Sure, only like, one in a zillion of you might need this information — but what exactly do you do when you win the mega jackpot lottery? Before you run off with your millions of dollars to fill a pool with gold coins so as to swim through it, Scrooge McDuck style, there are some very important things to consider. Why not prepare yourself for your future filthy rich state?
The ever-practical New York Times has got your back, should you ever score that magical, winning ticket. You’ve got to not only protect your money, but your identity and physical person when you’re the newest rich kid on the block.
First of all — what do you do with the ticket? Sign the back, says the NYT, so no one else can claim it if you drop it. Immediately photocopy it and lock it in a safe, or somewhere you know it’s protected.
Then it’s time for a chill pill. Don’t open the floodgates by calling every single person you know, including that boy you loved from first to eighth grade, to let them know your’e the richest person they know. You’ve been a normal person your entire life, pause a few days before you become Lady/Lord Moneybags.
The first person you should tell is a lawyer or financial planner, someone you trust that can help you along the path to riches. And before you go Tweeting about your good luck (#IWinAtLife) and calling the local news station, think twice — it might be better to stay anonymous so as to protect yourself from being bugged by people who just want you for your money. It can be easy to start giving away money to people claiming they need your help.
In some states you can form a trust to manage the money, but some will let your name appear in public records. In other states, you’re actually required to show up and receive that oversized check in front of everyone.
So the big question — is it okay to go on a tiny spending spree? Just the littlest one? Yes — experts say to get it out of your system, but not go totally bonkers at the go-kart store. Everyone will notice if you install a racing track in your backyard and spend your days zooming around in your mink bathrobe, guzzling Dom Perignon.
For more tips and advice regarding taxes, lump sums and more lottery wisdom, check out the source link below. And buy me a pony if you win.
*Thanks for the tip, Howard!
What to Do After You Hit the Mega Millions Jackpot [New York Times]
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First thing to do when winning 500 million: Change my cell number.
My family and I have already agreed that if it ever happens to us that there are VERY few people we would tell.
We don’t need relatives or friends we hadn’t seen in years or that couldn’t give a piss about us suddenly showing up.
Hell, we already have an ex grandmother who we want nothing to do with, we don’t need her suddenly caring.
Winning the lottery is my worst nightmare, hence why I don’t play. Just know that everyone you ever met will think that you should share your winnings with them. If you don’t, they will never speak to you again. If you do share, it will never be enough, ever.
What’s even worse is that if you win a smaller jackpot, say $2 million. You take home about 1/2 after taxes. That’s not enough money to do much with. You could pay off your house, cars, student loans and put the rest back for retirement (maybe 10 years worth, if that) and you would be done. Family and friends probably wouldn’t understand just how little money that is. People hear you won the lotto and they automatically think that makes you rich.
If I won the lottery, I would do my damnedest to make sure no one found out except my spouse. I would just pretend I got a really good job and took some money managing courses to cover for a few extravagances. I would totally lie low. I would also give a ton to charity, probably half.I would find ways to help family and friends if they really needed it, they just wouldn’t know it was me. I am sure that there are ways to do things–like pay off someone’s house through a dummy corp. or something if you wanted to do that for parents or siblings and didn’t want them to know it was you.
Thank you for reminding me that I need to buy a Mega Millions ticket, since it’s over 500 million (541 million to be exact) and that’s really the only time we play (when it goes over a couple hundred million).
Do not tell anyone at all, not family, not friends, etc. You do legally have to tell your spouse. Put said ticket in a safe deposit box at bank, prepay 6 months of box fees. Don’t sign ticket, lots of people say sign ticket right away but see below.
Consult lawyer who specializes in asset protection/tax and estate planning. Determine whether you want to or need to set up a trust, i.e. your trust is going to take possession of lottery monies. In some scenarios it may make sense to take possession of monies via trust, easier for gifting and may help with taxes. This is why you don’t want to sign ticket right away. Also, if your trust takes possession of the monies you may be able to avoid publicity. Develop a plan, if you win a gazillion dollars you might be okay quitting your job, but don’t make any rash decisions. Winning a million or two will not set you up for life, esp after taxes are taken out, do don’t quit your job.
Once you have this all figured out, travel to lottery hq, bring your attorney with you, and claim prize. From state to state the rules differ on publicity but do your best to avoid any and all publicity if at all possible. If you can avoid all publicity, all the better.
Continue not telling people where you new found wealth came from and try to hold off on making any big decisions for 6 mos to a year. If you are planning on quitting your job and living of income from lottery investments it will take some time to make investments and for income to come in and for you to know how much income you’ll have from month to month. Try not to buy big houses and fancy cars b/c the carrying costs are often overlooked and bankrupt many a lottery winner.