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  #1  
Old 03-29-2012, 07:06 PM
LynnM LynnM is offline
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How would a mega-lottery winner remain anonymous?

You win a huge jackpot. You see no advantage to millions of strangers knowing anything about your finances, much less knowing your net worth.

So you go to a lawyer and ask how to remain anonymous. You want the simplest and most effective arrangement.

What's the lawyer tell you? A revocable trust? Are there other options? How does your identity remain hidden? Is the info available only to the IRS?

...just planning ahead here...

[ info will not be misconstrued as legal advice...]
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  #2  
Old 03-29-2012, 07:25 PM
Ravenman Ravenman is offline
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This is what Powerball states:
Quote:
All but five states (DE, KS, MD, ND, OH) have laws that require the lottery to release the name and city of residence to anyone who asks. Other states may offer to assist you in some way, including such things as the creation of trusts. But generally, you will want to hire an attorney to review the laws in your state to see what options you might have.
http://www.powerball.com/pb_contact.asp
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  #3  
Old 03-29-2012, 08:31 PM
Mahaloth Mahaloth is offline
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I thought you had to do the whole "big check publicity thing". Maybe I'm wrong.
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  #4  
Old 03-29-2012, 08:42 PM
hajario hajario is offline
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In California, you are out of luck....at least in relation to keeping your extremely good luck a secret.
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  #5  
Old 03-29-2012, 09:03 PM
md2000 md2000 is offline
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I suppose you could legally change your name and get a makeover and fake tan before the whole "Giant Cheque" thing. Then change your name afterwards...

It's amazing what a few hundred million can do.

Last edited by md2000; 03-29-2012 at 09:04 PM..
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  #6  
Old 03-29-2012, 09:41 PM
Tom Tildrum Tom Tildrum is offline
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I looked into this in anticipation of winning Friday's jackpot, and Virginia law does indeed require that I accept the prize publicly. Inevitably, my wife is going to find out.
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  #7  
Old 03-29-2012, 09:47 PM
Terr Terr is offline
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Quote:
Originally Posted by Ravenman View Post
This is what Powerball states: http://www.powerball.com/pb_contact.asp
"All but five states (DE, KS, MD, ND, OH) have laws that require the lottery to release the name and city of residence to anyone who asks."

Oh goody. I live in the state that doesn't require disclosure.

IANAL - but the lottery ticket is a bearer document. If you engage a lawyer (I should add whom you trust VERY MUCH) and sign the documents that authorize HIM to present the ticket and deposit the lump sum received into a trust that you administer, then the state may disclose the lawyer's name but I am not sure they would be allowed to (or even know) which trust it was.

Last edited by Terr; 03-29-2012 at 09:48 PM..
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  #8  
Old 03-29-2012, 10:13 PM
SpaceDog SpaceDog is offline
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The UK lotto site is blocked at work but I'm fairly sure you can opt out of the publicity -- I think Euro millions is the same.

There's been a few times that you see that the jackpot has been won by someone in town X but there's no name, no big handover, etc.

However, in general I think the organizers release the town name and, maybe, the name of retailer who sold the ticket. If it's a big win the tabloids might send someone down to mooch around -- with that sort of information it might not be difficult to work out who the winner is.

In the US would it be possible to get a lawyer to claim the money on your behalf? Or sell the winning ticket to a wealthy company / bank to avoid the publicity? I guess there's something about tickets being non-transferable but if you could keep it quiet enough -- which would be in everyone's interest ...

Maybe that's where the stories of double lottery winners come from, they don't win the second time someone sells them the ticket to avoid the publicity ...

In any case, you're going to have to cover up suddenly coming into a lot of money. The best way to do this is to wait a while before changing anything (2 months +), then have a cover story for coming into a modest sum of money -- an inheritance is good. You're going to have to resist spending stupid money locally, but you could travel and spend the money abroad.

Or move and reinvent yourself as someone more wealthy.

Or just give all the money away.

