Lottery

[Hugh]

Just wondering what would you do?

Keep it a secret, tell people? Or maybe use the money to start over, just walk away, start somewhere new, a fresh start.

[Parsifal]

If you win big you'd be wise to keep it a secret from everyone (unless you're married).
Not only will you be harassed into misery by friends, relatives and everyone whom you have ever known for the last 20+ years (you never knew that you had so many friends), but public knowledge that you've won hundreds of millions becomes a serious security risk for you (think: kidnapping for ransom).  The billionaires of the world have bodyguards for a reason.  You'd be easier pickings.

Form a corporation (transparency laws differ by jurisdiction) and through it make very large donations to worthy charities.  Keep only a small fraction for yourself.

Most big winners of the lottery end up broke and miserable.  To avoid that fate you will need professional financial and management help (and a psychologist/psychiatrist).

Why do you ask?  Have you won?

[Kev]

Most big winners of the lottery end up broke and miserable. To avoid that fate you will need professional financial and management help (and a psychologist/psychiatrist).

This

[deegee178]

Form a corporation (transparency laws differ by jurisdiction) and through it make very large donations to worthy charities.  Keep only a small fraction for yourself.

I’d do this but rather than big donations I’d just look to support smaller charities that do good work in local communities. But like The Secret Millionaire.

[ladsnet]

I can't understand why you wouldn't want to keep it quiet if you won big.
Although I can't understand the current LOOK AT ME world we live in

If you've won the Euros Hugh.. a donation to your favourite male celeb site wouldn't go amiss !

[Hugh]

I haven't won. I'm asking out of curiosity. I been thinking what if and wondering if people would be open to saying that they had won big

And as Parsifal has pointed out that if you win big you'd be wise to keep it a secret from everyone (unless you're married).

Have thought about people harassing you. Friends, relatives and everyone whom you have ever known for the last 20+ years. People who looked at you and judged you with knowing you and thought you were a piece of crap who isn't worth their attention. You got millions, suddenly you are worth their attention, along the line of "You should never say bad things about the dead, only good". A dickhead is a dickhead with or without £50 million.

[romeolover]

I wouldn't go public for the reasons said above, the number of people contacting you for handouts would be very stressful.

However, I'm sure I read somewhere, if you don't go public, you get less money.

[Hugh]

No, you would get less money if someone else won, as well as you.
Like if you and 3 other people won the jackpot, the jackpot would be shared 4 ways. If the jackpot was £20 mill, and shared 4 ways, you would get £5 million.

In the US, and you won the Lottery, if you take a lump sum you would pay taxes.

[Parsifal]

However, I'm sure I read somewhere, if you don't go public, you get less money.

OK, so if instead of £100 million if you go public you get £50 million if you don't.

In the US, and you won the Lottery, if you take a lump sum you would pay taxes.

You pay taxes either way whether you take a lump sum or take it spread out over 20 years.  In the latter case you may wind up with a lower tax rate, but you still pay taxes.

I notice a lot of seniors buying lottery tickets.  So if an 80-y/o wins the big pot what should he do, take a lump sum or spread it out over 20 years?

[KernowChris]

In the UK the winnings are tax free, of course what income you derive from those is taxed as normal.

[jdcyl]

Technically, you can’t keep it secret. It’s in the fine print that, should you win, you agree to participate with the lottery corporation for publicity purposes. I think most (or all?) lottery corporations are state-owned, and they have an interest in showing some real person is winning, i.e., that state-run gambling isn’t just a sham. You could send an agent initially to contact the lottery corporation, but ultimately the winner has to disclose. The tax collector has to know who is receiving all that tax-free/ taxed windfall.

Of course how much press coverage the winner gets is dependent on the size of the win.

[Hugh]

From the National Lottery website the Winners' advisor Carter:

"If the winners wanted anonymity instead of going public, would you still advise them?

Absolutely yes. It’s entirely the winner’s decision if they want to share news of their win. We have an aftercare programme in place to ensure that all winners have access to legal and financial advice.

It’s often the case that when a winner decides to remain anonymous, we are the only people that know about their win so we keep in touch with them for as long as they want to. Often they like to talk to someone or just let us know what they have been up to."

[jdcyl]

On this side of the pond, whenever you go into those little shops for candy (or cigarettes), if they have a lottery machine, there will be photos posted of the winners, with the amount won.

[Hugh]

Wouldn't it be a variation between States? Some private, some not.

[jdcyl]

Each jurisdiction has its own rules.

[Parsifal]

Wouldn't it be a variation between States? Some private, some not.

Each jurisdiction has its own rules.

Exactly.  Here in the U.S. each state has its own rules.  There are only a handful (less than 10 I believe) that let you claim anonymously (while still having to pay the tax).  New York State does not allow an anonymous claim, but I've read that with the help of some expensive lawyers you can get around it.  You have to form two corporations.  The first one claims the prize.  It's owners are not anonymous, but that will be just another corporation whose owners are anonymous (YOU!).  Something like that.

If you are a big winner (say more than $100 or whatever) then you will not be walking into the candy/cigarette shop to claim your prize.  There are instructions on how to do that, but I never had to read them.

[Hugh]

11 states that currently allow lottery winners to remain anonymous where a winning ticket was purchased in their state are: Arizona, Delaware, Georgia, Kansas, Maryland, New Jersey, North Dakota, Ohio, South Carolina, Virginia and Texas

[Parsifal]

Thank you. 

If I were to win the PowerBall or MegaMillions or whatever my first actions would be two phone calls, one to a lawyer and one to my accountant.

And if for some reason I would have to show up in front of a TV camera I would surely come unshaven and wearing sunglasses and a hat.   My name would be public, but at least no one would recognize me on the street.

[Kev]

11 states that currently allow lottery winners to remain anonymous where a winning ticket was purchased in their state are: Arizona, Delaware, Georgia, Kansas, Maryland, New Jersey, North Dakota, Ohio, South Carolina, Virginia and Texas

It's good to know Georgia is on that list. If I ever won a big jackpot I would be afraid of not only long-lost friends and relatives but of thieves. 

I don't usually play but it's still good to know.

[Hugh]

The biggest US Lotto was $1.586 billion, Powerball, Jan. 13, 2016 3 tickets, from California, Florida and Tennessee. Cash Value $983.5 million
EuroMillion £170 Million.

https://www.ranker.com/list/why-most-lot...han-gibson