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Old 11-19-2016, 09:15 AM
 
4,315 posts, read 2,523,101 times
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Quote:
Originally Posted by City Guy997S View Post
If this were true then the IRS couldn't have your estate settled until all the payments have been received.....not what they would want!
Here is what I have read about taking the 30 year payments and passing away before 30 years...

The lottery officials would calculate what percent of the total winnings you still have coming and then use that percent against the cash option at the time you won and issue your heirs a one time check for the balance.
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Old 11-19-2016, 09:18 AM
 
4,315 posts, read 2,523,101 times
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I also read that despite winners saying..........."I will not quit my job , but continue to work ".....over 95% who stated that did quit their job within 30 days of collecting their winnings.
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Old 11-19-2016, 09:32 AM
 
Location: Myrtle Creek, Oregon
12,260 posts, read 12,507,549 times
Reputation: 19414
Quote:
Originally Posted by FiveLoaves View Post
There are a lot of Stupid Taxes, Larry. Don't think you're so smart that you haven't been paying them.

There's the Tax on your Phone Bill that was supposed to fund a 911 system for Cell Phones...
"For more than a decade, every person in New Jersey with a phone has paid a tax on their monthly bill to make it happen, handing over a whopping $1.37 billion" Yet, no 911 system exists.

Or how about the Gasoline Tax that's supposed to be used for fixing Roads ??
You pay tolls to use the Bridges that were built and paid for decades ago, don't you Larry ??
I could go on, but I won't.


I spend $10 a week on Lottery Tickets. OMG -- that's $500 a year, not accounting for the couple of small winning tix I cash in every now and then. Gee, that's about 0.78% of my annual budget....what am I going to do about the Stupid Waste of Money ?
I know, I'll buy one less ticket every week. There, I slashed the Waste by 50% WOO-HOO !!


You go play in your Sandbox, dude. Let us play here.
I have a great deal for you. I'll sell you used lottery tickets for half price. You will end up with more money in your pocket. If you want to make government one of your charities, go for it. Just don't pretend you are ever going to get rich throwing your money away. Lotteries are a tax on stupid.
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Old 11-19-2016, 09:41 AM
 
Location: Columbia SC
8,969 posts, read 7,741,639 times
Reputation: 12182
Quote:
Originally Posted by FiveLoaves View Post
Just to take a break from all the "Demise of Social Security" threads -- I've got a real good feeling about the PowerBall Tickets I bought at lunch today. The Top Prize is $320 Million -- Cash Option would be about half that.

Just supposing you won a large sum of money, I'm talking multiple millions WOO-HOO !! What would be the proper claiming strategy ??

I think the Annuity Payout is stretched out over 30 years, is the Cash Option always the better choice ??

Do you set up a Trust or an LLC or something ??

How do you minimize the Taxes ?? Is the 5-year Income Averaging thing available ??


Ah, such stuff as dreams are made on......
1. Keep your mouth shut.

2. Hire a lawyer to set up some sort of a "trust" so no one knows you won it. If people find out you won it, they will come calling/bothering you.

3. Discuss with a CPA how best to take the winnings like lump sum or payment.

4. Get the hell out of town for an nice expensive vacation.
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Old 11-19-2016, 10:53 AM
 
Location: Central Massachusetts
4,800 posts, read 4,847,776 times
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Quote:
Originally Posted by David A Stone View Post
Here is what I have read about taking the 30 year payments and passing away before 30 years...

The lottery officials would calculate what percent of the total winnings you still have coming and then use that percent against the cash option at the time you won and issue your heirs a one time check for the balance.

The heirs would be liable for inheritance tax. But that is exactly what happens if the person dies before the payments are complete.

Quote:
Originally Posted by Larry Caldwell View Post
I have a great deal for you. I'll sell you used lottery tickets for half price. You will end up with more money in your pocket. If you want to make government one of your charities, go for it. Just don't pretend you are ever going to get rich throwing your money away. Lotteries are a tax on stupid.
You need not be so snippy. Again if you don't want to play the lottery then don't. If you don't have anything nice to say to people then keep your opinions to yourself. No one here wants to hear you bad mouth anyone. Especially me!!