SD
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  #9  
Old 03-29-2012, 11:16 PM
Gray Ghost Gray Ghost is offline
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Quote:
Originally Posted by SpaceDog View Post
In the US would it be possible to get a lawyer to claim the money on your behalf?...
Thought it'd be as simple as this. Set up a trust or nesting trusts. Have the trust representative (an exec from a bank/financial services corp.) sign the check and claim the prize on behalf of the trust. Controlling interest in the trust is held by you, or by a foreign corp controlled by you, and you have everyone else sign NDA's with suitably Draconian penalties if they divulge your identity. Give the institution a big bit of the investment business from the prize and everyone's happy.

Consult enough lawyers and accountants until your desired business structure meets regulatory approval.

Be a nice problem to have.

Edit. Oooh. Missed Terr's comment, which is pretty much what I wrote, but much more elegantly.

Last edited by Gray Ghost; 03-29-2012 at 11:17 PM..
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  #10  
Old 03-29-2012, 11:35 PM
SpaceDog SpaceDog is offline
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Ah, I missed Terr's comment too. Sorry about that.

Although thinking about it I wonder if there's a tax implication bouncing the money around like that.

I guess it must have been done by someone somewhere. I can't find any record of someone doing it but there's details of how to do it at ehow.
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  #11  
Old 03-30-2012, 08:42 AM
Tom Tildrum Tom Tildrum is offline
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Originally Posted by Terr View Post
IANAL - but the lottery ticket is a bearer document. If you engage a lawyer (I should add whom you trust VERY MUCH) and sign the documents that authorize HIM to present the ticket and deposit the lump sum received into a trust that you administer, then the state may disclose the lawyer's name but I am not sure they would be allowed to (or even know) which trust it was.
Virginia law specifically provides that a trust cannot claim a lottery prize. It has to be one or more identified individuals.
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  #12  
Old 03-30-2012, 08:49 AM
Terr Terr is offline
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Originally Posted by Tom Tildrum View Post
Virginia law specifically provides that a trust cannot claim a lottery prize. It has to be one or more identified individuals.
As in the lawyer that you hire that transfers it to the trust.
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  #13  
Old 03-30-2012, 08:57 AM
Tom Tildrum Tom Tildrum is offline
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Originally Posted by Terr View Post
As in the lawyer that you hire that transfers it to the trust.
The lawyer is just acting as an agent for the trust, and not individually claiming the prize. If the lawyer did actually claim the prize individually and then transferred it to a trust (set up for someone else's benefit), that transfer would likely be taxable.
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  #14  
Old 03-30-2012, 08:59 AM
Terr Terr is offline
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Originally Posted by Tom Tildrum View Post
The lawyer is just acting as an agent for the trust, and not individually claiming the prize. If the lawyer did actually claim the prize individually and then transferred it to a trust (set up for someone else's benefit), that transfer would likely be taxable.
Sure. But if it is a charitable trust...
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  #15  
Old 03-30-2012, 09:23 AM
friedo friedo is offline
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Originally Posted by Terr View Post
Sure. But if it is a charitable trust...
Then you can forget about buying that new mansion and baker's dozen Ferraris.
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  #16  
Old 03-30-2012, 09:35 AM
brazil84 brazil84 is offline
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I've thought about this (because the fun of buying a lottery ticket is the fantasy of what you would do if you won).

What I would do is just rent an apartment in a doorman building in a big city and use that address to claim the prize. Unless you have a very unusual name or start spending a lot of money very publicly, there's no way that your long-lost friends or family members will know it's you.

The only downside is that you might have to pay some extra taxes, for example New York City resident taxes.

Of course, the IRS will still know.
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  #17  
Old 03-30-2012, 10:14 AM
Gray Ghost Gray Ghost is offline
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Originally Posted by brazil84 View Post
I've thought about this (because the fun of buying a lottery ticket is the fantasy of what you would do if you won).

What I would do is just rent an apartment in a doorman building in a big city and use that address to claim the prize. Unless you have a very unusual name or start spending a lot of money very publicly, there's no way that your long-lost friends or family members will know it's you.

The only downside is that you might have to pay some extra taxes, for example New York City resident taxes...
So, pick a building in a place with no income or special windfall taxes, like Houston.

