Texas Lottery Winner's Identity Kept Secret
The state of Texas is hiding a lottery winner's identity, refusing to release the name of the winner of a $64 million drawing Feb. 8.
A press release published by the Texas Lottery Commission calls the winner "The AB Revocable Living Trust" as if that were the name of a corporate entity, but an A-B revocable living trust is a form of estate that minimizes estate taxes by splitting marital assets into separate shares for each partner.
I've never heard of a state lottery that would keep a winner's identity private. Releasing the names is the only way the public can be assured that the state isn't keeping the money, as I was told years ago by a Texas Lottery Commission spokesperson when I wrote a question-and-answer column for the Fort Worth Star-Telegram.
Comments
They are not keeping the winner's ID private. The winner is the AB Revocable Living Trust. Texas law allows one and only entity to claim a winning lottery ticket, but allows an individual, trust, partnership or corporation to claim the ticket.
So if multiple people win, as probably happened here, they pretty much *have* to use a trust or similar entity to avoid being screwed.
Probably if you do win the lottery regardless of which state it is, even if your an individual winner, it'd be best to set up a trust and have the trust claim the prize.
First, it turns out that at least one state allows individual lottery winners to remain anonymous -- Delaware. Most states, though, classify the name (but usually not much more) of the lottery winner as public information; all states seem to allow trusts and other entities to claim lottery winnings.
Someone (or some group of people) won $265 million in the Mega Millions lottery in Ohio recently and used a trust to claim the prize without revealing the identities of anyone involved.
BTW, Rogers, isn't this a silly argument,
"Releasing the names is the only way the public can be assured that the state isn't keeping the money, as I was told years ago by a Texas Lottery Commission spokesperson when I wrote a question-and-answer column for the Fort Worth Star-Telegram."
So I'm paranoid enough to think that the lottery is a scam. Nobody's really getting that money. The government's just keeping it.
Until I see a list that says:
John Doe won the lottery this week.
Jane Doe won it last week.
Riiight. Because the government wiley enough to set up a fake lottery scam wouldn't be able to come up with a couple of fake names? It seems to me you'd have to be pretty naive to be reassured simply by a list of names.
Hey, I gave a million dollars away last week. Don't believe me? Well, the names of the people I gave it to were John Smith and Bill Johnson. Convinced?
Which is not to say that the lottery is a scam, but I'm wondering why seeing a name would add any more legitimacy. Seeing a name, a picture, an address, a phone number -- that I or journalists could use to verify the winner, but just having a name seems close to no verification at all.
Yeah, keeping lottery winners names secret is definately legal in Ohio. Former resident and state civil service worker, so I can attest to it. ;)
In Ohio, you can set up a trust, turn the winning ticket over to a lawyer, and nobody will ever know who won that particular jackpot. It hasn't happened too often. I remember a win about 6 years ago (right before I moved here IIRC) that did that.
If I won it, that's certainly the way I'd do it too. The cousins (some that you know, others you never knew you had), the con artists, the charities...
Trust information is public information and can be obtained from the Secretary of State. One can find out who the Trustees are & an address as well as managing partners & president for LLC's. The Texas Lottery has to provide claim forms and copies of papers submitted by the winners if requested through Open Records. You may not know who the winner actually is but you will be able to contact someone who does know.
I really wonder about why people would go through so much work to find out who won. It's really no one's business but the winner. At least this is my opinion.
If I ever won money at the lottery (don't play so prob. never will) I would choose to be anonymous; it's just safer and smarter that way.
-Regards
reading your article i most certainly agree that winners should have the option to dacide if they want to remain anonymous or not. when i win i would definitely have someone else to claim my winnings. i live in harlem and i would like to continue living somewhere in harlem. but
unfortunately i would be concerned with jealous people, kidnappers, and just anyone that may try to scheme or set me up for robbery.
I know if I won, I wouldn't want my name all over the place for some crazy people, charities, churches, investment firms, etc., to hound me for money or want to sell me something.
People need to have a certain amount of trust in the Lottery Commission that they are really paying the winnings to individuals, trusts, etc. I guarantee that he Internal Revenue will make sure that they are getting their cut from the winners.
I think anyone with an education knows that trusts, corporations, etc., are public information. Sometimes the owners and trustees are hidden under a maze of corporations, etc. to make it difficult for people to find out who the real owner is. As you pointed out the trustee doesn't have to tell you squat! So you wind up knowing nothing. I think the question is why does anyone give a crap who won unless they plan on harassing them.
Who wouldn't want their identity anon if they won the lottery? Look up the stats on prior lottery winners, and you'll see how many of them were pressured, scammed and stolen from, by strangers and family. When your name is announced as a winner, that allows every person with access to the television, newspaper and internet to know who you are and how much money you've just won. That's not only disconcerting, it's scary. The first thing I'd do on winning would be to hire an accountant; the second, a trust. Anything else seems unwise and unsafe.
Lottery winners should be able to claim the prize without giving out all that personal information. From what I've read most folks who win the lotto go broke because they can't say no to people who have found out they have won.
You can check those facts actually. Not only do they have old their extended families and old friends and accquantences coming at them but also all those pesky charities.
Most need to live off this money the rest of their lives because a lotto win changes everyone around you including employers and co workers... so no keeping your job is not an option.
If you win keep it as silent as possible, don't promise a dime to anyone. Invest it after a small spending slurgh to get it out of your system ala Brewster's Millions. If old friend's and family come around that were not there before you won tell them to take a walk. If charities contact you tell them where to stick it. Real Charities don't spend all that money seeking out donations..... that is a fact do the research on it. Ones the seek out donations are scams no matter how well known they are. Most charities only 2% of money collected goes to the thing they say it is going to... and Charities like PETA and HSUS none of it does it all goes back into raising more money. Do the research on that one if you don't believe me it just might surprize and offended you. HSUS took money to rescue dogs during Katerina but did not rescue one. Thus taking money away from legitimate rescues like the SPCA. Look it up.
If you win never pledge to a charity. One Lotto winner did that and could not fullfill the promise and then was sued by the charity imagine the nerve of that sick organization doing that.
Then there are all those idiots who think they can get 50k from you to pay off their credit card bills they ran up or buy their kid a car... so yeah really lotto winners should be given the option not to have their name and location pasted all over the media. Or they should make harassment of lotto winners illegal.
Seriously look up the mishaps of lotto winners and see the facts that so many have become bankrupt simply cos they can't say NO to all the mooches with their hands out.
If I had won the lottery I would not want my name to be announced and I have good reasons.
My folks sit around and dreams winning the lottery and how they would share it with everyone in their family and those on the family tree. I already know that is a bunch of bull.
So many times we sat in this circle and talk about the lottery and so many times I have had folks try to coax the next relative into saying that if they won the lottery that they would share it with them. Besides you didn't work for it you should be grand to share all of it.
The only problem is sharing isn't enough? Let's say you did win 50 million and you gave a few of your folks $100,000 a piece lets say in the whole group there is about 8 people. That isn't the way they want to see the money come to them. That want Equal share or more and god forbid if you know how to invest your money and they don't. They will still be holding their hand out for more besides it is just lottery money you did not earn it.
I have had my aunts, uncles, and cousins come at me telling me how much they would include me in their lottery winning and quite frankly I do not believe them. I already know that these people are pretty much back stabbers. I am real sure with 3 kids of their own and 8 grand children that they would be so graciously adding people outside their family unit sharing their lotto winnings. They have came around me so many times on how much they would share with me I just smile and try to brush the subject off. I know what they want, they want me to say awwwww, I would share with you too if I won.
I am not promising ANYTHING!!!!!
I already have $70,000 saved into a CD and my folks are already buzzing around wondering what I am planning to do with it. I have a few folks hinting around that they should be beneficiary of my CD account. OMG How gutsy!
