What Lottery Lawyers Do for Jackpot Winners
Well, yes. They're not absolutely necessary, but a good lottery lawyer can keep you from making bad decisions that could jeopardize you or your wealth. They'll be there to stop you from making common mistakes that cause lottery winners to go broke. The larger your prize, the higher the stakes, and the more sense it makes to hire a lottery lawyer who can help you manage it all. Besides, it's not like you wouldn't be able to afford them anyway.
That is why he shared nine critical tips for lottery players, which include:
Unfortunately, only certain states allow lottery winners to remain anonymous. These states are: Kansas. Delaware.
An accountant can make sure your taxes are in order year after year (more details inside). Interview several Certified Public Accountants. Remember, you will have to pay federal taxes on your win. If you plan to invest your money, do so wisely.
Lottery winnings do not affect Social Security disability income (SSDI), but it can reduce or eliminate any Supplemental Security Income (SSI). Some states have laws in place that remove people from public assistance programs such as food stamps or other welfare programs if they win the lottery.
According to the New York Daily News, 70 percent of lottery winners end up broke within seven years. Even worse, several winners have died horribly or witnessed those close to them suffer.
Irrevocable trusts protect lottery winnings because the assets legally do not belong to you. They also benefit your survivors as they are not subject to estate taxes. Blind trusts are also suitable as they protect your winnings from unscrupulous relatives and friends who want your property.
The Lotto legal department recommends that lottery winners seek out one or more of the following: a tax planner, a financial adviser, a certified public accountant and an attorney.
Even if the holder takes the $496 million cash prize over the full jackpot amount spread out over 29 years in an annuity, he or she should have ample income for a potentially long retirement. A chance at that kind of money can be hard to pass up, even if the odds of winning a Powerball jackpot are 1 in 292.2 million.
A lottery winner can make a gift of some of the lottery winnings. This is legal only up to the annual exclusion limit, or else it will need gift tax liability. Making yearly gifts in this fashion is a good way to share the winnings with family members and friends while mitigating the tax implications.
But when you add it all up, the decision to accept a lump sum offer is more about controlling and preserving your future income sources than it is the annuity payment you are promised from the pension.
Here are 3 suggestions for staying rich after winning the lottery:Purchase a business that will generate a consistent income. This could mean buying a franchise of something that is already established and has a good reputation. ... Diversify your investments. ... Use some of your money to invest in income-producing property.
âTo the extent that you can keep your winnings under wraps, I would,â she says. âDon't announce to strangers or extended friends and family that you've won â at least not right away.â Keeping things private will help you avoid being bombarded with requests for money or unsolicited advice on how to use your earnings.
It may seem impossible to wish you hadn't won millions of dollars. But it's happened often enough that the phenomenon has been dubbed the "lottery curse." Don't believe it? Here are seven victims of the lottery curse â people whose "lucky" win turned sour, leading to divorce, bankruptcy, or even death.
Here are some signs that tell you that you should hire a lotto attorney:
The primary requirement is that you get a skillful and experienced attorney. Even if heâs your friend, you shouldnât trust a lawyer with no reputable clients in their portfolio.
The process of hiring a lotto lawyer isnât different to hiring an attorney in any other area. Investing some time and effort in finding a suitable expert is vital for your future. Check out the factors to consider during the selection process!
If you donât already have an expert in mind, how about letting us suggest lawyers that specialize in lottery winnings? Check out these attorneys and pick your favorite!
Do you want to hire a professional lotto attorney? Here are the steps to take when partnering with an expert:
The cost can vary significantly, but the services of an expert can be expensive. That means you might need to pay around $100-$150K in the first 12 months of using the attorneyâs services. The good news is that you will cover all the basics during that time.
What services can you expect from a professional attorney? Here are some situations when you could benefit from a lawyer:
Sandra Grauschopf has been working in the contests industry since 2002. She is a passionate sweeper, with tens of thousands of dollars worth of prize wins to her name, and she has been sharing advice about how to be a winner for over a decade.
Unlike many winners, Andrew "Jack" Whittaker was already wealthy when he won the largest jackpot ever awarded to a single Powerball ticket on Christmas morning in 2002. He chose a lump sum payment instead of an annuity, so he took home $113-some million from his $314.9 lottery ticket. ďťż ďťż
William Post III's win from the Pennsylvania Lottery should have been a dream come true. Instead, he became a victim of the lottery curse. Image (c) William Thomas Cain / Getty Images
Willie Seeley's lottery win went from a dream come true to an annoying curse -- quickly. Image (c) Montaplex
Filling out a lottery ticket led to Abraham Shakespeare's murder. Image (c) David Joyner / Getty Images
Although these lottery curse stories make it seem like winning money is the worst thing that could happen to you, remember that the media loves a riches-to-rags story. Lottery curse stories are often blown out of proportion.
