Lottery Questions

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Latest post Fri, Nov 19 2010 10:59 AM by reedlamont. 7 replies.
  • Sun, Oct 17 2010 11:15 AM

    • Hersh
      Consumer
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    Lottery Questions

    I'm a resident of Georgia and would like legal advice on the best way to collect a  lottery jackpot. I plan to hire a tax professional (CPA), tax attorney and a financial advisor.

    My goals are to collect the prize anonymously and retain control of my money/assets/investments after I collect.

    I've read that a blind trust is the best way to collect a lottery prize, as it affords the winner the right to remain anonymous with the lottery commission and in the press. However, I'm wary of this strategy, as I'd lose visibility into the investments the trustee was making on my behalf. I'd like to retain control and visibility over my assets.

    QUESTIONS:

    (1) Is a blind trust to collect a lottery jackpot ALLOWED in the state of Georgia?

    (2) is a blind trust the best strategy to collect a large lottery jackpot for a GA resident?

    (3) if the best strategy is a blind trust, how do I avoid/mitigate losing control/visibility of my assets. Can I set up the trust to exist for a set period of time, dissolve the trust and move my assets to either another trust, or simply into various bank accounts? Is there another solution I don't know about? (LLC, other type of trust, etc.?)

    Thank you in advance.

  • Sun, Oct 17 2010 3:04 PM In reply to

    Re: Lottery Questions

    The first thing you have to get past is that, when you buy a lottery ticket, it says on the ticket or in the lottery rules referred to on the ticket, that you give up your right to remain anonymous and agree to provide your name and likeness to the lottery comission for publicity purposes.

    Please verify that before discussing questions that might turn out to be irrelevant.

     

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • Mon, Oct 18 2010 11:59 AM In reply to

    • Drew
      Consumer
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    • Joined on Thu, Mar 30 2000
    • PA
    • Posts 49,653

    Re: Lottery Questions

    I'm not sure why all the fuss to avoid your name being disclosed.

     

    Do youhave any existing bills or creditors or an EX in the woodwork?



  • Mon, Oct 18 2010 12:45 PM In reply to

    Re: Lottery Questions

    "(1) Is a blind trust to collect a lottery jackpot ALLOWED in the state of Georgia?"

    Yes.  Jack is incorrect on this one:  the ticket does say that by signing you give permission for the lottery to use your image and name.  However it does not require that you do so.  There have been other lottery winners in Georgia who have claimed via trust or an attorney.

    "(2) is a blind trust the best strategy to collect a large lottery jackpot for a GA resident? "

    You need a competent tax advisor and financial advisor to look at how much money and your other debts and assets to determine this.

    The lottery winners who have the best long term outcomes are the ones who do not claim the money until they have consulted with several financial advisors and have a clear cut plan in place for the money.  You cannot consult just any old advisor however.  Seek out firms that typically deal with high dollar amounts and wealthy clients.

    "That's just my opinion, then again I might be wrong."  Dennis Miller

     

  • Mon, Oct 18 2010 2:01 PM In reply to

    Re: Lottery Questions

    ClydesMom:
    Jack is incorrect on this one

    Yes, but I wanted that verified before spending time on the other questions. Nice having a Georgia peach on board to keep me on the right track.

    ClydesMom:

    You need a competent tax advisor and financial advisor to look at how much money and your other debts and assets to determine this.

    Amen to that.

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • Mon, Oct 18 2010 3:50 PM In reply to

    • Ford
      Lawyer
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    • Joined on Thu, Mar 16 2000
    • Posts 12,797

    Re: Lottery Questions

    I'm 12 and I'm home sick from school today...

    • I plan to hire a tax professional (CPA), tax attorney and a financial advisor.

    Then you probably should do that so the advice you get is covered by the fiduciary's ethical obligations, legal duties, and insurance.  Getting advice off the Internet in this case might be penny-wise, but clearly pound-foolish.

  • Fri, Oct 22 2010 3:50 PM In reply to

    • Hersh
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    • Joined on Sun, Oct 17 2010
    • IL
    • Posts 2

    Re: Lottery Questions

    Thank you everyone for your replies!

  • Fri, Nov 19 2010 10:59 AM In reply to

    • reedlamont
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    • Joined on Mon, May 11 2009
    • TN
    • Posts 1

    Re: Lottery Questions

    The customary approach would be to establish two (2) trusts.  The first trust would be, with the grantor's/winner's name (e.g., your name) disclosed on the face of the trust agreement.  However, when a lottery claim is made by a "blind trustee", it is not unusual for the lottery commission involved to require the trustee/claimant (who is the "agent" for the "undisclosed/anonymous" actual winner) to provide a copy of the trust agreement "under which" the claim is being made.

          You do not want the "real" winner's name to show on the trust agreement presented to the lottery commission as documentation with the "blind trustee's" claim, I add provisions to the first trust agreement that direct the "blind trustee" to establish a second trust for the sole purpose of pursuing and collecting the lottery prize anonymously.  Thus, the second trust agreement identifies the "agent" (usually, the same trustee as under the "first trust") as the "grantor" and "trustee", stipulating that the grantor has established the trust for the specific purpose of claiming the prize on behalf of an undisclosed Beneficiary or Beneficiaries (who are identified in the "first trust" but not under the "second/blind trust").
    Also You just need to add a stipulation/direction that reserves to you, personally, the right to direct when/how/where the funds are to be transferred to your account by the trustee.  The actual "account details" need not be spelled out in the trust (but should be spelled out in a separate, written direction from you to the trustee.

    You can name the second trust anything you want to just so it's not your name.  As soon as the winnings are collected, the second trust will distribute the winning to the first trust and the second trust will terminate.

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