Do you really think I will not choose to hide my name if I won the lottery? You bet a bottom dollar I will find a way to hide my name. At least long enough to move where I am living at because I already know the set of folks that is going to be on my door step with their hands out for an EQUAL SHARE + More!
Lotto winners have rights to keep their name private. I do not blame them. I am not even a lotto winner and I already know which set of folks thinks I owe them my blood regardless if they owe anything or not. They would let me know that since I am single and they have families to take care of that more of the money should go to them.
Yea right!
Nice family Terrah, I would also like to remain anonymous. I would also like to help a few, I say a very few friends and family. Charities are a joke not a one would get one red sent from me. Out side of the previous statement, if they want money, go to the bank and savings and loan branch I would open.
When I win (hee hee) and I plan on winning. I would like to keep my name anonamous, because I want the money for financial security. I will not change my living status. I don't think everyone would understand this, especially my 5 grown children. They would all have there hands out expecting their SHARE. I think they should learn lifes lessons just like I did. They need to learn responsibility and appreciation for what they have earned.
I got the number correct in the Lottery one time in 2005.
UNFORTUNATELY I decided against the numbers I had already placed on the playslip.
Why?
See I had a ridiculious hunch! And instead of going into all the details of what my ridiculious hunch was, that ridiculious hunch was correct but I doubted at the last second and went with other numbers.
My hunch was sort of crazy and the odds of it occuring were somewhat possible, but I felt it was too crazy and too ridiculious to occur.
My message to you as someone who got all 6 numbers correct but didnt win a dime is,
IF you ever have a ridiculous hunch go with it!
NO matter how ridiculious it is! No matter how much you think it wont happen! Do it anyhow!
If you dont have enough money to play your ridiculious hunch, ask a nieghbor, a friend, a co worker, anyone, steal it if you have to!
But just dont sit there when you KNOW that you KNOW that you KNOW your hunch is probably right and you know you are going to win the lottery! It's going to happen and you are going to win the lottery tonight! Get the money dont doubt!
Your numbers are coming up!
If you KNOW it, and the odds of it occuring are probably next to nothing but there is a good reason for it to occur ITS gonna happen!
Trust me! If you know it! It might be crazy but its gonna happen!
PLAY THOSE CRAZY NUMBERS!
Definition of a real hunch is,
You dont know how you know it but its like you just do! And there is a little bit of some excitment like you've just discovered some secret no one else knows! Or see's
And remember what most people play isn't going to be the jackpot numbers!
Hey Larson, Dude I hope that you were just goofing around with that last post. If not and you were serious, my friend you need help. Come on guy, get frickin real! Steal the money to follow up on a hunch. That's crazy! I love to gamble and play the lottery darn near every pay day, but even a child has enough sense to know if you don't have the money, you just don't play. I feel bad for you that you didn't win. But it sounds like it was just not meant to be. As I stated earlier if it's that serious to you, you may want to consider quitting. I know what I'm talking about because my dad is a degenerate gambler. And because that, is why he's only seen my oldest child once once and has not yet seen my youngest. I don't mean to preach, but think about it man.
Best of Luck, Will B.Rich
In response to Mr. Cadenhead remarks about lottery winners name being matter of public record, most financial advisory professionals (at least the ones that I feel know what the heck talking about) almost always recommend keeping your identity secret if win the lottery. Now granted the "gurus" you see on TV. Like the lady on CNBC (her name escapes me right now) generally won't even broach the subject. Usually because their shilling for some type of fund or stock. It's really only makes sense when you think about it. I strongly believe that the reason most winners don't do so, is because they probably don't know how to go about setting up a trust or even how to maintain their animinoty.
Some states will allow an entity (trust, corporation, etc.) to claim the prize, and some states require that an individual claim it. If you can claim it anonymously, that's the way to go...as others have said, if your name gets out you'll have a bunch of new best friends.
If you win, best thing to do is find the best lawyer, accountant and financial planner you can. Listen to what they have to say about your situation. If you don't understand what they are saying, ask them to explain. Invest for growth and income and live within that income, just like you did when you were working, and make sure any charitable gifts come from that monthly budget.
One other thing - corporations are public record, trusts are not. If you set up a trust, no one has access to it except you and your attorney - that's why they are a great financial planning tool that can be used to bypass probate when someone dies. Their assets and wishes are completely private
I like the last information given on what to do when you win the lottery.
I for one would like to know more. Why use an FEIN number when collecting the winnings?
I would do anything to keep my ID anon. if i win the lotto.
It's a smart thing to do.
I would only want to keep my name anon. for the first month or so. If I won 50mil cash after taxes, I'd give away about 10mil to my closest friends and closest family. I'd have everyone I just gave money to, give me a name of one charity and donate 100k to each charity they name. Give a 100k to a few churches also, since there are a few different ones that my family attends. I'd then buy a house in either Hollywood or Vegas and have my friends move in with me.
Once I've setup investments for my friends and family, then I wouldn't mind my name being public.
I would try to work out something with the lottery commission on keeping my name private until I have everything in place, then once everything I had planned comes into action, my name being public doesn't matter anymore since everything I had hoped to do was accomplished.
I realize that if my name was made public, it may or may not detract me from the goal I would try to achieve, but nonetheless, if you can't deal with the pressure then that's your own fault.
If you create a plan before you even try and claim the prize, then all you need to do is stick to the plan and avoid any and all outsiders who may try and sway you from what you want to do.
Write it out with an accountant, put it on paper and as each person you have on the list is taken care of, move onto the next person and so forth. You've never hung up on a tele-marketer?? What would be so hard about hanging up on someone who is from a charity you never heard of and/or never planned to give money to??
All I know is, if I was lucky enough to come across that kind of money, then everyone who has been supportive of me my whole life and has been there for me should be just as lucky as I was.
Keeping my name anon. should not deviate me or anyone else from that, but I'd rather not be hasseled in the beginning as I'm trying to setup everything, it'll just slow down the process. But if the lottery commission can't allow my name to be private, then I'll have to deal with the added phone calls and extra pressures, but again, if I stick to my plan, then the extra pop-ups are nothing but things that slow down the giving process.
My parents won the lotto in 2003 they were in a group of 6 that won and the same thing happened they made a trust 1) to be anonymous and 2) so each person pays the right amount in taxes
Now, I sat here and read every comments all the way down to mine. Most posters here got it right: Remain Anonmyous. Get yourself a trust and claim your winnings through that. Any jackpot winnings is a life-changing event. Great wealth comes with great responsibility.
It make absolutely no sense to go public. You'll be seting yourself up for an unforseen disaster. Indeed, it can be hauntly scary if everyone knows you won. Sensibility will tell you to keep your mouth shut and be humble.
Meanwhile, you should already have a financial team assembled BEFORE YOU CASH IN YOUR TICKET. Too many winners have gone broke in a very short time. That is embarassing and perhaps the worst feeling beside death, itself.
With a financial plan----a team of qualified CPA/Financial advisors, can set the right investment for you to nurture and grow your winnings into an even bigger financial prosperity. Winning the lottery is simply a BOOST. Investing the money is the real deal. And time-on-hand to pursue your dreams, is the way to go. Have some responsibility and live like a winner, folks.
1. The $64 million dollar jackpot occurred after approximately 30 rollovers in February 2006.
2. The retailer (and receipient of $500,000 from the TLC) who sold the winning ticket in the Heights area of Houston reported his lotto machines were down most of the day.
3. Area news reporters who attempted to contact the store owner the following day were told the store had closed indefinitely.
4. The winner of the $64 million failed to come forward for over 90 days.
5. The Texas Lottery received an open records request regarding the status of the $64 million dollar winner from an attorney in May 2006.
