what to do if win some lottery money

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feh
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what to do if win some lottery money

Post by feh » Mon Jun 04, 2018 6:42 pm

Let's say a person won $50K on a lottery ticket. What steps need to be taken?

I don't see any reason to talk with an attorney. Is there?

Other than setting aside a portion for the taxes that will be collected and cashing the ticket, what needs to be done?

Gill
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Re: what to do if win some lottery money

Post by Gill » Mon Jun 04, 2018 6:45 pm

Nothing Thai I can think of. Isn’t estimated tax withheld?
Gill
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arcticpineapplecorp.
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Re: what to do if win some lottery money

Post by arcticpineapplecorp. » Mon Jun 04, 2018 6:48 pm

manage a windfall or it will slip through your fingers and be a lost opportunity. Read how to manage a windfall here:

https://www.bogleheads.org/wiki/Managing_a_windfall
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lakpr
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Re: what to do if win some lottery money

Post by lakpr » Mon Jun 04, 2018 6:49 pm

If it is only $50K, may be not much.

If it is higher, I believe the lottery officials want to publish name, photo and other personal details -- depends on how zealously the lottery winner wants to guard their privacy. Recently there's been one case where a lottery winner originally claimed the prize on her own name, but had a change of heart and went to court to claim the winnings in the name of a (anonymous?) trust. The size of the winnings was around $500Mill I think ...

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feh
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Re: what to do if win some lottery money

Post by feh » Mon Jun 04, 2018 7:30 pm

Gill wrote:
Mon Jun 04, 2018 6:45 pm
Nothing Thai I can think of. Isn’t estimated tax withheld?
Gill
Yes. I've done some googling, and 25% will be kept when the ticket is cashed.

FWIW - in the given state, the winner does not have the option of remaining anonymous. I wonder if a prize of this size will attract scammers or financial advisers...

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Re: what to do if win some lottery money

Post by Cheyenne » Mon Jun 04, 2018 7:43 pm

Recently there's been one case where a lottery winner originally claimed the prize on her own name, but had a change of heart and went to court to claim the winnings in the name of a (anonymous?) trust. The size of the winnings was around $500Mill I think ...
Thanks for the tip. I just set-up the trust. Now all I have to do is wait;)

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Re: what to do if win some lottery money

Post by Grt2bOutdoors » Mon Jun 04, 2018 7:51 pm

While your name could be publicized, most states don’t list those winners on their websites or on tv or in print publications. The lotteries usually publish those who win $1 million or more, and even then you may not get approached. I know someone who won a large amount on a scratch off ticket, after taxes this person came home with much less than $1 million because they are taxed at the highest marginal tax rates, both federal and local. Person took the funds, paid off some debt and helped family. Person did not need the money.
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Re: what to do if win some lottery money

Post by rantk81 » Mon Jun 04, 2018 8:42 pm

feh wrote:
Mon Jun 04, 2018 7:30 pm
FWIW - in the given state, the winner does not have the option of remaining anonymous. I wonder if a prize of this size will attract scammers or financial advisers...

Redundant? :P

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Re: what to do if win some lottery money

Post by tim1999 » Mon Jun 04, 2018 8:55 pm

Sign the back of the ticket and keep it in a safe place until you can personally bring it to the lottery office. You usually can't take this level of winning ticket to the retailer for processing. Basically, call the lottery folks and tell them what you have.

No reason to talk to an attorney unless you are in the middle of a bankruptcy proceeding, are being sued for back child support, or something like that.

I have won a greater amount on one bet in a casino, I had to sign a tax form or something, then they cut me a check (no withholding at casinos for US citizens), and it just took me about 5 extra minutes to enter it when I did my taxes at year-end.

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Re: what to do if win some lottery money

Post by oldcomputerguy » Tue Jun 05, 2018 5:42 am

feh wrote:
Mon Jun 04, 2018 6:42 pm
Let's say a person won $50K on a lottery ticket. What steps need to be taken?
Beats the heck outa me. Biggest lottery win I ever had was $10. Cashed it out where I bought the ticket.
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Re: what to do if win some lottery money

Post by Jack FFR1846 » Tue Jun 05, 2018 5:49 am

Save all your losing lottery tickets so you can counter your win with your losses. If you want to please lottery officials, do what many winners do......spend it all on lottery tickets. That would save you money on taxes because as many people do, you'll spend the entire $50k and then some, so look into whether you can use more losers against your winnings.
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Re: what to do if win some lottery money

Post by PFInterest » Tue Jun 05, 2018 5:51 am

feh wrote:
Mon Jun 04, 2018 6:42 pm
Let's say a person won $50K on a lottery ticket. What steps need to be taken?

