Powerball – COOPER GENERAL NEWS

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There is a chance that at least a few people in 2020 will be far richer than most of us.

With no ticket matching all six numbers drawn in Mega Millions on Tuesday, the jackpot for the Friday night drawing rose to $ 401 million. Powerball’s grand prize is not far behind at $ 363 million for the Wednesday night draw.

If you’re lucky enough to be the next big winner, experts say that part of protecting your windfall is protecting your identity when you can.

“Four hundred million dollars would attract a lot [attention]”said Attorney Kurt Panouses, founder of the Panouses Law Group in Indialantic, Florida and an expert in helping lottery winners.

Keeping your win calm will protect you from strangers and scammers who want a part of the prize.

However, states don’t always make data protection easy: only a handful allow winners to remain completely anonymous. In other cases, you may be able to claim the award through a trust or limited liability company or LLC that does not have your name on it. However, you need to plan for this.

Here are tips for big lottery winners trying to protect their privacy.

Handling your ticket

The standard advice is to sign the back of your ticket. However, if you find yourself in a state where a trust or LLC can claim the prize, hold back with this signature if privacy is important to you.

“Of course you want to protect the ticket, but whatever name is on the back of the ticket is identified as the payee,” said Panouses. “The back of the ticket is important for data protection reasons.”

In most states, he said, if you use an LLC or trust to claim the money, you can bypass disclosing your name.

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Panousas said he has also created trusts whose beneficiaries are sub-trusts instead of the winners. This adds an extra layer of data protection.

stay calm

While you might want to share your exciting news, experts say the fewer people know, the better.

“Keep the circle of people who don’t know or tell anyone about it,” said Panouses.

For example, if you are claiming the profit in conjunction with other family members, i.e. through a trust or LLC as a joint prize, then all parties involved should sign non-disclosure agreements, Panouses said.

Money management

In addition to choosing experienced professionals to help you tackle the windfall, it may also be wise to avoid the professionals in your hometown if you are concerned about the news that your profits will be lost.

“Someone in this office might say, ‘Oh, this is the lottery winner,'” Panouses said. He relies on a large investment and trust company that has a proven record of serving wealthy households.

“If I open accounts with them, I know the information won’t be made public,” said Panouses.

Plan an escape

Skipping town a bit after claiming your prize is probably a good idea.

“We make sure the winners have a plan to go somewhere for a week or so after they claim,” Panouses said. “When people find out you won, they may show up at your home.”

It’s also worth changing the cell phone number, he said. If you have a landline, this should also be changed.

You may also want to close your social media accounts if you cannot remain anonymous.

Annuity or lump sum?

You can choose to take your winnings either as a lump sum or as a 30 year pension. The Mega Millions jackpot of $ 376 million has a cash option of $ 287.4 million. For the $ 341 Powerball prize, that amount is $ 262.5 million.

Experts usually recommend getting the money all at once – which is what most winners do.

“The flat rate distribution would be the preference,” said Boneparth. “When you do that, you have more control over the money.”

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However, he added a caveat.

“If you are not disciplined or are afraid of how to invest with support, retirement may be a better option,” said Boneparth.

The tax hit

Before the money reaches you, 24% is withheld for federal taxes. For Mega Millions’ $ 287.4 million cash option, that would mean $ 69 million off the top and you get $ 218.4 million. For the Powerball flat fee of $ 262.5 million, withholding tax would be $ 63 million, leaving $ 199.5 million.

But that’s not all. The highest marginal rate of 37% applies to income above $ 518,400 for individual taxpayers ($ 622,050 for married couples filing together), which means much more would be due at tax time. And state taxes can be withheld or due.

“If you factor in city, state, and town taxes in some places, you might look into this [close to] 50% goes to taxes, “said Boneparth.

There may be strategies in place to reduce your tax payments. That is why it is important to have a tax advisor on your team.

Other things

If you can’t claim your prize anonymously – it depends on the state – you can skip town for a while. Unwanted attention can come from both the public and the extended family.

“Your fifth uncle, once removed, could reach you,” said Boneparth. “Find a comfortable place and go away.”

If you want to share some of the money with family or friends, plan for these gifts in advance, said Boneparth.

“You want to avoid getting hit repeatedly,” he said. “You can set expectations in advance. Then planning really comes into play.”