6. The following day an announcement was made by the Texas Lottery that the AB Revocable Trust won the jackpot. No other disclosure information was provided.
7. The attorney representing the AB Revocable Trust was allegedly associated professionally with former attorney and current executive director of the lottery while employed in Houston.
8. The attorney general denied a request for information release of the trust ownership records citing privacy issues.
9. This was the first time in Texas Lottery history that a "blind trust" accepted a jackpot award.
10. State law does not prohibit family members of Texas Lottery employees from winning jackpots or other lottery prizes as long as the family member does not reside with the TX Lottery employee.
11. Other than the 2 lottery commissioners and a reveiw by a public accounting firm there is little to no governmental or private oversight of the Texas Lottery.
12. The 2007 $70+million dollar jackpot winner was claimed in the form of limited partnership managed by a limited liability company.
13. The names of the two most current jackpot winners are still not being reported by the TX Lottery.
14. Most states require minimal disclosure including the winner's name and city of residence. Ohio is one state which does not require such disclosure. However, Ohio, like most states are governed by a Lottey Board of Directors or Commission of 6 to 12 members from various public sector positions.
Please add any additional relevant facts.
This has been the most helpful and uplifting site that I have seen on the subject of keeping your name private. I did just that. Now, I, who has never committed a crime, charged with CRIMINAL IMPERSONATION.
I found a small quite town to live. Never thought I would go through anything so humiliating. Caged like an animal for what I call myself.
The hate from those minimum wage workers was cruel and unusual punishment. I totally understand the remaining silent thing. I was screaming and crying trying to explain. I used the common law name change because I was just buying time before it goes into the court records, but morbid curiosity beat me to it. Some people started questioning "how I get money". Long story short, it made the rounds until it got to a nosy police. He decided to use his position to get my private information from me. It was hell. They just took all the GOOD stuff from me. I feel lower than a snake's belly. The lawyer double crossed me. He will not even communicate with me. He took my money as if he deserves it. I believe he is mad that he did not charge me more. Now, I wish I had never ruined my nice peaceful life.
The joy of not worrying about finances again has been replaced with panic attacks, zero sleep and the silent treatment. Now, everything is reference to money. People make statements like... "I work for mine" or "I have to work for mine" or they make it known how they feel through non-verbal actions...throwing my change to me, refusing to bag my purchase or throw it in the bag roughly just to make a point. many
packages of smashed bread :( It was so nice before I was void of my privacy. A very small town. It spread like crazy. People talk about it in my presence to each other as if I am not there. Now, that the veil has been lifted off my privacy it is not that warm fuzzy feeling anymore. I am a recluse, isolated and [for the first time] feeling lonely. No more joy. Can live comfortable, but can't enjoy.
Sad and in horrible physical pain from all the worry. Hair falling out in clumps. My attempt for privacy and security has turned everything into a nightmare. That police was not a fluke. He was armed with all the questions that I had heard from lay people, but I was always able to change the subject or give some quick retort with them. He lit into me with questions like "how you get money?" accused me of selling drugs; just goating me. It turned into a circus. I was treated and talked to like an animal. Jealousy and indifference. The begging and hinting around for money is so weird and foreign to me because I was without for so long. Now, I am being handed cards for real estate, cars being bought by people who have little means to make the payments, but feel they know where to get the money. I have been followed, attempted robbery and the challege to fight! I tried to remain anonymous and live just a peaceful quite life by keeping a private existence. Now, look what it has gotten me. The police said, repeatedly, "We don't know who you are". The "we" being nosy people who want to violate other's privacy. I didn't commit a crime. Isn't privacy a protected right, anyway? MONEY CHANGES EVERYTHING!
The last thing I would want as a lottery winner is for you idiots to have my name. Go back to work you little people!
I came from England a while ago and played the lottery there.
It was the same type of lottery - 6 numbers from 49 - and you win.
But you get all the money that week...not 5 weeks later..and have to choose it all at once halved, or over 20 years but all that week and no taxes..you win 20 million (pounds not dollars) and you get 20 million and one more thing, you are garenteed privacy if you want it, so ofcourse you want it, well some do.
But as i was there from the biginning of the lottery over there i became interested in it as a subject matter and started to tape reports of winners and later buy books of lottery winners stories, of public winners and private winners...written by the lottery workers who would contact the winners to help them through the win whilst giving them the ability to remain private if they wished.
Some wished and others wanted the fame as they had wished to be famous and the win would garentee it, but some fate isnt as good as it seems.
some who went public had hatred, jealousy, and people so unable to understand them now that close friends didnt know what to do around them, they couldnt goto party's because those they gave presents to were uncomfortable with the size of them, (did small mean they didnt care, did big mean they were showing off their wealth), every time they went out with friends they felt they should pay the bill but the people who went out with them thought they were either showing off wealth again or that others were seeing them as leaches, it is as much a problem for those who win as those who know those who win
it is his or her right to kept secrect.
Kansas protects winners' privacy, too.
I want to know what the policy is in KY concerning powerball winners, and thier identity.
Can corporations claim tickets for winner and shield the individual from public scrutiny?
I read two posts up about that guy in the small town, about how people don't treat him as right as they should. before he apparrently won. That's sad that the STATE will rip away your identity if you win just so you could claim the cash. It's wrong. In the age of ID theft, this practice should be discouraged, or rather the practice of claiming in a trust or coporate entity should be the norm instead of the exception.
I understand about the potential of Lottery Company folks cheating using that practice, but more often than not it is normal players that win that get hurt in the process.
We should not treat this like a problem that the winner deserves to have foisted upon them because they, in some people's eyes, "commited sin" for buying that ticket and gambling. Why are we punishing winners? For what? so that the people who did not win that played or even the people who dont win and dont play can throw stones?
sounds like my husband or soon to be ex nothing would surprise me
"Keep it under yer hat" works better in Texas, fer some reason.
Be Well.
I am glad who ever won the lottery keep the name secret cause hitting the lottery is great but it is a homocide waiting to happen!!!!!!!!!!!!!!
Many of you crying about 'keeping secret' who won are fools.
People have a right to privacy whether they win or not.
Setting up a trust is the best way to do this.
Reality is, The government cant in fact setup most of the trusts that you or I would/could.. IN fact in some cases if the state did setup some of these trusts, they would be breaking most state laws and many federal laws...
Some of the socalled info about 'illegal accitvities of lottery officials or associations... is in fact bogus information.
Btw, of all the major 'big' winners (POWERBALL)... only 1-4 of them are actualy doing ok...all private and unknown... many of the others are broke or constatnly fighting to keep the money.
One reason to go 'trust' is simply to protect the funds and self from both government and criminals.
COMMENT:
1. I believe that lottery winners from any state, should be given a pin number like at a bank, to be used as a public identifier. We live in Oregon--at state that rats out anyone to everyone---for a price.
2. It takes a lot of clever actions to remain un-stalked here.
I found everyone's post interesting. All of you provide very insightful answers on how to handle a person's lottery winnings. If I won the lottery (clich, yes), I'd force myself to not waste it all in one year. For example, for my birthday several months ago, I received $13,000 from my parents and traveled to a few places around the world - and of course, I enjoyed myself to a certain extent. After my little spending spree, I felt bad months later when I needed the money to pay off school. On top of that, I'm going to China next month. Don't worry, I'm still able to pay for my school and China, but that $13,000 would've helped me a lot now. Maybe I'd be happier if I knew earlier on in my life that: If I were to get myself into a difficult financial situation, then I should have money saved up just in case.
I'm sure that the only person I'd share my winnings with would be my mother. Because we all have someone we trust, so I'd say it'd be her. She is a sweet and honest woman. Therefore, I wouldn't share it with my friends, relatives - no one. The nice thing is that my mom only wants the simple things in life: a house and a large storage to keep all of our junk. So, basically, just enough to get by.