Your example did make me wonder the following: how does a state in a multi-state lottery like the Mega Millions know that it's able to tax the prize recipient? Does it go by the domicile of the claimant? Where the ticket was sold? Some other test? Could multiple states have a claim?

E.g., a person who works in NYC, lives in CT, buys a Mega Millions ticket on a business trip in TX. Which state gets to tax the person? What if the person does brazil84's tactic of buying a new residence in a low-tax area, and then signs the ticket after the residence sale has completed?
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  #18  
Old 03-30-2012, 10:39 AM
Great Antibob Great Antibob is offline
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Originally Posted by Gray Ghost View Post
E.g., a person who works in NYC, lives in CT, buys a Mega Millions ticket on a business trip in TX. Which state gets to tax the person? What if the person does brazil84's tactic of buying a new residence in a low-tax area, and then signs the ticket after the residence sale has completed?
At least in Texas, you have to claim large prizes in person. So, any intermediaries would have to come to Texas.

That, of course, opens things up to some messy situations where you might be taxed in the state you bought the ticket and also the state in which you reside. I'm not absolutely sure, but I would guess it works the same way as working in a low tax state but residing in a higher tax state.

If you live in CT, there's no reason NY gets any of it, if you bought in Texas. But CT can still collect income taxes. I believe (not absolutely sure) you can take a deduction or credit for any income taxes Texas collects (which is $0) but you're still on the hook for the rest.

As for the residence dodge, I'm not sure. You'd probably want to hire an attorney, and I'm not sure any CT tax authorities are going to buy any excuses if you're still working in New York but trying to claim Texas residency.

Last edited by Great Antibob; 03-30-2012 at 10:41 AM..
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  #19  
Old 03-30-2012, 11:01 AM
joebuck20 joebuck20 is offline
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Can you just get a P.O. Box in some far flung town and use that as your official address?

Last edited by joebuck20; 03-30-2012 at 11:01 AM..
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  #20  
Old 03-30-2012, 12:20 PM
Clothahump Clothahump is offline
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HAH!

We are at this moment having a bull session at work about how we would spend the money. One of the guys wants to have a throne on his front porch; he'll sit on it for three hours a day and hear begging supplications from the peasants after his picture is shown accepting a ~$600 million check.
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  #21  
Old 03-30-2012, 12:37 PM
Great Antibob Great Antibob is offline
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Originally Posted by joebuck20 View Post
Can you just get a P.O. Box in some far flung town and use that as your official address?
Maybe. But your current information is already pretty much already out there. I'm guessing it wouldn't take long for some people to figure out where you actually live.

If you planned ahead a few years, I could see it working, but getting a PO Box after winning the lottery won't change your existing entry in the phone book or any cached web pages or any databases of public information any company has collected.
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  #22  
Old 03-30-2012, 12:55 PM
joebuck20 joebuck20 is offline
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Originally Posted by Great Antibob View Post
Maybe. But your current information is already pretty much already out there. I'm guessing it wouldn't take long for some people to figure out where you actually live.

If you planned ahead a few years, I could see it working, but getting a PO Box after winning the lottery won't change your existing entry in the phone book or any cached web pages or any databases of public information any company has collected.
Yeah, that information about your real address will still be out there. But if you get a P.O. Box in Shelbyville, the lottery will put out a press release saying Joe Buck of Shelbyville won the jackpot, instead of Joe Buck of Springfield where you actually live. After all they're not putting out your Social Security number or any other information that would indicate Joe Buck of Shelbyville and the Joe Buck of Springfield are one and the same.

Of course, if they're making you attend the press conference and putting your picture in the papers and on TV, that might not help you much, but it'd still be one way of deflecting at least some of the scammers and leeches who might otherwise come darkening your door.

Last edited by joebuck20; 03-30-2012 at 12:56 PM..
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  #23  
Old 03-30-2012, 01:31 PM
Any Other Name Any Other Name is offline
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Back in January, a $16 million jackpot went unpaid past the deadline for claiming the prize. A lawyer tried to claim it, representing a trust in Belize. Lotto officials refused to pay without details on who purchased the winning ticket. The deadline for claiming the prize passed with the lawyer refusing to state how he got the ticket and refusing to name his client. The Iowa attorney general has launched a criminal probe.

