement on the lottery before you win..... With most of these folks, we have already had that conversation and percentage agreement. With the few I don't, we are going to offer them the equivalent of an after gift tax settlement and then pay the gift tax on that figure.Those are the lower $$... Unless that is considered too gray of an area.. then we will do it the other way
https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes#1
Man, I'll tell ya... The thought of paying taxes to give away money that I already paid taxes on makes me quiver, but not in any good way! lol
I believe the 2018 gift tax rate is the same as the top income at 37%, correct ?
lol..... Just remember, if you include them in your trust at the beginning, that 24% that is initially taken out is also part of their share, the rest they will be responsible for
I'm not sure, the whole "gift tax thing" has always befuddled me. I don't understand the logic or fairness behind it, except that the Feds want their "estate tax" one way or another. I just don't understand why it is that if I earn money, pay my taxes on that money, then I wish to give it away: why am I being taxed again on it, why doesn't the recipient pay the tax? Or, worse, do I pay the gift tax and THEN the recipient has to pay income tax on it? My head would explode if that is the case.
That my friend, is exactly why we hire the professionals
Yep... I don't even want to know the details. I just hate injustice, I guess. They need to simplify the tax laws. It surely doesn't need to be so complicated that a person needs a professional to navigate the murk.
A guy in front of me was buying 50 QPs $100 worth of.....................PB tickets. I chuckled, but the thing I noticed was how slow the terminal was. Maybe the terminals are programmed to work together. What else could cause one terminal to be so slowl?
I decided to play some self picks because if most of the ticket sales are QPs, not one QP has won a jackpot in the last 25 drawings. Self picks are the best way to go.
I don't know what would slow it down like that, could be that the sales traffic slowed it down, I guess. I always figured the machine picked the numbers and sent them in to the mother ship after the fact, but it could be that the mother ship has to approve or confirm the set of numbers before the ticket can be printed.
Anymore I always just play QPs. Also, the numbers drawn lately have been really ugly. I cannot imagine anyone choosing a set of numbers that random, lol. I'm not judging anyone for picking their own, but it seems kinda fruitless to me because any number I'd choose would be far less "random" than the ping pong ball machine selects.
On several of mine I picked two of the 5 and let the machine QP the rest and the mega ball.
If a player wanted to throw enough money at it, he/she/it could just select all of the mega balls and let the machine QP the rest. At least then he/she/it would be guaranteed to win a prize! ;)
I'm noticing jackpot fatigue here. Come on folks!!!! Keep it rolling!!!!
You would spend $50 and guaranteed to win $4 (minimum).
I can't help but wonder what would happen if she rolls tonight. Would everyone lose their minds, or would it even sell as many tickets as this drawing? A $600M bump is not minor league, but I honestly thought folks would mortgage their children to catch this jackpot! I figured it would hit $2B by now.
Yes! SCORE! lol
My office did a little pool (under $100) when it hit a billion, but we didn't do it again for this drawing (we did roll the $4 we won into another couple of tickets, but that's all). I suspect a lot of groups did the same.
Yeah, that is definitely frustrating when you buy all of those sets of numbers and they don't come close... It reminds you of how long those odds are. I think a lot of folks came to the same conclusion after the last drawing: It's just too hard to win, so why bother? That's the sentiment I've been hearing for the past couple of days, anyway.
Sorry, no lottery winner at this location
I had 2 - $10 tix and won $6
1+MB $4
MB $2
That either 3 more tix if it rolls or 3 more PB tix
One winner in South Carolina.
My opinion - if I win Powerball jackpot I'm going to use the common sense; why would I spend money on some CPA's and whatnot - that money is MINE and MINE only so I'll spend it the way I want and just like someone already said - my plan would be only mine and nobody would know what is it
"why would I spend money on some CPA's and whatnot"
It may not be a reason that works for you, but not being a moron is one of the possible reasons.