You have to be an individual with a strong will, able to resist temptation. You must also understand the nature of how people are now-a-days. It's always the "easy way out". That's why people will ask you for large sums of money and discriminate against you if you don't give it to them.
I went to see my relatives a year ago with that $13,000. When I paid for their kids' schools, they thought then that I was some wealthy man. So, they started asking me to buy them all these luxurious things when I only wanted to help pay for their children's education. Although I ONLY HAD $13,000 to spend, I know how it feels. To me, that's a lot, seriously. So, losing it hurts, but realizing that your relatives are backstabbing jerks hurts even more.
Furthermore, you should have seen the expression of our representative's face when my mom and I went to our local bank a few days ago. I noticed her fake smile when she talked to us about depositing money from my mom's account into mine (she had looked up her account and saw how much she had). Later, when I walked over to the front desk to deposit a check, I turned around for some reason and - to my surprise - I saw her scolding at me. She looked as if she wanted to set me ablaze with her ugly eyes. Yes, she is a jealous person, obviously. So, I know how immature she is and what she'd do if she could do what she was thinking. Make sense?
Thanks to all of you for your posts. You've helped me come to this realization that the people around me are not trustworthy. People are easily jealous of those who have what they desire.
Therefore, respecting an individual's privacy should be the utmost concern. We don't want to live a life where people discriminate, rob, and ridicule us. No, we want to live happily and carefree. So, I respect the decision of those individuals who wish to remain anonymous. It's only logical. As humans, we are afraid of the imperfections of other people's evil nature.
PS - Your mother and father are perhaps the only people you can ever trust with money and life. Well, that's for me anyways. I don't know if it's the same for all of you. Take care and best of luck.
For those of you who would start spreading around the wealth to friends and family, see a tax advisor first. After the first $1 Million you give away, you would have to pay the government $450,000 for the privilege of giving the next $1 Million away, and so on. This tax is on money that you have already paid 35% federal income taxes on, by the way. That is a total of 80% in taxes if you want to give away a lot - this is even higher if you add state and local income taxes.
The 45% tax I am referring to comes from the transfer tax system we have in the U.S., i.e. estate taxes and gift taxes. Most people are not aware of these taxes because they don't give away enough money to be subject to them.
Here are the current rules:
Gifts After Death: Estate Taxes ("Death Tax") - any amount you pass on in excess of $2 Million is subject to a 45% estate tax. Amounts given to IRS approved charitable organizations are exempt from estate taxes, regardless of the dollar amount.
Gifts during life: Gift Taxes - If you give away more than a total of $1 Million during your life, the amount over $1 Million is subject to a gift tax of 45%. Also, even though you would not pay gift taxes on the first $1 Million, if you gave away up to the first million, your estate tax exemption would be reduced dollar for dollar. Additionally, an individual can give away up to $12,000 to another individual free of gift taxes and also not dip into the $1 Million lifetime limit - they can give this to as many individuals per year as they would like. Charitable gifts are also exempted from this lifetime tax.
The reason that the IRS imposes a gift tax is to protect their revenue that comes from the estate tax - So that the wealthy do not make deathbed transfers by giving away all their money to others and have nothing left in their estate for the government to collect death taxes on.
I wouldn't want the public to know my name, so the best way to collect is by having a Trust set up, and not letting anyone know your identity.
I would like to know if pennsylvania is a state one can remain anonymous. or any or all of the states that have anonymity.why and how is it legal for the government to recieve any of these winnings if someone has truelly won fairly. Why hasn't some fancy, intelligent, on fire lawyer,with a cause to challenge the government on this issue of receiving half of the earning of a winner. this dosn't seem right,that they receive all this and you are the one who won.I can see the 7percent on dollar,but nothing more.
can anyone tell me if one is married how and separated from your spouse and you win the powerball or megamillions or any large sum of winnings, what is the other spouse entitled to? How is this handled? Is the estranged spouse entitled to anything eventhough you live in separate homes? or a different state even? Thank you for all of your advice concerning the lottery it's been very helpful and eyeopening to the pitfalls of just putting a few dollars on a ticket. I would appreciate the research on this question, thanks again.
Lynn, they probably are entitled to half if you're still legally married. If in the off chance you hit that 1 in 175 million ticket, you may want to speak to a lawyer. Otherwise, you probably be shouldn't be too concerned about it. Just get the divorce over with. (Of course if he wins, you'd probably still want to be married)
Okay this was all quite good. Recently I have become a little interested in the lotto after watching the 'E' network do a segment called Lottery Nightmares. A lot of reasons people lose all the money within five years can be stupidity but a lot of it is something we all can do. Anyway I read other horror stories online and this is what happens when you chose NOT to remain anon.
One man had friends/relatives and strangers come to his front door at all hours looking for handouts. When he refused, they would throw rocks in his window and later he moved out.
One man was contacted by every single relative he never knew he had in addition to girlfriends he had dated in high school from nearly fourty years ago.
One woman's kids were threatened with a kidnap from school if she did not fork over money into some hideout. The kidnapping never happened but it shows what length people will go to.
Jack Whittaker. Just look him up online. He is the largest single winning lotto player ever. Because of the endless amounts of millions he had on hand he would eventually lose his grandaughter and her friend in a drug overdose. He gave his granddaughter new cars all the time and wads of cash.
One man had a contract out on his life by his family. They felt that if he died, his millions would be theirs.
Family members that want you to 'help' them in investments that they dreamed of. Opening up businesses they knew nothing about only to have them go out of business.
One man told of the endless hours of ringing the phone would do daily. Despite changing it and unlisting himself, people found his phone number. He received phone calls and letters twenty four seven looking for handouts. People begging him to pay off their mortgage or buy them a new car or new stereo. The worst he said was from charities who got nasty on the phone and investment companies. In addition he added were the 'companies' that wanted to 'buy out' his lotto contract. Eventually he got rid of the phone.
One man won multi millions and was swarmed with young women who suddenly found him attractive. He ditched the wife of twenty years for a young girl and then realized she only wanted one thing , his money. His wife didn't take him back and he sunk into depression and ended his life two years after the winnings.
Foolish investing. The first big investment mistake is buying a big home. Winners don't realize that this is a one time win while maintaining a big home is a lifetime payment. Can you afford to keep the home up when the lotto winnings are gone? If the answer is no, then the home is beyond your means already.
Good stuff to read.
To add...I don't know what the laws are in Massachusettes but I would NEVER disclose personal info of any sort. Honestly, after reading what some people go through after the world knowing they won...it is not worth it.
The advice one lawyer gave was best...set up a trust. The trust collects the check. Put the money into a DFZ account (decision free zone) for six mos. She stated that most lotto winners make their biggest flops in six mos. If you DO NOT spend it for six mos. you will have that time to let the surrealness be replaced with real. Hopefully your head will be cleared to spend wisely.
Some of the spending that causes lotto winners to lose millions in a few short years? The biggest is gambling. Most lotto winners are heavy gamblers. Most lotto winners that lost their money quick lost it in casino. The other is drugs. After that is the foolish stuff like mansions/Italian cars/airplanes/tractor trailers/yachts. People tend to buy things they never wanted in the first place, just because they can.
I always wondered how that one winner went through nearly TWO HUNDRED million dollars in just three or four years. He gambled most of it away.
If you win the lottery KEEP YOUR MOUTH SHUT!
There are whole legions of scam artists who feel that they have the right to your money. As mentioned above, create a dummy company that is owned by another dummy company (in another state), that goes thru a third and a fourth etc. For good measure, toss it to an off shore company (in the Caymen's possibly?)
Make these creeps work for the info. Each time they send a request, there is a fee involved. You could ultimately link it back to a company in Vegas or Delaware where a corporate agent holds the records. (Not expensive to do, a lot of mail forwarding services offer this as an additional service.)