Iowa Lotto Jackpot goes unpaid.
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  #24  
Old 03-30-2012, 01:37 PM
Bridget Burke Bridget Burke is offline
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Worried about the leeches coming to your door? Hire some minions to answer the door. And screen your phone calls.

Or move after winning--to a place with better security....
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  #25  
Old 03-30-2012, 01:41 PM
BubbaDog BubbaDog is offline
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Quote:
Originally Posted by Clothahump View Post
HAH!

We are at this moment having a bull session at work about how we would spend the money. One of the guys wants to have a throne on his front porch; he'll sit on it for three hours a day and hear begging supplications from the peasants after his picture is shown accepting a ~$600 million check.
I had planned to take the opposite approach. At the big check function I would say often and loudly the following statement. My soundbite will be -

Something like " Shout an appeal - kill the deal "

My explanation to the reporters will be -

"I will be charitable and will invest my winnings, but there is one steadfast rule that I will follow unwaveringly -

I WILL NOT GIVE MONEY TO ANYONE WHO ASKS ME FOR IT!

Any disbursement of my funds will originate with my advisory team that is also instructed to disqualify any requests for funds they receive."

So friends, relatives, strangers, charities may still benefit from my good fortune but they better stay out of my face or they will be eliminated from eligibility.
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  #26  
Old 03-30-2012, 09:21 PM
amarone amarone is online now
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Originally Posted by Gray Ghost View Post
Your example did make me wonder the following: how does a state in a multi-state lottery like the Mega Millions know that it's able to tax the prize recipient? Does it go by the domicile of the claimant? Where the ticket was sold? Some other test? Could multiple states have a claim?
According to my local paper (The Atlanta Journal Constitution), tax is owed to the state where the ticket was purchased.
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  #27  
Old 03-31-2012, 07:40 AM
bizerta bizerta is offline
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If the winner remained anonymous ... How do you know there really was a winner? Maybe the state employees split the money and "pretended" that the winner was anonymous.

In other words, the requirement to disclose the names of winners confirms the fact that there are, indeed, winners.
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  #28  
Old 03-31-2012, 07:51 AM
LynnM LynnM is offline
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Originally Posted by bizerta View Post
If the winner remained anonymous ... How do you know there really was a winner? Maybe the state employees split the money and "pretended" that the winner was anonymous.

In other words, the requirement to disclose the names of winners confirms the fact that there are, indeed, winners.
Re my original post: I didn't mean to conceal the fact there was a winner; I mean to keep the winner's identity private.

I've learned that state laws vary, but in most states, a likely technique would be to form a blind trust, which is revocable. The trust's attorney would then present the winning ticket, with the winnings going into the blind trust. Info about the blind trust is not public information.

In a few states, the "real" winner's identity might have to be disclosed only to a state official(s) who must check whether the "real" winner owes child support or something, but other than that, privacy can be maintained.
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  #29  
Old 03-31-2012, 09:04 AM
bizerta bizerta is offline
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Originally Posted by LynnM View Post
Re my original post: I didn't mean to conceal the fact there was a winner; I mean to keep the winner's identity private. ...
I understand that, but without knowing who the winner was, how do you know there really was a winner?

Last edited by bizerta; 03-31-2012 at 09:08 AM..
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  #30  
Old 03-31-2012, 09:27 AM
LynnM LynnM is offline
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Originally Posted by bizerta View Post
I understand that, but without knowing who the winner was, how do you know there really was a winner?
Per established lottery procedure/law: In the blind trust example, the attorney presents the winning ticket to state lottery authorities. They examine and validate the ticket.

In addition, every lottery ticket sold can be identified as to numbers played; the specific machine that issued the ticket; and date/time ticket was sold.

In other words, the existence of a winning ticket proves there was a winner. Right?
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  #31  
Old 03-31-2012, 10:36 AM
hajario hajario is offline
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Originally Posted by LynnM View Post
Per established lottery procedure/law: In the blind trust example, the attorney presents the winning ticket to state lottery authorities. They examine and validate the ticket.

