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I've found some ideas about gift taxes and how to handle those.
With a 300 Mill NET windfall, I'd want to give about 50 mill away to family and friends, which of course would trigger gift taxes..... which would almost double that amount.
On one hand with that kind of found money, let Uncle Sam take what he wants and is due. On the other hand IF there's a way to legally mitigate that exposure why not.
For the OP you can tell, I want simple. No giving people up to the gift limit every year. No putting them on a payroll. I'd want to give them their 2 mill and let them go. If they blow it they blow it. The bank is closed
The harder issue for me would be "only" winning the second prize of one million gross. After taxes, and taking care of myself, I wouldn't have anything left to help friends and family and that's something I'd really like to do. Oh well.
I have a group of about 4-5 friends, we're in our late 50s early 60s. The dollar amount we need to be set for life gets smaller every year. With just a half mill NET, they say they'd quit tomorrow. We dream about winning and gifting each other what we need so we could all retire...and be free from the encumbrances of the work world!
Gift tax isn’t 100% and you could apply the gifting towards your lifetime exemption. You could also creat an entity prior to claiming the jackpot that would pay you 95% or whatever and the then allocate 5% to other people and they’d be responsible for the income tax and no gift tax would apply
I've found some ideas about gift taxes and how to handle those.
With a 300 Mill NET windfall, I'd want to give about 50 mill away to family and friends, which of course would trigger gift taxes..... which would almost double that amount.
On one hand with that kind of found money, let Uncle Sam take what he wants and is due. On the other hand IF there's a way to legally mitigate that exposure why not.
For the OP you can tell, I want simple. No giving people up to the gift limit every year. No putting them on a payroll. I'd want to give them their 2 mill and let them go. If they blow it they blow it. The bank is closed
The harder issue for me would be "only" winning the second prize of one million gross. After taxes, and taking care of myself, I wouldn't have anything left to help friends and family and that's something I'd really like to do. Oh well.
I have a group of about 4-5 friends, we're in our late 50s early 60s. The dollar amount we need to be set for life gets smaller every year. With just a half mill NET, they say they'd quit tomorrow. We dream about winning and gifting each other what we need so we could all retire...and be free from the encumbrances of the work world!
Not if a trust collects the win and those you gift money to are named in the trust.
I have a group of about 4-5 friends, we're in our late 50s early 60s. The dollar amount we need to be set for life gets smaller every year. With just a half mill NET, they say they'd quit tomorrow. We dream about winning and gifting each other what we need so we could all retire...and be free from the encumbrances of the work world!
Buy the tickets as a group, or at least claim the prize as a group.
There was a fellow who sold everything he owned and bet all of his money on a single spin of the roulette wheel at The Plaza in Las Vegas. He was pretty young so he had plenty of time to start over, financially speaking.
I've always said the first thing I'll do IF I win a big lottery is get my phone number changed. That much money will find you more relatives than ancestry.com and all the other genealogy groups combined. Then I'm building us a house all on one floor so my wife won't be limited by stairs. Whatever I do with the rest of it is whatever my wife tells me I can do. lol
Gift tax isn’t 100% and you could apply the gifting towards your lifetime exemption. You could also creat an entity prior to claiming the jackpot that would pay you 95% or whatever and the then allocate 5% to other people and they’d be responsible for the income tax and no gift tax would apply
Gift tax is 50% over $15,000 and the giver owes the tax, not the recipient.
Lifetime exemption is just under 13 million now. So you could give 13 people almost a million each with no tax due.
You can do all sorts of "investments" like paid up life insurance policies that would payout tax free as well.
Gift tax is 50% over $15,000 and the giver owes the tax, not the recipient.
Lifetime exemption is just under 13 million now. So you could give 13 people almost a million each with no tax due.
You can do all sorts of "investments" like paid up life insurance policies that would payout tax free as well.
It's actually $17,000 or $34,000 for a married couple (not 15,000). You may also pay medical bills directly to the hospital (etc.) and tuition directly to the educational facility. The Federal exemption is $12.92 million ($25.84 million per married couple). Plus, you have to look up your State's exemption. My state is $1 million. For Federal it reverts back to $5 million in 2026.
Gift tax is 50% over $15,000 and the giver owes the tax, not the recipient.
Lifetime exemption is just under 13 million now. So you could give 13 people almost a million each with no tax due.
You can do all sorts of "investments" like paid up life insurance policies that would payout tax free as well.
I’m well aware of how this all works
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