As for the comments about family above, I agree -- don't say anything! My concern is a fairly greedy spouse of my sister's child. This minx would try to have her mother committed if she thought she could get a buck from it.
There is another consideration. If money is handed out to kids, they don't develop the work ethic needed in our society. Look at the Beverly Hills brat pack you see on the tv news. Kids need t6o learn to make a living and work hard.
So that's my take. Now, have you all purchased your Mega Millions tickets? 194 million cash payout is a nice chunk of change. Of course every scam artist in the world will be on the hunt for you if you win, but that's a problem I can deal with.
I agree with the state of texas. I don't think its none of the press business to know the identity of a lottery winner. If i was a winner I would like my identity to be kept a secret for safe purposes.
great advice about trusts.
quick question, though: what type of lawyer, specifically, would you want to retain if you won the lottery and wanted to set up a trust? a tax lawyer, perhaps? or would you want another type of lawyer specializing in a different field? if so, what type?
not that i'll ever win the lottery (or even play outside of the occasional really huge jackpot), but all this talk about retaining various professionals to guide you and protect your privacy has made me curious about what type of lawyer you'd need.
i'd assume you'd need a good accountant in addition to a lawyer, right? any other professionals?
For the guy who was terrorized in the small town, I do feel sorry for you, I really do, but why would you move to a small town where everyone knows everything about each other??
I'd move to a wealthy neighborhood where money doesn't stand out like a sore thumb. Moving to a place where people constantly would question how and where you got your money is foolish to me.
What could you accomplish there or buy there that WOULDN'T attract attention?? You couldn't just buy the most expensive house and not have people ask if you're rich. You couldn't buy an expensive car or have expensive items in your house without questions arising. You couldn't travel on vacations all year long because people would ask where you get the money to do such a thing. Not working would raise the biggest flag and I highly doubt you were humping a normal 9-5 at a local business, so of course people become suspicious.
You basically put yourself in a bad spot where anything you did that differs from the norm can and will be scrutinized. That's why if I'd win, I'd move to a wealthy neighborhood, Beverly Hills, Vegas, Hollywood, Hamptons, Miami Beach..etc..
It allows for you to live a somewhat luxurious lifestyle without people breathing down your neck, constantly wondering how you came across your wealth. That's because you won't be the only rich person on your block, and that will make the attention burden go away rather than attract nosy neighbors.
Again, I really do feel sorry for you because your intentions were good and they were taken advantage of, but you put yourself in that situation of trying to hide the person you are. I realize not everyone wants or feels the need to live in a big mansion and own beautiful things, I realize that. But in the long run, it'd make your life easier since your tax bracket now fits your lifestyle which raises less suspicion.
And not only would it ease the burden, you could actually invest money in real estate and claim your wealth off businesses and so forth, thus creating even less attention, because now you have a legitimate reason why you're wealthy.
That's why I wouldn't shy away from the wealth, if you embrace it, people will be less suspicious, since you are living exactly like they are. People don't question their own motives, so if you fit naturally, they most likely won't question yours.
Why even bother wasting your money in the first place? You have a better chance of being struck by lightning multiple times. Take the money and invest it.
I was the winner of a smaller jackpot several years ago, so I can speak from experience. When I say "smaller", I mean not one of those big newsworthy jackpots, but still quite nice.
I did not even know about it for a week. I was in the store and there was a big sign on the door that said, "Check your powerball tickets!" I stll didn't think that much about it but I went ahead and checked the ticket and it was a winner. I checked it about 10 times and then I went on-line and checked it again about 10 times.
Anyway....to get to the point, when I contacted the state lottery commission they put me through to the director, a very nice woman who was ulta-helpful. She was the one who urged me to consider remaining anonymous for many of the reasons others have commented on above. I used a recommended attorney who had done this previously for a much larger winner. We set up an enduring trust, the trust collected the funds, the funds were deposited, and once they were deposited and only then did I have any access. I invested almost all of the proceeds into highly diversified investments on the advice of my lawyer. I had some scam artists try to get my name but they met a brick wall in my attorney, who continues to receive a retainer every year as long as she keeps my name private. She handles much of my mail and other paperwork and this also keeps me at arms length from the scammers and beggers.
One important point I would like to make. Even attorneys can be crooks. Don't just run out to an attorney, check them out carefully. If your attorney could steal $20 million and hide in the Caymans for the rest of their life, some would do it and risk disbarment. The first thing I did was check the attorney out completely, and I also came up with some tricky security for my ticket that prevented anyone, including the lawyer, from claiming it. I'm sorry, but sometimes you have to think like the thieves that are out there.
So to make a short story long, anonymous is the only way to go, and a trust will work with almost any lottery commission. The way to guarantee that you remain anonymous is to set up a sliding fee scale with your attorney --- the attorney gets a base sum for a fee, and there is an additional fee (nice) that is paid annually as as long as your name remains 100% anonymous. This will keep your attorney working hard to protect your identity.
JKL, congratulations on protecting your privacy. However, once you have your trust set up and claim your lottery winnings, why do you need to bother with the lawyer anymore? Your name should be confidential to him as a matter of the client/attorney relationship not a conditional point requiring future payments to preserve it. Am I wrong about this? I'm not familiar in these matters specifically, but maybe you need another lawyer to advise you on dealing with lawyers. I think I would.
Incidentally, Are you comfortable in stating what fees you paid to get your trust done and retainer?
If anyone out there wins the lottery for any kind of substantial money--KEEP ANONYMOUS, PLEASE!!!! I am in agreement with so many previous people commenting on this article, saying that winners' identities should be kept private. I would NEVER GIVE MY NAME OUT if I won the lottery, and I would fight like crazy with lottery officials to prevent it from getting out! I have a husband and step-children, and am expecting a child shortly. NO WAY would I want my privacy destroyed, and potentially have my children and husband put in harms way because of crazy fools out to get my money (that includes real and imagined friends, relatives, outside agencies, charities, and pests in general!) People come out of the woodwork like ROACHES after someone wins millions. It's crazy, and it's sad. I DON'T NEED THE HASSLE, and neither does any other potential lottery winner.
I have a plan for my wiinnings of $26 mil. I receive one time payout of 5.5 mil after taxes. I am paying off balance on my house. I am planning to pay other debts of 70,000. car, creditcards, home equity etc. Be totally debtfree. Then I am putting $1 mil in 6 mo, 1 yr. 2 yr. CDs, once mature use them for living expences. I believe without debt expenses would be food, gas, utilities, travel and taxes. $3000.00 per mo.40,000 per year. $1 mil.would cover 25 years. Balance of 3.5 mil will be invested in 30 yr. t-bonds which will give me additional 2% or $ 70000 per year after taxes. Within 6 months I may quit my job. Charities freinds etc. will come little later. Let me know what you think about this plan.
Sure, pay off all debts. You may want the mortgage to stay for tax deduction purposes, but its no biggie. I would recommend putting the balance in a 6 month CD or money market just to keep it out of reach while you settle in to your new found wealth. Too much too soon can be a problem. Afterwards, I'd split the balance into either 5 or 10 year notes (difference between these and 30 years is not much) the rest I would put into high yield dividend stocks so you get the dividend and stock appreciation over the long term. I would find a job or vocation that interests you. Don't lay idle, its not a good thing for too long. Stay busy.
I share Paul's quick question from last month. What type of lawyer, specifically, would I want to retain if I won the lottery and wanted to set up a trust? a tax lawyer? I see commercials on t.v. from annuities attorneys. Are they specialists in this area? Is anyone?
There needs to be a good accountant in addition to some sort of lawyer. I think someone suggested an investment counselor, any other professionals? It seems to me there should be some type of person that could keep track of all the numbers that could be paid a monthly salary + a % of any misappropriated or missing funds discovered if others are handling all your money on your behalf.