Quote:
Originally Posted by johngolf View Post

1. Keep your mouth shut.

2. Hire a lawyer to set up some sort of a "trust" so no one knows you won it. If people find out you won it, they will come calling/bothering you.

3. Discuss with a CPA how best to take the winnings like lump sum or payment.

4. Get the hell out of town for an nice expensive vacation.
Great point on if you win. That is probably the best advice. It is hard not to tell anyone. First thing though is call in sick. Makes it easy not to tell anyone anything. You do not necessarily need a trust. Just do not answer the phone. You will have plenty of time so you can even leave your house and take up residence at a hotel until all is settled. The lawyer is a great idea and should be consulted even if no trust is set up. The CPA or a Financial Advisor that you can trust is good as well. You can open an account at Fidelity, Charlse Schwabb, TD Ameritrade, or Merrill Lynch and not invest in anything. This can be just a repository for the money under contract. Funds can be set up after. A bank would not be able to handle that size of a deposit.
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Old 11-19-2016, 11:29 AM
 
9,151 posts, read 7,216,558 times
Reputation: 13848
Quote:
Originally Posted by David A Stone View Post

I also believe if every state allows anonymity the lottery would soon die off. The lure of buying a ticket is imagining us being in the shoes of the winners.

Checking the results and finding out there was a big winner but no name, no description, no town ............takes the excitement away and thus the free publicity that keeps lottery tickets sold.

I occasionally buy a charitable raffle ticket from a local organization that gives away a new car.

If they stated they would no longer reveal the identity of the new car winner I would......

#1...........be suspicious that it might be rigged
#2...........decide to quit buying a ticket and donate that raffle ticket money elsewhere.

Making public the name and town of a Power Ball winner adds authenticity to the entire lottery system.
I dunno, both Britain and Australia allow their winners to remain anonymous. Both of yhose countrys have lotteries that are going just fine. I think there will always be enough people who want their bidness published to give players faith in the system. I often read news about a Britain winner including their name and photo even though they have the option of anonymity.

People who are very worried that the lottery isn't on the up and up would have stopped playing with the Hot Lotto debacle anyway. That happened even without anonymity.
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Old 11-19-2016, 11:37 AM
 
Location: In a rural place where people can't bother me ;)
516 posts, read 292,676 times
Reputation: 1009
Take lump sum. Start offshore shell company. Deposit 70% of the lump in a high interest accruing account offshore. Use the shell company to avoid taxes. The other 30% I would split up..15% would be swapped out for gold, the other 15% would be spending cash, assuming I won't the highest payout. Could adjust the percentage figures as I seen fit. The rich don't stay rich by being honest. Inconvenient truth.

Everyone in my family who has treated me well throughout my life (some haven't) would get a decent size financial gift in the form of an IRA that they wouldn't be able to touch until age 60(sorry, but in my family,37 people total, only my father, my wife and myself are frugal and forward thinking in terms of money).

Our children wouldn't even know about the wealth their going to inherit until they've proven themselves worthy of an inheritance of such magnitude.
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Old 11-19-2016, 11:44 AM
 
4,315 posts, read 2,523,101 times
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another tidbit about PowerBall..........EXAMPLE...if one had 4 kids, the winner could take 40% and have each kid take 15%.

All 5 could decide which option ( cash or 30 year payout ) each one wanted and pay their own taxes on it.

Dad could then tell the kids not to worry what he does with his winnings as they already got theirs.
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Old 11-19-2016, 11:52 AM
 
Location: SoCal
13,229 posts, read 6,331,374 times
Reputation: 9844
If I do win, I will donate half of my win to poor people, my way. Not through charity. I'm very wary about receiving large sum of money. I will not change my life. Act as if if I didn't win. Perhaps, put in a 30-year CD and forget about it.
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Old 11-19-2016, 02:47 PM
 
Location: East Side of ATL
4,365 posts, read 6,037,656 times
Reputation: 1951
Just get a CPA at a semi large firm (Grant Thornton and the like) and an attorney.

I don't know why people are scared of losing their money over a certain limit. You just need to make sure that your investments are diverse.
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