In addition, every lottery ticket sold can be identified as to numbers played; the specific machine that issued the ticket; and date/time ticket was sold.

In other words, the existence of a winning ticket proves there was a winner. Right?
You can't do this in most of the Mega Millions states no matter how much you wish this was true. The actual owner(s) of the ticket need to claim it. No proxies or trusts are allowed to be a claimant.
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  #32  
Old 03-31-2012, 11:10 AM
LynnM LynnM is offline
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Originally Posted by hajario View Post
You can't do this in most of the Mega Millions states no matter how much you wish this was true. The actual owner(s) of the ticket need to claim it. No proxies or trusts are allowed to be a claimant.
Maybe I should have stated explicitly what I had assumed was obvious: Lottery laws vary by state and if a state does not allow individual anonymity, then it would not be possible. Right?

http://articles.chicagotribune.com/2...ottery-jackpot
After buying the winning ticket at a gas station in Tinley Park in June, the couple contacted Agnew and created a limited liability company, or LLC. About a month after the winning numbers were announced, the prize was awarded to Spring River LLC, allowing the couple to collect their winnings while keeping their names private.

The couple are the first winners in the lottery's history to claim a prize as an LLC, but they are among about 20 percent of the $1 million-plus prize winners in Illinois who form a legal entity to claim their money. The extra step can allow winners to keep their riches out of the spotlight or create tax benefits, said Lisa Crites, legal assistant with the state lottery.
xxx
http://www.lotterypost.com/news/194766
The owner of a winning Mega Millions ticket claimed their prize Friday.

But the identity of the winner won't be made public after two attorneys claimed the prize on behalf of a blind trust which Ohio law allows.

Chillicothe attorney Deborah Barrington and Columbus attorney Ronald Rowland, cotrustees of The Ross County Beneficiary Trust, claimed the $75.6 million prize for the winner at the Ohio Lottery's offices in Cleveland.
xxx
http://www.lotterypost.com/news/177222
The $196 million lottery prize for a Mega Millions ticket sold in the Clermont County village of Amelia in May was claimed Friday by a lawyer on behalf of an undisclosed client.

The ticket was submitted for The Anthony Trust, said a spokeswoman for the Ohio Lottery.

The name of the winner is known to Ohio officials, who will check for possible unpaid child support or unpaid state taxes, said Ohio Lottery spokeswoman Marie Kilbane.

An exception to the Ohio Public Records Act means state officials don't have to reveal the identity of the winner if a so-called blind trust is created, Kilbane said.

"Not every state has it," Kilbane said of a procedure for setting up such a trust for lottery winners. "Here in Ohio, it's a way that players can keep their anonymity. It's typically only done for extremely high prize winnings."
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  #33  
Old 03-31-2012, 11:40 AM
LynnM LynnM is offline
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Addendum--of some relevance:

http://abcnews.go.com/Business/mega-...ry?id=16040303
[...]
Three lucky ticket holders in Maryland, Illinois and Kansas will share a $640 million prize, the largest lottery jackpot in U.S. history.

The three tickets matched all five numbers including the megaball number.

Friday's winning numbers were: 2, 4, 23, 38, 46, and megaball 23.

Before taxes, lottery officials said each winning jackpot ticket was expected to be worth more than $213 million.

The Maryland lottery reported a winning ticket was sold in Baltimore County.

The ticket was purchased at a 7-11 store in Milford, Md. The identity of the winner is still unknown. In Maryland, lottery winners have the option to remain anonymous.

Last edited by LynnM; 03-31-2012 at 11:42 AM..
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  #34  
Old 03-31-2012, 03:51 PM
bizerta bizerta is offline
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Originally Posted by LynnM View Post
In other words, the existence of a winning ticket proves there was a winner. Right?
No. Do you believe everything every government employee tells you?

Full disclosure doesn't prevent fraud; it just makes it easier to detect.
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  #35  
Old 03-31-2012, 06:17 PM
LynnM LynnM is offline
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No. Do you believe everything every government employee tells you?