It seems curious to me that JLK had a lawyer referred to her by the agency. In my dealings with government, they go out of their way to make no recommendations, validations or endorsements of any kind. I wonder how it came to be, in her state, that they made an exception to this rule.
I wonder, what is really the reason for knowing who won the the lottery? Is it so you too may beg, and adding to their headache. Perhaps you may want to do them some harm or, find a way to scam a couple of dollars away for yourself. Think to yourself, if it was me would i want all the beggers and bums trying to find me not to mentions the theives and murders. No Way, i say let them keep their identity. One day it may be you and by chance if it was me i would want to keep my identity.
i once came into a large sum of money and deposited about $40,000 in my bank account. as soon as the week ended, i was flooded with LOTS OF MAIL INVITING ME TO THIS AND THAT AND SAYING I SHOULD INVEST IN THIS AND THAT. so, no matter how 'private' one thinks they are being, as soon as you pass as little as $1,000 from one public place to another, EVERYONE knows! money is PUBLIC information so no matter how much you seal your identity if winning a lotto, 'they' will know your name, address, bank[s] and will solicit you accordingly. nothing is sacred out there, my friends, nothing :(
as far as the types of consultants, i don't believe you need a team of more than three to handle your wealth .. try to do double agents such as:
Tax Attorney - master accountant/IRS issues
Estate Attorney - for your Trust and properties
Wealth manager - an international Attorney [Switzerland preferred]
these are all you'll ever need - i have a friend that one and this is what he did and 14years later, is living as if he just one yesterday!! - the key was INVESTING 1/3 of whatever his winnings were into any and everything - cd's, money markets, some stocks - then 1/2 of the remaining is in a Swiss banque .. no one talks about that one :) so, he says he acts as if that one is not even there .. the remaining is what he actually lives on .. modestly, i believe about $320,009 a year .. he's not religious so no church or charities could sucker him BUT he does go and see where there are needs and buys supplies as opposed to giving money .. oh, I should mention, for a small fee, he was able to get a fountain at his alma marta with his name on it .. he says - something to show the grandkids .. I think his was a brilliant idea and if I should ever be so lucky, I am following his blue-print AS IS. thank you very much :)
Here's what your up against if you win the Mega Million jackpot in the state of Virginia.
Can I remain anonymous when I claim my lottery winnings? General
"No! Winners often ask if they can claim Lottery prizes anonymously. Virginia state law stipulates that a person must claim a prize; winners cannot claim a Virginia Lottery prize with a limited liability company or a trust, for example. In addition, the claimant's name, hometown and prize are public record and are released to the media (usually for prizes $100,000 and up). Winners also agree to allow the Lottery use of their photo for reasonable publicity. News releases, often with photographs, are displayed on the Lottery`s Web site. For some jackpots and for some Scratcher prizes, game rules require the winner or winners to appear at a news conference held by the Lottery.
Virginia Lottery prizes are provided by the public (people who play the games); it is important to disclose where prizes go. All expenditures made by the Virginia Lottery must be made public. A winner`s private information (telephone number, street address, Social Security number, etc.) is protected by law and will not be released."
Thanks very much to the anonymous info from 8/20/07 about the Gift Tax and Estate Tax to watch out for. Very timely advice since I plan on giving away large amounts of money to family and friends and I want to set up a scholarship program for disadvantaged 'A' students.. and so forth. I no longer believe giving money straight to charity organizations is the way to go at all; that includes giving to our Uncle Sam...Hey wait!... He already took his chunk!...Oh well.
By the way, a piece of advice I came across which I thought was very basic but still managed to create controversy for past lotto winners: GET YOUR OWN TICKET OR TICKETS, WITH YOUR OWN MONEY. DO NOT BORROW FROM YOUR FRIEND. God forbid you hold the winning ticket and you bought it with the dollar your friend lent you and you did not repay him yet!! Just think of the ramifications of this.... He would think he is entitled to 100% of it, at a minimum HALF! What is fair?! Just get your own winning ticket and avoid at least this problematic circumstance... Definitely have a Cool name Trust set up. Peace
I have been reading tons of lotto horror stories. It's true that whatever problems you have before become amplified with the money. Most of the winners think that they can do whatever they want because they're rich. If you wouldn't have done it before, why the hell are you doing it now???
I certainly wouldn't tell anyone if I had won. There are tons of ways to "prove" that you didn't. I'd keep my same checking account and deposit money into it like a regular paycheck and I'd keep the statement ready just in case someone found out I had won. Then I'd say, "Look at my bank statement. I have 2k in checking and 1,000 in savings. Does that look like a lottery winner to you?" LoL
And who's to say that I didn't have an online business that is finally taking off, and that is why I can afford a little bit bigger house and buy a few things? That is one mistake that winners make: they spend it all on lavish crap that screams "money".
I'd buy a little bit bigger house with a few acres, pay off my student loan and my car. I wouldn't buy a HUGE house, just big enough for us because we can always add on later if we need to, that way nothing would look too obvious. Then I'd decorate my house with new furniture (which I'd probably buy at Wal-Mart or a local furniture store LoL) and sit on the money. I really don't understand why people lose it all, sheer stupidity I suppose.
Think about it: You win the lottery and have 5 million after taxes. If you put that in savings, preferably at a bank that will give you 6% interest, you're looking at 300k a YEAR in interest alone. Break that down to 25k a month and 6,250 a week. Who couldn't live off of that? I wouldn't hand out money- I'd donate small sums to charities incognito of course, ha ha ha.
Once you buy a house, a new car and decorate the house with new furniture and such, what else could you possibly need? You can only buy so much before there isn't anything you need. My husband and I have decided that if we ever won, we'd each get 10k and just blow it on absolutely nothing. That way it would be out of our system and then we'd save the rest. I'd just like to be able to have my husband quit his job and spend time with me and the kids, not because I want new friends or crave the limelight.
A friend of mines parents are millionaires, but the money skips a generation. James won't get a penny, but the money goes to his kids when they turn 30. Their kids won't get anything, but their grandkids will. There are lawyers and advisors set up to take care of it so they don't spend it all, there is a certain amount they can spend per year. I think it's a great way to keep the money going in your family. I don't know all of the exact details, but that is what James has told me about it.
Personally, I think that you should always plan ahead. What if something happens and you lose the money? Could you afford the taxes on your house and the utility bills on the paycheck you had BEFORE you won the lottery?
I seriously would take every precaution to keep everyone from finding out. But I'd choose very carefully when it comes to lawyers. I'd hate to find out my lawyer skipped town with my money and is in a country with no extradition treaty!
Anyway, I have been dreaming for years that I win. I have been playing the same numbers for 4 years and I haven't won. YET. I'll let ya'll know if I do...because you won't see me on the news!
I am a Powerball Jackpot winner. The thing is about winning the lottery is that if your brainless BEFORE winning...then of course your gonna be BRAINLESS after it happens. The only thing that has changed is that your numbers happened to match up. Me being a wise young man, my sister was the first to know because her and i would speak about this subject on a regular basis and decided to come up with a plan.To this day, my other family members have no idea and remain clueless. Needles to say i've always been about my finances so them seeing me with nice things is nothin new. I personally did research as if it was a project due at school..lol
This is what i did after winning...
1. realized i won and jus about shit in my pants. I believe everythings possible so to be honest i was jus shocked that my intuition was correct.
2. I told my sis ..we celebrated and then followed this plan.
3. Got an attorney...started a Trust...Set aside 2 mill to splurge..then put together a team of investors to invest in agressive and slow wealth building situations.
