Q&A for How to Deal With Winning the Lottery

A trust, depending on how intricate it is, costs about $1500-$2000. However, be sure to talk about fees with the lawyer up front, knowing exactly what it will cost to work with them.

It depends on your state of residency. In California, for example, only one person can sign the ticket. Check your state lottery web site.

It varies, but a jackpot win will typically take 6-8 weeks from claiming to being available to you. In the interim, you should be able to secure a line of credit.

Ask to speak with current or former clients.

Just tell the lottery where you want the money sent.

You will have to go to your state's lottery office in order to process the claim.

An attorney will likely charge a lottery winner the same fee s/he would charge any other client.

The lump sum. As an 80 year old, it is reasonable to assume that you could die soon. A lump sum allows you to enjoy the money while you still can. Moreover, you can also write a will and give the leftover winnings to one of your family members.

Lawyer's fees are indeed separate from trust fees. Each lawyer sets his/her own fees.

Depends, if it's a jackpot it usually takes 6-8 weeks and the normal lottery takes about 3-5 weeks. Then you can claim your cash.

Yes. All lottery winnings are taxed on a progressive scale.

There is no limit, but there is a limit on tax-free gifts.

Steer clear of one-man trust managers. If they mismanage other funds, they may use your money to pay others off, leaving you the loser. Stick with larger organizations with good investment reputations. Learn about their investment strategy, and think about how much risk you're willing to accept. Opting for a large investment company with conservative investment principles may not yield the highest returns but is more likely to protect your core funds.

It depends on the state where you purchased the ticket. Some states do, some states don't.

Your legal heir will get the money. Most likely, the person will be your wife and/or your children.

Lotteries do not notify their winners by phone. Do not send any money to anyone who contacts you by phone. Getting an attorney would probably be a good idea.

Almost any bank would be happy to work with you.

You can open four accounts but they have to be zero interest or 10000 dollars will be in interest so choose wisely.

First of all, you need to buy a ticket. Then, you just need to have luck on your side!

Go to your state's lottery office and speak with management.

People who are given cash gifts from a lottery winner may not have to pay taxes on them. Consult the taxing authority or an accountant.

They would pay taxes on part of the gift. Consult the taxing authority or an accountant for specifics.

Normally, the lottery will withhold taxes on your winnings when they're paid to you. If you take a lump sum payout, your tax obligation would be met in the first year. If you take incremental payments, you would meet your obligations over time.

If you cashed the ticket for your winnings, the taxation money has already been taken out of the winnings. Evidently, you are paying the taxes, not them.

Yes.

Lottery winnings are always taxable.

Lottery winnings are taxed on the same graduated scale that applies to any other income.

You could probably get an advance from just about anybody.

From the payer's standpoint, there is no practical difference.

Invest moderately aggressively, because you're using "free" money. Do some investigating and hire a reputable, fee-based financial advisor who can help you match your investments to your tolerance for risk. In your position, you can consider somewhat-risky investments.