Q&A for How to Deal With Winning the Lottery

Return to Full Article

Search
Add New Question
  • Question
    What is the normal fee for a accountant or legal adviser to help set up a trust?
    Community Answer
    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.
  • Question
    If two people win on one ticket, do both people sign the ticket?
    Community Answer
    It depends on your state of residency. In California, for example, only one person can sign the ticket. Check your state lottery web site.
  • Question
    How many weeks after winning before the money is available in my bank?
    Community Answer
    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.
  • Question
    Where do I validate the legitimacy of an accountant or financial planner?
    Donagan
    Top Answerer
    Ask to speak with current or former clients.
  • Question
    How do I collect my money after winning the lottery?
    Donagan
    Top Answerer
    Just tell the lottery where you want the money sent.
  • Question
    What happens after having the ticket validated at a store?
    Community Answer
    You will have to go to your state's lottery office in order to process the claim.
  • Question
    What's kind of fee would an attorney to charge a wealthy lottery winner?
    Donagan
    Top Answerer
    An attorney will likely charge a lottery winner the same fee s/he would charge any other client.
  • Question
    I am over 80 - which is better - the lump sum or an annunity?
    Community Answer
    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.
  • Question
    Is the lawyer's fee separate from a trust fee? If so, how much is a lawyer's fee?
    Donagan
    Top Answerer
    Lawyer's fees are indeed separate from trust fees. Each lawyer sets his/her own fees.
  • Question
    How long does it take to receive my lottery cash?
    Community Answer
    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.
  • Question
    Will taxes be taken out of one thousand dollars?
    Donagan
    Top Answerer
    Yes. All lottery winnings are taxed on a progressive scale.
  • Question
    How much can I give, in cash, at any one time to family members or friends? Is there a limit? Are there more taxes over a certain limit?
    Donagan
    Top Answerer
    There is no limit, but there is a limit on tax-free gifts.
  • Question
    If I enter into a blind trust and have no control over my money, how do I know if the trust manager is doing the right thing and making wise investments?
    Community Answer
    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.
  • Question
    I have 50 partners in the lottery. Will the lottery pay off everyone individually?
    Community Answer
    It depends on the state where you purchased the ticket. Some states do, some states don't.
  • Question
    If I win the lottery and take the payment plan and die, does my family still get the money?
    Community Answer
    Your legal heir will get the money. Most likely, the person will be your wife and/or your children.
  • Question
    What do I do if I was called on the phone and told I won the lottery? Do I need to pay money up front for taxes and should I get an attorney?
    Donagan
    Top Answerer
    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.
  • Question
    What bank can handle a billion dollar deposit?
    Donagan
    Top Answerer
    Almost any bank would be happy to work with you.
  • Question
    The reading states $250,000.00 in each account, so does that mean I can open four or five accounts?
    Community Answer
    You can open four accounts but they have to be zero interest or 10000 dollars will be in interest so choose wisely.
  • Question
    How do I win prizes from the lottery?
    Community Answer
    First of all, you need to buy a ticket. Then, you just need to have luck on your side!
  • Question
    What should I do if I was not paid the full amount of what I won?
    Community Answer
    Go to your state's lottery office and speak with management.
  • Question
    Do other people have to pay taxes on lottery winnings that are gifted to them?
    Donagan
    Top Answerer
    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.
  • Question
    If I gift $1,000,000 to my daughters, will they have to pay taxes on this gift?
    Donagan
    Top Answerer
    They would pay taxes on part of the gift. Consult the taxing authority or an accountant for specifics.
  • Question
    Do I need to continue paying taxes on money I have won in the lottery?
    Donagan
    Top Answerer
    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.
  • Question
    When giving to family or friends who pays the taxes? You or them?
    Community Answer
    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.
  • Question
    Can I insure a lump sum and deposit it into a regular bank while learning to invest?
    Donagan
    Top Answerer
    Yes.
  • Question
    Do I have to report my winnings to the public in West Virginia?
    Donagan
    Top Answerer
    Lottery winnings are always taxable.
  • Question
    How much taxes does the government take?
    Donagan
    Top Answerer
    Lottery winnings are taxed on the same graduated scale that applies to any other income.
  • Question
    Can I get a loan or advance from my lawyer if I have won a large amount of money in the lottery?
    Donagan
    Top Answerer
    You could probably get an advance from just about anybody.
  • Question
    What is the difference between a girt tax and a lottery tax?
    Donagan
    Top Answerer
    From the payer's standpoint, there is no practical difference.
  • Question
    What is the smartest way to invest money after winning the lottery?
    Donagan
    Top Answerer
    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.
Ask a Question

      Return to Full Article