I don't see any reason to talk with an attorney. Is there?

Other than setting aside a portion for the taxes that will be collected and cashing the ticket, what needs to be done?
Pay the taxes, save some, spend the rest.

investingdad
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Re: what to do if win some lottery money

Post by investingdad » Tue Jun 05, 2018 5:59 am

If it were me, that amount, I'd probably spend most of it. Maybe save 10k.

Assuming that's after tax. I don't think I'd need an attorney for that amount.

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Re: what to do if win some lottery money

Post by wrongfunds » Tue Jun 05, 2018 10:09 am

Going to be locked in 3, 2, 1, 0

mouses
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Re: what to do if win some lottery money

Post by mouses » Tue Jun 05, 2018 10:22 am

I believe there was a lawsuit recently which a lottery winner won to keep her name anonymous.

I would be a lot more worried about people breaking into the house thinking I kept large sums of money around, or my being kidnapped for ransom, than I would about crooked financial advisers. I'm sure people get boatloads of requests for money also.

Multiple lottery winners have been murdered.

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Re: what to do if win some lottery money

Post by LadyGeek » Tue Jun 05, 2018 3:09 pm

This thread has run its course and is locked (not actionable, hypothetical, discussion is not productive). General comment threads are off topic in the forums with "Personal" in the title. See: A reminder that non-investing general comment threads are OT
- It must be personal. In other words, you must be asking about your own situation. You can also ask on behalf of someone specific, such as a family member.

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If you have a specific question, please ask directly and provide sufficient information for members to supply appropriate advice.

Update: See below.
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Re: what to do if win some lottery money

Post by LadyGeek » Tue Jun 05, 2018 6:23 pm

After receiving a PM, the OP is asking on behalf of someone who won the amount specified.

This thread is now unlocked to continue the discussion.
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Re: what to do if win some lottery money

Post by Ged » Tue Jun 05, 2018 6:27 pm

rantk81 wrote:
Mon Jun 04, 2018 8:42 pm
feh wrote:
Mon Jun 04, 2018 7:30 pm
FWIW - in the given state, the winner does not have the option of remaining anonymous. I wonder if a prize of this size will attract scammers or financial advisers...
Redundant? :P
Family members may be a bigger threat.

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feh
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Re: what to do if win some lottery money

Post by feh » Tue Jun 05, 2018 6:30 pm

FYI - the ticket was redeemed today. For such lucky folks in the future, both federal and state taxes were withheld. The winner will receive a W2-G (gambling income) at the end of the year.

For a prize of this size, no attorney was deemed necessary.

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Re: what to do if win some lottery money

Post by Goldfinger » Thu Jun 07, 2018 10:02 am

Jack FFR1846 wrote:
Tue Jun 05, 2018 5:49 am
Save all your losing lottery tickets so you can counter your win with your losses. If you want to please lottery officials, do what many winners do......spend it all on lottery tickets. That would save you money on taxes because as many people do, you'll spend the entire $50k and then some, so look into whether you can use more losers against your winnings.
I believe this calls for a new acronym.

LLH = Lottery Loss Harvesting

:moneybag
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Re: what to do if win some lottery money

Post by desafinado » Thu Jun 07, 2018 5:19 pm

tim1999 wrote:
Mon Jun 04, 2018 8:55 pm
I have won a greater amount on one bet in a casino, I had to sign a tax form or something, then they cut me a check (no withholding at casinos for US citizens), and it just took me about 5 extra minutes to enter it when I did my taxes at year-end.
Now we have to hear that story...

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Re: what to do if win some lottery money

Post by aspirit » Thu Jun 07, 2018 5:29 pm

Ged wrote:
Tue Jun 05, 2018 6:27 pm
rantk81 wrote:
Mon Jun 04, 2018 8:42 pm
feh wrote:
Mon Jun 04, 2018 7:30 pm
FWIW - in the given state, the winner does not have the option of remaining anonymous. I wonder if a prize of this size will attract scammers or financial advisers...
Redundant? :P
Family members may be a bigger threat.
Data confirms ..
Family members may be a bigger threat.
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