How to claim lottery winnings anonymously using trust?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
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TurtleInvestor
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Joined: Mon Apr 16, 2012 9:12 pm

How to claim lottery winnings anonymously using trust?

Post by TurtleInvestor » Sat May 12, 2012 8:27 pm

No I did not win the lotto but I'm curious as to what the process is exactly. Did a lot of googling and there seems to be a lot of conflicting information. I hear this forum has a lot of lawyers/doctors so maybe you guys can help sort this all out :)

Let's say you don't live in a state where full disclosure is required.

You win the Mega Millions.

Questions #1: Do you sign YOUR OWN NAME on the back of the ticket? (I hear if you do, that's the name the lottery commission is going to share with the public). If you don't sign your ticket, you run the risk of losing it, having it stolen and somebody else signing it. Since it's a bearer instrument, possession is only by signature.

Question #2: Do you set up a living trust or a blind trust?

This seems to be the most confusing. People say do a blind trust because it means the beneficiary of the trust remains anonymous BUT from what I understand, a blind trust is when a beneficiary cannot see where the trustee is investing the money.

My question is: Will a living trust make the grantor/beneficiary private from public record? Or can that only be done through a blind trust?

Question #3: How do you donate the ticket to the trust? And do you sign the name of the trust on the back of the ticket?

I read you just sign a paper saying you're donating this lottery ticket to the trust. Is that it?

So what's the correct protocol here?

From what I gather, it looks like this:

1. Don't sign the back of the ticket yet. (Take pictures/video of it with your id next to it maybe to keep things safe?)

2. Set up a living trust with an attorney. You are the grantor and beneficiary and the lawyer is the trustee.

3. Sign a document stating you are donating the winning ticket to the trust. Sign the name on the back of the ticket with the name of the trust.

4. Have the lawyer claim the winnings as the trustee on behalf of the trust.

5. Only the lotto commission will know your identity (they have to verify you are of age and legal and aren't evading child support, etc.). The general public will NOT know the identity of the beneficiary. They will only see the name of the trustee on the Trust, even if they file for a Freedom of Information act.

Is this correct?

Or do you have to go Inception here and create TWO trusts and have the second trust be the beneficiary of the first trust?

I'm just OCD like this. I have to know what the correct answers are. It bugs me when there's so much conflicting data. Any help from lawyers to sort this all out would be greatly appreciated!

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TomatoTomahto
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Re: How to claim lottery winnings anonymously using trust?

Post by TomatoTomahto » Sun May 13, 2012 2:54 pm

I'm not a lawyer, but equally curious about how one does this. I did hear once that the trust has to have been in existence prior to the lottery drawing.

I hope someone who knows chimes in.

investor
Posts: 1003
Joined: Mon Feb 19, 2007 10:50 pm

Re: How to claim lottery winnings anonymously using trust?

Post by investor » Sun May 13, 2012 3:12 pm

equally curious.
I seldom buy a LOTTO ticket but it would be nice to know what to do if a winner was in hand.... :D

investor

yairmarx
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Joined: Mon Mar 28, 2016 7:32 am

Re: How to claim lottery winnings anonymously using trust?

Post by yairmarx » Wed Mar 30, 2016 8:18 am

Don't mean to resurrect an old thread, but I was curious to this as well. They say "immediately sign the back of the ticket". But what if your plan is to have a trust or LLC claim the prize?

adamthesmythe
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Joined: Mon Sep 22, 2014 4:47 pm

Re: How to claim lottery winnings anonymously using trust?

Post by adamthesmythe » Wed Mar 30, 2016 9:08 am

The lottery wants to use photos of the happy winners for publicity. I wonder if there is a requirement to participate in the publicity in order to claim the winnings.

TerryDMillerMBA
Posts: 97
Joined: Tue Jul 05, 2011 8:32 pm

Re: How to claim lottery winnings anonymously using trust?

Post by TerryDMillerMBA » Wed Mar 30, 2016 9:09 am

Certain states allow an anonymous claiming of lottery winnings through a trust. Mine (Ohio) does There are only a few.

http://budgeting.thenest.com/claim-lott ... 31858.html

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prudent
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Re: How to claim lottery winnings anonymously using trust?

Post by prudent » Wed Mar 30, 2016 10:02 am

This thread is locked as it is non-actionable. See: Personal Finance (Not Investing)
This subforum is for personal financial issues that don't involve investments. Examples of acceptable topics are:

- insurance
- employment issues
- credit card and credit rating issues
- mortgage and loan issues
- legal issues that have a financial component like wills and pre-nuptial agreements

Note that topics must be directly connected to your (or your friend's or family's) financial life. General comments or complaints about these topics will be locked or removed.


However, if the OP does win the lottery, send a PM to have the thread unlocked because it will then be actionable. :)

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