Ive already gained back all, and more of what i put aside to splurge. The more ppl you tell the bigger the problem becomes because ppl always seem to have alternative motives. My mother now knows and has been told that if the secret is let out the bag..then her to will be cut out. Yea, it may seem harsh but the loyalty has gotta be kept strong. Thus far, it most definately has. Loved life before this happened, but now loving life even more.
In refrence to Mr. Trust comment,
Sounds like you have it all together! People believe that coming into a lot of money changes you. I guess that could be true depending on who's the individual. But one thing is for certain, it will change all the people around you.
Congratulations on your success and wish me luck!
Hello:
It is so true about what they say... Money changes everything (and everyone). I would DEFINITELY be anonymous. In my family, there is alot of sibbling rivalry and back stabbing going on, but once you win the lottery? All of a sudden they are all nicey nice to you. It is best when some things are better left unsaid, especially with your winnings. Friends, relatives, & neighbors knocking at your door asking you for favors with their financial crises, people calling you over the phone in all hour of the day and night for "help". It is not about being a tightwad with your money, but more like keeping a peace of mind (and sanity) within yourself. I am not a lottery winner, but I strongly agree with everyone else about keeping yourself anonymous and investing your money wisely. Thank you everyone for your input on this subject.
I totally agree with all the above comments on remaining anonymous, it will definitely help to have some kind of trust set up so that your identity remain anonymous. If I ever win anything that big, setting up a way to hide my identity would be the best option. If possible, I'd try to continue living life the way I had lived before I won the lottery, if not, the last option would be to move.
FAR AWAY!
If I do have that kind of money though, I'd certainly get a group of financial masters (loyal and mostly-honest of course) together and invest it accordingly.
don't let any one know you won the lottery. good idea. get a blind trust
and ease out of town. your new spending habits will alert some nosy leechs. dont over give to family. they will want even more. give freins even less. the real ones will be known to you soon enough.
money is not evil. people are. its sad that there has to be blind trust. moving away. losing friens and family but thats the way it is.
get a very good lawyer and give no one authority to sign your name to any documents.if you do make sure that it requires two signatures. yours being one of them. keep your money safe. have a good time but have it slowly and sober. if i ever win i will take my own advice
Many big lottery winners would prefer to remain anonymous -- to keep the media (such as Ft. Star Telegram reporters) from hounding them. And, to keep strangers and "relatives" from hitting them up for loans.
It's too bad the majority of states will not let you remain anonymous or collect your winnings using a Blind Trust. The lottery's want to be able to have the right to plaster your name and face on as many media items as they can for their own promotional gains.
I would definately remain anonymous. The last thing I want is people hounding me for money if I won the lottery. I would tell my parents and that is about it. I know I can trust them, but I have a greedy sister who would do anything for her share. I have a lot of money in CD's and she is always asking to borrow money, but I know she would never pay it back. It's better to not tell anyone.
To Paul up there, There is a difference between remaining anonymous and creating a Blind Trust Fund. Thats why i created the blind trust fund when i won as appose to jus remaining anonymous. A person who wins has a choice. Yes, they say its better to be open about it but you DO have a choice as to deny the press conference, as i did. Yes, you can ask to remain anonymous as some do but there could be nosey news columnists who do the research because if asked the headquarters by law must give the name of the person who won, like what happened with a guy who recently won in Kentucky like month or two ago. The cool thing with creating a Blind trust fund is that a person can do all the research they want but the only thing they will get is the NAME of the trust, NOT the name of the trustee's. Thats the whole point of creating one. . Ultimately, every single person has a choice. Its just the fact that most think they dont. So glad i did it the smart way. :)
Mr. Trust, Thanks, I'll remember that!
I buy multi-draw tickets every now and then, and I recently became aware that I've won in the lower double digits of millions. I live in a state that allows anonymous collection of prizes, but even with that and the added protection of setting up a blind trust, after having seen all those television specials about fallen winners and all the comments on pages like this, I feel that no matter what, to claim my money is to open my own personal Pandora's box. For the past few weeks my general mood has gone from the initial elation of finding you're financially set for life to a sort of lowly rumbling dread.
Not asking for sympathy, just describing the current state of mind of a soon to be millionaire by windfall. I'll claim the money when I feel better about it and know exactly what my plan is.
To anyone who plays the lottery, good luck. Sure seems like you need it the most after you've won though, huh?
In response to A, You should really cheer up buddy.I have no idea which game you won but I myself am a Powerball jackpot winner but am currently living the best of the situation. The E! show only put focus on one couple who had won who was living great but gave tremendous focus to those who simply couldnt adjust to the new life that winning the lottery brings.The show was meant to obviously put more worries into ppls heads just as the news does. I too, was asked to be apart of the situation but refused because why start by being private only to come out? That would be pointless in my eyes . Yes like i said above, i made the decision to only tell my sis and mother. Yet i am still in complete harmony of my life without the worry of "this person will try and take this from me" type attitude. Have you evver heard that you bring forth what you focus on? I live by that, therefore i only expect the best of everyday and things have always been goin great for me since i've come into this windfall. A person always gets what they expect. The thing is that most expect the worst, but then when the "worse" arrives, they wonder why. I by no means am telling you how to feel because you have complete control ovver how you feel. I have no idea what goes on in your head and vice versa. My advice would be to change your attitude on the big win you have recieved. You played for the purpose to win. Except it and ENJOY!
You dumbass. If you won several million bucks you wouldn't want a bunch of people just as stupid as you are hanging around your place and calling you all the time. People should have the right to remain anonymous. Man, is everybody in texas as stupid as you? Bunch of steers and queers. California rules!
Wow Moe, you're really insightful. I'm not from Texas but I live here now. Yes there are steers and yes there are queers but I also lived in California and it seems odd that someone from California makes a point about any other state having queers (or steers for that matter, where do "happy" cows come from)? Also, can't you be more creative than that? If you're going to randomly cut people down at least be intelligent about it. That saying is older than your lesbian grandmother's farts. See...that isn't hard! Anyway, you did give good advice. However, your other comments pretty much put you on the same level as all the "stupid" people in Texas but there are a lot of homophobes like you here as you can imagine so we're used to it. Thanks for taking this blog to a lower level, whether you know it or not you're one example of why anonymity is important...and thanks again for the good advice.
Never tell anyone, even your family if you can avoid it unless they are all educated, successful working professionals that earn a great living. Research about and start a business if you can, WITH HELP, it will provide the illusion that your money is coming from something people can grasp without questioning your charitability. If you can't figure out how to do that or you're from a small town just move away for a few years. Distance and time will help create a believable reason why you have some nice things. Also, the 6 month no spend period being recommended is a great idea. You must have time to plan your actions. Only use what's needed to set up your plan.
Listen to the winners here, they all say the same thing. Don't let ego or ignorance ruin what could be a wonderful gift in life. This won't relieve you of responsibility and burdens, those will just take a new form but you can control that if you're smart and realize that money creates different problems and you just have to deal with them properly, which means making hard choices.
As for the talk of to prove a lottery is ledgit should list winners names. Why should that even be of concern? If YOU play and if YOU win thats all you need to be concerned about. A list of fake or ledgit names isn't going to matter much to me (doesnt do anything for my pockets.) PLUS with all the craziesness that can surround winners. People should certainly be able to be anonomous winners.
Maybe you should read the story of the 1st big winner, 65,000,000.00.
A retired Houston nurse. She had to move from the house and small town that she was raised. People have the right to peace, even people who win big money.
Look it has happened in other countries where the politicians took money. Of the top of my head I can think of Albania where there was a goverment investment that nearly bankrupt the country when the politicians stole the money.
I am a financial advisor and planner that has helped previous lottery winners
Here are some things to consider why it is important to stay private about winning the lottery and avoid, Sudden Wealth Syndrome.
For a lot of people, winning the lottery is the American dream.