Full disclosure doesn't prevent fraud; it just makes it easier to detect.
When they go public, contact the recent Mega winners. And if the Maryland and Illinois winners use a trust to claim their prizes, contact the trust's attorneys and express your doubts to them. I'm sure they'd love to talk to you.

In the meantime, maybe you should....talk to someone else about this?
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  #36  
Old 04-01-2012, 12:14 PM
jtgain jtgain is offline
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According to my local paper (The Atlanta Journal Constitution), tax is owed to the state where the ticket was purchased.
That presents an interesting jurisdictional question. I live in WV, but only six miles from the PA border. If I drove to PA and purchased a winning ticket, how in the hell would PA have jurisdiction to tax my winnings? I bought the ticket there, but it didn't have the value until the numbers were drawn. And at that time (if I won) I would have been sitting in WV. I would contend that the income from that ticket was realized entirely within the state of WV, no matter where I bought the ticket.

I'm sure that a tax lawyer can tell me why I'm wrong and why 14 different states could make me pay taxes on that money, but I think that a state that you aren't physically present in when the numbers are drawn could have no claim to taxes on those winnings.
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  #37  
Old 04-01-2012, 12:27 PM
hajario hajario is offline
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I'm sure that a tax lawyer can tell me why I'm wrong and why 14 different states could make me pay taxes on that money, but I think that a state that you aren't physically present in when the numbers are drawn could have no claim to taxes on those winnings.
What if the rules for MegaMillions state that you pay taxes (if necessary) in the State where you bought the ticket?
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  #38  
Old 04-01-2012, 12:32 PM
jtgain jtgain is offline
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What if the rules for MegaMillions state that you pay taxes (if necessary) in the State where you bought the ticket?
I would claim that those terms are unconscionable. Unless, perhaps, I only have to pay in the one state and not both.
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  #39  
Old 04-01-2012, 12:34 PM
hajario hajario is offline
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I would claim that those terms are unconscionable. Unless, perhaps, I only have to pay in the one state and not both.
I can't imagine that you would have to pay in more than one state. It must be one or the other. I know that CA doesn't tax lottery winnings at all.
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  #40  
Old 04-01-2012, 12:41 PM
jtgain jtgain is offline
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I can't imagine that you would have to pay in more than one state. It must be one or the other. I know that CA doesn't tax lottery winnings at all.
It seems like if that were the case, then a person could make a good business buying lottery tickets in a state like CA and mailing them to residents of other states that tax lottery winnings.

If the terms state that you pay income tax in the state where the ticket was purchased, and no other state, then we could all buy tax-free (state tax) tickets.
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  #41  
Old 04-01-2012, 01:10 PM
hajario hajario is offline
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It seems like if that were the case, then a person could make a good business buying lottery tickets in a state like CA and mailing them to residents of other states that tax lottery winnings.
What kind of premium do you think that people would pay for such a service?
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  #42  
Old 04-01-2012, 02:52 PM
bizerta bizerta is offline
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... If the terms state that you pay income tax in the state where the ticket was purchased, and no other state, then we could all buy tax-free (state tax) tickets.
It doesn't work that way. The general rule of taxation is: If one lives in one jurisdiction (e.g. Ohio), but earns money in another jurisdiction (e.g. Iowa) goes as follows: The total tax paid is the higher of the two jurisdictions. Tax is paid to the jurisdiction where the money is earned first. If IA tax is higher than OH tax, then no tax is due in OH. Otherwise, the higher OH tax is collected, but credit is given to the IA tax already paid.

So if CA doesn't tax lottery winnings but your home state does, you still have to pay your home state.

Even though Canada doesn't tax lottery winnings, if you live in the USA and win an Ontario lottery, you have to pay the difference, which means that USA and your home state get to tax it all.

Last edited by bizerta; 04-01-2012 at 02:53 PM..
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  #43  
Old 04-01-2012, 02:56 PM
jtgain jtgain is offline
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Originally Posted by bizerta View Post
It doesn't work that way. The general rule of taxation is: If one lives in one jurisdiction (e.g. Ohio), but earns money in another jurisdiction (e.g. Iowa) goes as follows: The total tax paid is the higher of the two jurisdictions. Tax is paid to the jurisdiction where the money is earned first. If IA tax is higher than OH tax, then no tax is due in OH. Otherwise, the higher OH tax is collected, but credit is given to the IA tax already paid.

