We might not learn much about the lucky player: Ohio allows lottery winners to remain anonymous if their winnings exceed a certain
amount.The last jackpot — a $227 million windfall – was won in September
in Texas.
The latest Mega Millions winner is likely still in shock: The odds of hitting the jackpot are 1 in about 302 million. But things can
quickly go wrong if he or she isn’t careful with that life-changing
amount of money.“The days between the drawing and the day you claim will
be your last days of normalcy,” said Jason Kurland, a partner at Rivkin
Radler, a law firm in Uniondale, New York.
“You want to have a clear head so you can get through a stressful but exciting time,” said Kurland, who specializes in helping lottery
winners.
Here are some tips if you hit the jackpot.
1. Keep quiet
Your first urge might be to share your exciting news with, well, the world. However, the fewer people who know, the better.This is the case
even if you’ll be able to claim your prize anonymously.
“The last thing you need is people asking for handouts, or friends and family offering advice about how to claim the money,” Kurland said.
If you won’t be able to dodge publicity due to state law, consider changing your phone number or living somewhere else temporarily to avoid
media attention and sudden money requests from long-lost friends or
relatives.
“I have a lot of clients plan trips the day their win is announced,” Kurland said. “Those first few days are when the press tries to find
you, but it usually has died down after a week or so.”
2. Protect your ticket
The standard advice from experts is to sign the back of the winning ticket so that if you are separated from it, your signature can help
ensure you still get the prize.
“You want the ticket signed, because whoever signs it is the winner,” Kurland said.However, he said, you should first make sure you
know the rules for claiming your win in the state where you purchased
the ticket. If you bought it in a place that requires the winner’s name
to be announced, you might be able keep your name out of the public eye
anyway by claiming your money via a trust or other legal entity.
“Just be sure you sign the back of the ticket correctly, and do it as soon as possible,” Kurland said.
3. Chill
While you might be eager to claim your winnings, experts say it’s best not to rush over to lottery headquarters the day you discover
you’ve become one of the wealthiest people in the country.Mega Millions
winners get anywhere from three or six months to a year to claim their
prize, depending on where the winning ticket was purchased. Be sure to
take the time you need to prepare to claim your winnings.
That should include assembling a team of experienced professionals: an attorney, financial planner and tax advisor.
4. Consider the bottom line
Jackpot winners get to decide between taking an immediate lump sum or spreading out their winnings over three decades. Either way, the IRS
will take 24% before the money reaches them.
For this $372 million jackpot, the cash option — which most winners go with — is $251.6 million. The 24% federal withholding would reduce
that by $60.4 million to $191.2 million. However, because the top
marginal rate is 37%, the winner should anticipate owing much more at
tax time.
Additionally, state taxes typically are withheld or due, depending on where you live and where the ticket was purchased.“Winners are
surprised by how much is withheld in taxes from the initial payment, and
then how much more is owed when they file their taxes the following
year,” Kurland said.
