The total for the lottery has rose up to $700 million for Wednesday, August 23rd. What are the chances that a person could win? A wholesome chance of 1 in 292,201,338. So there is a very small chance of winning. But what if you do win? Congratulations! You’re a winner! Now what do you do. You call a lawyer, that’s what you do. I know the first thing you might want to do is take that ticket straight to the lottery office, but hold on. There are folks who will be much more experienced in this situation then you will be. So stop, and call a lawyer, here’s why.
So what is the first thing to do when winning the lottery? Do absolutely nothing, that’s what you should do. A ton of money can make people do crazy things, and can make even the closest family and friends turn against you. So don’t tell anyone, and prepare yourself. One safe thing to do when first discovering your winnings, sign the back of your ticket making it yours. Make sure you save some room above the signature to make room for a possible entity that you will want to put the winnings under. Gather a team around you. Call a lawyer, preferably someone who has absolutely no clue who you are, to protect yourself. Preferably someone who has had experience dealing with large winnings before. Then call a CPA and a financial advisor who will be able to guide you on the right ways to spend your money.
.
So do you take the lump sum, or take annuity payments? It depends on the person, but the best suggestion would be to take the lump sum. In most states, the annuity interest is really not much at all, roughly around 5%, which can be matched with proper investing. But don’t forget, if you take the lump sum, you have to prepare to lose about 50% of the total to taxes. So if you win $500 million, don’t expect to take more than $250 million.
What do you do with the money? There have been many winners who have won a ton of money through the lottery and have been broke not long after. Be careful with the money. Use the team around you to set a plan for the future. Decide exactly how much you want to give to family, and set that in stone with your lawyer so no one can debate what you have decided to give. Also, if you decide to take the lump sum, don’t try to double your money. Vegas was made so the house wins, don’t think you can beat them with your new and innovative schemes. Instead, invest in a low rate treasury bond or a low rate S&P 500 index fund. So if you decide to spend all of your money on boats, houses and cars, you’ll at least have a fall back with your safe investment you made.
In the end, don’t be a showboat, and take careful steps when entrusting others with your money. Hire a lawyer, a CPA, and a financial advisor as your team to guide you through these choppy waters. For all of your legal needs, contact the Law Offices of Nicholas J. Del Pizzo to resolve your legal issues.