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Both Mega Millions and Powerball jackpots are over $ 400 million, and many players are fantasizing about how to spend such a plunge.
They may also want to think about what to do as a winner before the money actually reaches them. That is, you need to make some big decisions before you think about going to the lottery headquarters to claim your winnings.
“This is an extreme wealth,” said Walt Blender, a lawyer and founder of the Blender Law Group. “You really need to get everything in place.”
The Mega Millions jackpot reached an estimated $ 405 million in the Friday night draw, as there were no tickets matching all six numbers drawn on Tuesday. The Powerball Grand Prize is $ 432 million in the Wednesday night draw.
In both games, a single ticket is very unlikely to win the highest award (1/302 million for Mega Millions and 1/292 million for Powerball). ..
Here are three immediate considerations for the winner:
Who to tell
According to experts, it’s best to share the news only with small groups.
“Talk to as few people as possible,” Brenner said. “It means your nuclear family, but don’t tell the kids except to make a vague reference to how changes will occur in your life.”
Also, in some current states, you may be able to protect your identity from the general public. Only a handful of winners are allowed to remain completely anonymous, but they may be able to claim prizes through a trust or limited liability company that does not. I don’t have your name.
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Generally speaking, this means seeking professional help. You need to form a team that includes lawyers, tax accountants, and financial advisers. All of these teams have experience helping lottery winners survive the plunge.
How to receive the prize
You can choose to receive your win as a lump sum cash payment or as a pension for over 30 years. In any case, the money will be taxed when you receive it.
Most lottery winners choose to pay in one lump sum. For the $ 405 million Mega Millions Jackpot, the cash option is $ 294.7 million. Powerball’s $ 432 million award is $ 313.5 million.
Keep in mind that federal income taxes are currently low from a historical point of view — and it is impossible to know where they will be years later. This means that from a tax perspective, it can cost more to receive a pension, as the tax rate is more likely to go up than it goes down.
When to charge
Generally speaking, lottery winners can receive prizes sometime in the months or years, depending on the state. This means you don’t have to rush to headquarters the day after you discover your luck.
Brenner said it will take some time before everything is ready. It involves putting together a team that guides you.
“It will take some time,” he said.
In the meantime, make a copy of your ticket and keep it in a safe place, such as a fireproof lockbox or a bank safe deposit box.
Mega Millions and Powerball jackpots are over $ 400 million
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