Raki...common sense is a wonderful tool to utilize, IF you have been exposed to the situation(s). What is common to someone with extreme wealth would not be common to the average person. A CPA is the professional that can give/get you answers about various accounting rules, regulations & concerns. Spending a few dollars, out of hundreds of millions, for sound advice & guidance is reasonable.
Oh I hear ya on the "money and plan is mine" thing. Unless you know everything about legalities, taxes, investments and prevention of massive loss, a consultation with a professional to ensure your plan is 100% is a great thing. Perhaps the CPA or other professionals can give you options you hadn't thought of that may resonate with your plan... A few bucks spent on an education is always a good thing. Knowledge is power
BUT, in the end, only you know if you have the knowledge and skills to handle that kind of wealth. Best of luck should you win.
I haven't experienced such a huge win as of yet; few small ones here and there and yes, extreme wealth can do a number on a person but then again it doesn't have to; I think that I'm more than able to remain one cool dude regardless. As far as the whole CPA's etc I am someone who knows a lot about the whole financial planning(career choice) so that would save me some serious time and money right there; for everything else if I'm not 100% sure or can't find it myself I know where to find it. And in the end - I totally agree with you - knowledge is and always will be a power.
Too bad I'll never win LOL
I am an attorney but still plan on consulting an attorney who handles trusts 24/7 and a financial planner and a cpa. A sign of intelligence is that you know when to seek expert advice since no one person could be up on every nuance and new rule out there. I want to uncover every option so having common sense and intellectual curiosity will always help you make the right decision.
I have bee reading it a lot here on Lottery Post, the first thing you don't do is not sign that winning Power Ball or Mega Millions ticket is because your going to put your winnings into a trust so no one will know who won all of that jackpot! I know what you are going to do first is call your best friend or at least you think is your best friend! and say to him or her, I won the lottery jackpot! and your friend is going to say, don't go anywhere, I am coming over to your place, and the next thing, your friend is at your home and wants to see that winning ticket and immediately looks at it and glances on the back of your winning ticket and sees you didn't put your signature on that ticket! Watch-out! So, my advice is put your signature on the back of your ticket right after you purchase it,just to be safe!, that's what I do!
"I have bee reading it a lot here on Lottery Post"
Have you read where a LP member actually won a multi-million jackpot?
You should not sign the ticket with your name if you can claim in your state with a trust. Search the New Hampshire news story on this issue. Make a copy of both sides of the ticket and sign with the name of your trust...it can be anything.
I could have sworn I read somewheres that copying a ticket ruined its barcode or something like that
Hello hello, I'm new here!
One quick question!
...approaching the 6th week of waiting, is there any way we could check a winning claim status??
Yeah, but at least it won't steal your soul, like having your picture taken does.
That's absurd.
kd.... I would check the lottery rules in CA as far as payouts are concerned. If you won $$ from PB or MM it may take longer than a state sponsored game like your Superlotto,Fantasy 5 or a scratch-off ticket.
https://static.www.calottery.com/~/media/Publications/Popular_Downloads/winners-handbook-October%202018-%20English.pdf
I did see it could take "up to 6 weeks" on page 6 in the FAQ.... My suggestion is to wait until week(7) and then head down to your nearest office to inquire......................Good luck
* Take a picture with your phone,do a selfie with the ticket, heck take a video, then go to a CVS and use their equipment to print a nice color photo. Then you have zero concerns about a copy
Don't believe everything you read.
I've taken hundreds of pix of work pool tix for members and the barcodes were fine.
Hi CDanaT!!! Thanks for the reply.
Yep, will just wait for it. Talked to our investigator and he said check will be released today, but I don't know what that means. Lol! Will the 6weeks start from thw claim date or on the date the check is being released. :D
Have a great weekend! :))
Right- l can see you using common sense by doing your own taxes after a Powerball jackpot win. You did say that you were not a tax attorney or a Certified Public Accountant...correct?
Ticket sold on South Carolina 8ticketd bought in California matched five of the 6 win the jackpot and tickets four all around the world the I WIN THE $1.6billikn mega jackpot ?
What gibberish is this? Come again