In many situations, that's where the self-proclaimed "lottery lawyer" Kurt Panouses comes in. He has helped more than 30 jackpot winners, including the Michigan group which split a more than $1 billion Mega Millions prize in March 2021.
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.
If you win the lottery and really want to stay anonymous, research the rules for your state. You might be able to claim the money in the name of a trust. Then find trusted advisors like tax attorneys, trust and estate attorneys, and accountants.
Set up a trust. Speak with your estate lawyer about setting up a revocable trust to which you can make changes as needed. Retrieve the lottery ticket and have the trustee sign the name of the trust on the back. Lock it up again.
California has the highest income tax rate in the country, but it doesn't tax lottery winnings. Florida, South Dakota, Texas, Washington, Tennessee, and Wyoming don't impose any income tax at all, so your winnings are safe here. The IRS additionally imposes a 25% federal withholding rate from lottery winnings.
Absolutely yes. It's entirely the winner's decision if they want to share news of their win. We have an aftercare programme in place to ensure that all winners have access to legal and financial advice.
Currently, that amount is about $5 million a person. Any property given away over that is taxed at the rate of 35%. So by claiming the lottery winnings as a family partnership, a winner can claim that they are not making a taxable gift, because it was a family investment. This could save millions in gift taxes.
“Don't announce to strangers or extended friends and family that you've won — at least not right away.” Keeping things private will help you avoid being bombarded with requests for money or unsolicited advice on how to use your earnings.
When you win a Powerball or Mega Millions jackpot, there is a 15-day waiting period between the draw date and when the jackpot will be paid out, as money from ticket sales needs to be collected in order to pay out the jackpot.
If someone were to ask you what you would do once you become a Powerball winner, you might say, "quit my job" or "buy a mansion." However, experts suggest that you don't make any big moves immediately.
Another reason why lottery winners may choose to go public is for the support Camelot–which runs the National Lottery–can provide winners. Julie Jeffrey, who won £1 million in 2002, told Yahoo: “I went public for the same reason the majority of people do–there is nowhere to hide.
The Bridge Trust® The Bridge Trust® is a special type of irrevocable trust which can both protect your assets, while keeping them available for YOU to use. It also has a simple “grantor trust” tax status, which means there is no need for an additional tax return or layer of trust taxes.
A blind trust is a living trust that is completely controlled by the trustee. The settlor — that is, the person whose assets fund the trust — and the beneficiaries have no control over or knowledge of the status of the assets held in a blind trust.
A few other states permit winners to form a trust for their winnings. They can collect their prize through this trust to keep their identity hidden. The state of California does not permit lottery winners to hide their identities. California winners are compelled by law to reveal their names and locations.
Pennsylvania Lottery winners cannot remain anonymous. Only certain claimant information can be released. This assures the public that Lottery winners are real people and that the Lottery operates with integrity and transparency.