While we would love to think that if we win 20 million dollars that we would be handed over that exact amount, we mostly all realize that is not the case. That big win comes along with a substantial tax bill that needs to be rectified, either right away or during tax season.
We have all seen the news stories: Local Woman Wins Big Earnings at Her Nearby Gas Station. It is no surprise that the entire community (the whole country, even!) gets excited when there is a lottery winner. It is almost as if they won the prize along with the winner.
If you win a substantial amount of money, you will likely need some legal documents drawn up to see how to best protect your newfound bounty. You will want to put protections in place for yourself and any recipient of the prize money that you choose.
You may ask yourself why would I find myself in the midst of a lawsuit? Unfortunately, as we said earlier, there are many people who are looking to capitalize on another personâs gains.
Winning the lottery is an exciting and once-in-a-lifetime event. It can come at a momentâs notice and most of the time, we purchase our tickets and think that there is no way that it will actually happen to us. We purchase it with a dream and a hope and a dose of reality.
Some of the benefits of hiring a lottery lawyer are: They can help you keep as much of your winnings as you legally can. They can help protect your identity. They can introduce you to the right people. They can set up your estate for your family's future.
They can protect you from potential lawsuits and counsel you in such events. A good lottery lawyer will help you find legal ways of minimizing your tax liability. They'll also be able to assist you in setting up a trust or other legal entity to claim your winnings, if you need to.
What to Look For When Choosing a Lottery Attorney. You should take your time when looking for a lottery lawyer. The difference between a good lawyer and a bad one can easily cost you your money, time, and worse. Choose from different candidates, so you can find the best one.
If you won the lottery, the first person you want to hire: an attorney. Thatâs right, just one. Itâs true that youâre going to need all sorts of lawyers who specialize in taxes, trusts, estates, and the like. But, you donât really need to hire an entire cavalcade immediately.
Kurland has also represented some of the biggest winners in recent lottery history, including: Putnam Avenue Family Trust: Also known as the winner of the $254 million Powerball jackpot of November 2011. Rainbow Sherbert Trust: Also known as the winner of the $336 million Powerball jackpot of March 2012.
Among his most notable clients include Maureen Smith and David Kaltschmidt. The married couple is better known as 1/3 of the winners of the $1.58 billion Powerball jackpot back in January 2016. On top of providing legal counsel, Panouses also acts as the defacto PR person for the couple.
Well, yes. They're not absolutely necessary, but a good lottery lawyer can keep you from making bad decisions that could jeopardize you or your wealth. They'll be there to stop you from making common mistakes that cause lottery winners to go broke.
Big lottery winners may feel overwhelmed by the number of decisions they have to make before they even claim a jackpot. To make things even more confusing, each state that participates in the lottery has its own procedures for claiming a prize and for minimizing tax liability. That's why a lawyer's help really comes in handy.
If you've just won a bundle of cash, you might balk at giving a big chunk of it to a lawyer right off the bat. However, hiring a good lawyer really pays off in the long run. Here are some examples of what lottery lawyers do for jackpot winners:
Winners spend a lot of time with their financial team, so it's important to find someone they trust and feel comfortable with. And of course, the lawyer should be familiar with the unique problems lottery winners face.
If you win a large prize in a lottery, getting a good lawyer should be a priority. You'll want to have representation before you tell anyone outside of your immediate circle of family and trusted friends that you've won, and certainly before you claim your prize.
Powerball tickets are sold in 44 states, as well as in Washington, D.C., the U.S. Virgin Islands and Puerto Rico. As of last time we looked, all but six states require lottery winners to come forward publicly. Delaware, Kansas, Maryland, North Dakota, Ohio and South Carolina allow winners to remain anonymous. Many other states are in the process of enacting such laws- some may even require you to donate some money to charity if you want to remain anonymous. Other states permit winners to create limited liability companies, so that when their names have to be announced, itâs the companies and not individuals that are identified. Think seriously about that.
Delaware, Kansas, Maryland, North Dakota, Ohio and South Carolina allow winners to remain anonymous. Many other states are in the process of enacting such laws- some may even require you to donate some money to charity if you want to remain anonymous.
Make safe moves, and by all means, donât show it off or brag about it . Itâs like Kenny Rogers said (with my own personal remix): Every gambler knows. That the secret to survivinâ. Is knowinâ what to throw away. And knowinâ what to keep (locked in a safe) âCause every handâs a winner. And every handâs a loser.
You wonât believe the tax issues which could come up- state taxes, federal taxes, gift taxes, corporate taxes and other taxes even the game Monopoly didnât try to make up. The lawyer can help with this, as they have a fiduciary (financial) duty to you.
Although disputes can happen and custody can be disputed, whoever signs the ticket and presents a photo ID can claim the prize. You may be requested to verify where you bought it and/or how you obtained custody.