Having piles of cash only compounds problems for some people.
In our culture, there is a widely held belief that money solves problems.
People think if they had more money, their troubles would be over. When a family receives sudden money, they frequently learn that money can cause as many problems as it solves.
Winners get into trouble because they fail to address the emotional connection to the windfall.
There are two sides to money, Interior & Exterior.
The interior side is the psychology of money and the family relationship to money.
The exterior side is the tax codes, the money allocation, etc.
The goal is to integrate the two.
People who can't integrate their interior relationship with money appropriately are more likely to crash and burn.
Balancing, money, family & friends become overwhelming.
Because the winners have a large sum of money, they make the mistake of thinking they know what they're doing. They are willing to plunk down large sums on investments they know nothing about or go in with a partner who may not know how to run a business.
To offset some bad early decision-making and the inevitable requests of friends, relatives and strangers, I recommend lottery winners start by setting up a DFP or decision-free plan.
Take time out from making any financial decisions, by doing this right away and seeking a financial advisory team consisting of a financial planner, lawyer & accountant, to help make those important financial choices.
It's smarter to do it before you even get your hands on the money.
Most lottery prizes can be claimed up to 180 days after winning.
It's not a time to decide what stocks to buy or jump into a new house purchase or new business venture.
People who are not used to having money are fragile and vulnerable, and there are plenty of people out there who are willing to prey on that vulnerability, even friends and family.
I educate my clients on how to keep and grow their wealth while maintaining a life balance.
I have an 11 step process that has been successful in creating life long income for my clients.
Once your income is secured and you know that you do not have to work, unless you want to, the other wants and desires can be obtained.
Hope this helps shed some light on the subject.
ineed2know @ mail . com
Please feel free to contact me should you have any questions or comments.
"MY 2 CENTS" Your comment reads like a Grifters grab and catch! ineed2know, that's funny!
Lots of Luck!
Understand two things about the nature of lottery winners:
1) Most people who play are not wealthy. I doubt "The Donald" or Mr. Gates are rushing to the convienence store on a weekly basis to fill out their tickets.....
2) Most un-wealthy people are that way for a reason (or two).
You don't come into millions by not knowing how to manage it. Even if people are inheriting millions, you can bet that they are recieving the best type of instruction on how to handle it as well.
Lottery winners have no such support system. It's the primary reason we see stories about "winners gone wild" so often.
Money is the thing which stops us from acting out as we really wish we could. As such, money serves to amplify your underlying personality. So remember this when you read about lotto winners. It's a safe bet that all of the winners had these issues before they won. The money simply allowed them to act on their desires.
Some one knows the winner's right of privacy in Florida?????
I have reason to believe that my husband won the lottery there, but I have no way in finding out. I don't think it is right to keep it secret
Like a lot of people I have though what if I win. I wouldn't want my name know that is for sure. I would take the trust option as well to hide my identify. What I would do, and advise people to think about, is if I did win I would plan to place the money in a Swiss bank account. For the last two years the interest rate has been about 5% per year. Which at any amount over 1 mil (after taxes) is enough to live on. Maybe not the lap of luxury (depending on where you want to live), but to live well. Unlike a interest from US bank account as long as the money in the account is not used to invest in US companies then the money is not taxable. Other than the initial tax for winning that would cut out most future tax worries.
Like someone else said there is still taxes involved if you give any of that money to friends or family (even from one Swiss account to another). At that point find a good tax lawyer and deal only with the amounts you actually plan to give away the do not need to know anything about your total wealth. I would give some of it away, but I would be very secretive about to whom and how much.
I can see why everyone is paranoid about lotto winner keeping their identities secret. There are too many potential problems (relatives, charities, scam artists). But what I don't understand is why these problems don't happen to other people with a ton of money.
For example, when Wall Street bankers, CEOs, or other high-level executives get multi-million (or even billion) dollar payouts, should they be just as scared? This is public information, too; in fact, it is widely reported in the news. Did the founders of YouTube get a hundred phone calls from relatives asking for more money when they made $300 million by selling YouTube to Google?
So, what's the difference? Sure, sometimes those ppl don't get cash or other liquid assets, but the same idea holds.
remain anonymous as long as possible. move.
To Peter Chang, To answer your question, I think people feel, (relatives, charities, scam artists) that becasue the money was free, so to speak, everyone should get a piece.
Peter Chang asked an excellent question. People don't beg because it was a business and the owners earned the money. I believe people ask for money because they think the recipients are not entitled.
Personally, I would find a good estate attorney, after due diligence. He/she would have experience with other families, large money and investments. I would set up a trust to protect myself, my family and curtail taxes. I would have large life insurance policy to my primary beneficiary. I would then proceed to interview financial people. Anyone who advised me to take the lump sum would be ditched.(The annuity currently pays more than 3 million over the lump sum at roughly 4 percent. If the interest rate increases, so do the payments.)
I'd rather not be smacked with millions and have to make decisions, overnight. I'd rather get paid smaller amounts and "grow" into having money. I would give myself a year of T-bill laddering and 5 percent accounts to find good people, with a couple hundred grand, on 15 million. I don't think I'm smart enough to make millions work for me.
I only have my cell phone and I would disappear for a while. I would move to a secured condo building where all the residents have money. Takes a card key to even use the elevators.
I would need SSN's for the trust to send money to 4 people. I would tell my daughter and tell her that if she tells, I give everything to charity. The other three, I can just tell them they're on my insurance. They would get checks from some trust, out of the blue. My step would validate, deposit and ask questions later. He'd suspect/know, but he wouldn't tell.
I would do everything anon. I would create a back story for my condo, with my own family. I would be an artist who's loved in cities.
I have a dirt bag brother and cousins. My privacy is currently kept secret by my ex's family, even though I'm poor.
I wonder why most people take the lump sum when they generally don't know what to do with money? I've had the experience. I would take the annuity, live in a nice condo, well below my means with security. In the interim, I'd take business classes.
I would think I had I had a responsibility to myself to learn how to invest wisely.
A Blind Trust is most definently the way to go, but I noticed that that when claim information is published online for Mega Millions the name of the winning person or trust AND the name of the person who claims the prize are published from the Mega Million's Website. These are two different things. For example, in several cases I noticed that a Trust won the prize, but a person listed by name claimed the prize. The only way to get around that would be to set up a Blind Trust and have your Attorney claim the prize on your behalf. I am not sure which states allow an Attorney to claim the prize on his client's behalf. Does anyone know which states allow this? I also agree with the "SHUT UP" advice. The only person I would tell is my spouse. As far as the rest of the family I would make up a very creative story to explain how I could afford to live in a nicer home, take vacations, etc. Also no one needs to know that my brand new car or house or vacations were not financed.
I see no problem with people wanting to keep their names private. If there weren't so many greedy ass holes out there it probably wouldn't be a problem, but come on now if you won would you want complete strangers showing up on your door step telling you their sob story and begging for money?
A friend of mine won the lotto 10 or 11 years ago (before cash option), and set up a trust to manage the money rather than to remain anonymous. I thought he handled the family part of the deal really well. He has 16 immediate family members and gives each one $2000 as a Christmas gift ( he gets $320,000 annually) and tells them he is happy to share with them but don't even think about asking for additional for any reason or risk getting permanently removed from the Christmas list. I occasionally play golf with him at his club and sometimes he pays my green fee ands sometimes he doesn't. "After all," he likes to say " there's probably a thousand lawyers in Dallas who make twice as much as I do and a bunch who make 10 times more." And that's just lawyers.
it's because those who win the lottery are begged by the less fortunate
ive heard many stories of lotto winners who are now in the poor house because they get begged by others,family, and even companies start suing them for no reason
If i were to win i am stayin confidential 100%
so amny people out there are just plain greedy and selfish
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