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Say you won a very significant lottery. Powerball, or whatever. Maybe 50 million. Maybe 100 million or more. The exact number is irrelevant. You have come into a substantial amount of money. Life-changing.
I’ve been thinking about this way too much – but I for one would absolutely want to remain anonymous after winning.
In some states (like Connecticut) you can claim the winnings as an LLC – so that your identity is protected. Other states, like New Jersey – a human being with a first and last name has to collect the winnings. Not sure which other states have which rules.
So say you won the big jackpot in NJ – and wanted to maintain that privacy?
Are there firms that handle such arrangements? If so – who are they, and what are their typical charges? 33%?
And what are the tax implications for handling a jackpot in that manner?
Just wondering what the ideal way of managing that kind of outcome would be… anyone have an idea?
Yeah – it’s pipe dream material here. But still curious!
I don’t know the ideal way to go about it but I’d establish a private trust to maintain privacy. I believe that by cashing in a lottery ticket here you have to agree to them using your name and likeness in certain ways. I would simply accept the check and deposit or donate it directly to the trust. Set the trust up so it’s not in your name or connected to your home address and go from there.
My wife and I already have a family trust so on paper, neither of us own real estate, we have no bank accounts, life insurance policies, retirement accounts or any other assets. We are both trustees for the trust and can manage the assets of the trust as we see fit.
I’d encourage anyone to visit an estate attorney (or read up on it) and establish a trust to manage your estate. A simple trust can be set up for $1000-$1500. One of the best things about it that your estate is not subject to probate proceedings when you or your spouse dies. In addition, most simple trusts include powers of attorney, living wills, final wills etc all bundled up in a neat little package.
EDIT: Wanted to add that if you do win a big lottery, you definitely DO NOT want to cash the ticket right away. Don’t even tell anyone that you won. You need to secure a good accountant and estate attorney to help minimize taxes, make one time gifts to children, establish college funds and to maintain privacy.
Are your names as Trustees publicly listed somewhere? If so, aren’t people smart enough to realize the trustees are most likely the owners of the trusts assets?
To the best of my knowledge they are not. Trustees are not owners of trust assets. The trust itself is the owner and the trust can essentially live forever. When I die a relative automatically becomes a trustee and that trustee can name contingent trustees and manage the assets of the trust as they see fit until they die.
Too many people never consider setting up trusts as they don’t think they have “enough” assets for such things. Trusts offer all kinds of benefits besides privacy. Long term planning for handicapped children comes to mind.
Rich people use trusts all the time but they offer us working stiffs advantages as well.
The problem is you’re not going to be able to keep your ‘big secret’ from family and friends. There are countless stories of big lottery winners who have been hounded forever for handouts from ungrateful kids and entitled family and friends.
Heh! Half the fun of winning the lottery for me would be in denying the leeches. Rule #1. Unless you live under my roof, asking for something, automatically gets you nothing. Rule #2. The penalty for breaking Rule #1 is that I give whatever you *might* have gotten to a complete stranger who performs a random act of kindness.
Handing out cease and desist orders until they can’t afford bail anymore would be fun too.
That said, if I ever came into a large sum of money I’d put away enough to live securely and then spend my free time literally giving away cash to strangers. Blowing people’s minds would be a blast!
Ideally, I would think the best thing might to be to get hold of whomever it was that set up the Clinton Foundation and have him set up the same kind of thing for you.
I like that idea. Minus the child abuse and trafficking, of course.
@IS – Does the trust allow for claiming the lottery winnings in someone else’s name? That is a big key. Because like I said, in states like NJ – a “person” has to claim the winnings (probably for that stupid photo op with the jumbo check).
Keeping it mum is secret for not fucking up the whole situation.
“Because like I said, in states like NJ – a “person” has to claim the winnings ”
Well, these days “person” includes corporations. Start a corporation. Let the corporation cash the ticket. Remember that good RHINO Romney’s famous quote, “corporations are people!”
On the other hand, one way to not lose all that money is to just spend it quickly. I was poor as a child. If I won $100M, maybe I would just spend all of it on candy. A giant, multicolored, fruity smelling pile of candy, maybe about 500 feet tall… Yeah, that’s the ticket!
🙂 Just kidding.
I don’t think so. How the winnings are claimed is part of the lottery rules I’m sure. I’d put the ticket in a secure, fireproof location without signing it and consult the legal eagles.
If it were a huge winning such as $100Mil I would be inclined to have several family and friends claim we chipped in as a group purchase. That way I don’t have to deal with the beggars and the wife and I would get 2 shares. Also the wealth would be spread around so I would not have to deal with too much “fame” as I don’t want that kind of attention ever. The installation of a 12′ fence laced with Constantine wire surrounding my property should take care of the rest.
Concertina.
Darn! I kinda liked the idea of a fence with Roman Emperors all along the top.
Thanks for the correction. I actually had no idea that it was called concertina. I have heard it called Constantine but never looked it up.
Legally change your name before collecting the winnings. Wear a burka for the photo shoot. 🙂
I’ll claim it for you. I only charge 10%.
Heck, as long as it’s over a million I’d claim it for you for 5% 🙂
I’d go to the office of an estate planning attorney right away and get them to set up the appropriate accounts; and have them go with me to turn in the ticket in the name of the LLC.
This reminds me of the book/movie “Constantine”. Perhaps Constantine wire would have the power to keep demons at bay…