So if CA doesn't tax lottery winnings but your home state does, you still have to pay your home state.

Even though Canada doesn't tax lottery winnings, if you live in the USA and win an Ontario lottery, you have to pay the difference, which means that USA and your home state get to tax it all.
But say I bought the ticket in Iowa. Did I "earn" the money there? I would contend that the ticket I bought had no value until the winning numbers came back. And when those numbers came back I was not in Iowa.
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Old 04-01-2012, 03:01 PM
hajario hajario is offline
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Quote:
Originally Posted by jtgain View Post
But say I bought the ticket in Iowa. Did I "earn" the money there? I would contend that the ticket I bought had no value until the winning numbers came back. And when those numbers came back I was not in Iowa.
Guess: Lottery winnings aren't earned income. It's gambling income which is treated differently. You get a 1099G for gambling money.
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Old 04-01-2012, 06:08 PM
bizerta bizerta is offline
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Originally Posted by jtgain View Post
But say I bought the ticket in Iowa. Did I "earn" the money there? I would contend that the ticket I bought had no value until the winning numbers came back. And when those numbers came back I was not in Iowa.
I don't know for sure, but my hunch is that you would still owe Iowa tax. The winnings probably can only be claimed in Iowa. Hence, the ticket has no value in your home state.
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Old 04-01-2012, 06:22 PM
Sunspace Sunspace is offline
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So, these people who set up limited-liability corporations and blind trusts and all that... doesn't that cost money too? Money that you'd have to have before you presented the winning ticket to be redeemed?

Would the lawyers and accountants essentially work for free, knowing that they'd eventually be paid from the winnings claimed by the corporation or trust? Would the buyer of the winning ticket just walk into their office and say, "Here's the winning ticket for last nights Mega Umpty Trillions lottery. Can you do this work for me?"
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Old 04-01-2012, 06:57 PM
Great Antibob Great Antibob is offline
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Originally Posted by jtgain View Post
But say I bought the ticket in Iowa. Did I "earn" the money there? I would contend that the ticket I bought had no value until the winning numbers came back. And when those numbers came back I was not in Iowa.
The answer is given in the terms of the lottery. The rules of the lottery (publicly available before you buy the ticket and also printed on the back of the ticket) state in no uncertain terms that you owe taxes on lottery winnings in the state you purchased the ticket.

There's also usually a requirement that winnings are collected in person. That could potentially be used (not that it's necessary) to argue that you didn't really "earn" anything until you collected within the state, making you subject to that state's taxes.
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Old 04-01-2012, 08:43 PM
hajario hajario is offline
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Originally Posted by Sunspace View Post
So, these people who set up limited-liability corporations and blind trusts and all that... doesn't that cost money too? Money that you'd have to have before you presented the winning ticket to be redeemed?

Would the lawyers and accountants essentially work for free, knowing that they'd eventually be paid from the winnings claimed by the corporation or trust? Would the buyer of the winning ticket just walk into their office and say, "Here's the winning ticket for last nights Mega Umpty Trillions lottery. Can you do this work for me?"
I imagine it's like most interactions with a lawyer. They'd do the work and send a bill.
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Old 04-10-2012, 08:42 AM
joebuck20 joebuck20 is offline
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It looks someone has come forward in Maryland, one of the few states that allows you to claim your winning anonymously:

http://www.cnn.com/2012/04/09/us/mar...ner/index.html

The story notes that "no winners" will be at the press conference.

Quote:
The holder of one of three winning tickets in a record $656 million Mega Millions drawing has come forward to claim a share, Maryland Lottery officials said Monday.

They scheduled a news conference for Tuesday morning, at which "no winners will be present," said Carole Everett, a spokeswoman for the Maryland Lottery. When asked whether there was more than one winner, she responded: "Perhaps."
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  #50  
Old 04-10-2012, 08:51 AM
hajario hajario is offline
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Three public school employees will split the MD jackpot. They will remain anonymous.
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