MAJOR Lottery winners -to stay anonymous - what's the deal with this? State pockets winnings?

As long as I can remember winning the lottery, no matter how much it was, was often considered a curse because it often meant that distant cousins, relatives, old neighbors, old school bus mates, etc would come out of the wood work starting to ask for some money. well that was just part of the deal of winning the lottery and things you had to deal with. My state just had it's largest lottery winning of over 1/2 billion dollars and the winner waited a long time to claim it b/c they were trying to remain anonymous. Well it seems that this isn't always an option for lottery winners but for some they make acceptions. This seems a little odd to me.

I had a post earlier that I thought there was something fishy about all the state lotteries and now I see it as even more questionable. How do we know anyone ever won the lottery and the state isn't just pocketing the money saying they are keeping it in an anonymous trust for the "secret" winner. This has started to happen more and more over the years with states with powerball lotteries.

I can think of no better way to pocket large sums of money for illicit state use than by manipulating the state lottery system in a way that a specific winner is picked (either a ticket bought by a state agent) or a ticket not purchased, but since the registers are all networked to the lottery system, they can input the same of a ticket into whatever register they want and then claim that the winner wants to remain anonymous in the "trust" program.

Before, the lottery was all up front and totally open. The drawings & selling of the tickets, there were records in triplicates + the copy of the ticket the buyer had. Now the buyer gets a ticket (printed on paper that fades with heat until it is unreadable) and the records of sales are all on the sales register, the program which is controlled by the state lottery, so all records are accessibly by the state and I'm sure they can be manipulated by them as well.

Yeah, I'm sure people are going to say "they could never do that" and to those people, I just ask you how dumb can you be to trust your government so much?

Were I to win a huge amount lottery, I would first have my son and daughter meet me at a specified place unknown to anybody but myself. I would take a taxi to the lottery facility to claim my prize winning, leave outside with police protection/escort to a waiting helicopter and take off. Then meet up with another taxi many miles away,to take me to my car. I would then meet up with my kids.

We would have to start new lives much like the 'witness protection' procedure, but I would risk it.

a reply to: DigginFoTroof

There is no conspiracy here; the lady in question actually had to sue to obtain the right to remain anonymous. There are only 6 states who do actually allow you to remain anonymous without having to go to court (Maryland, Delaware, Kansas, North Dakota, Ohio and South Carolina), and as you can see New Hampshire isn't one of those states.

More to the point though ... you'd be far better off putting your lottery money into a savings account or adding it to your 401k (if you're in the US).

Oh and those relatives or friends who have never contacted me in decades..... carry-on . I have a couple friends I would go visit and set them up retired and ready for a life of leisure.

Easier ways to remain anonymous...Form a Trust or Estate, hire an attorney to represent said trust and have him/her collect funds on behalf of the trust.

You as the sole controllers of the trust can then access the funds how you like as long as they are within the guidelines of the trust you created.

Oh and if you choose this option make sure to sign and address the back of the ticket with the trust name and address. If you sign you name then you have to collect it.

originally posted by: GuidedKill
Easier ways to remain anonymous...Form a Trust or Estate, hire an attorney to represent said trust and have him/her collect funds on behalf of the trust.

You as the sole controllers of the trust can then access the funds how you like as long as they are within the guidelines of the trust you created.

Oh and if you choose this option make sure to sign and address the back of the ticket with the trust name and address. If you sign you name then you have to collect it.

That's actually what Ms. New Hampshire did, but she made the mistake of signing the back of the ticket first and the State wouldn't allow her to white-out the rep name. So, she sued (and won).

originally posted by: DigginFoTroof
Yeah, I'm sure people are going to say "they could never do that" and to those people, I just ask you how dumb can you be to trust your government so much?

The implication that someone is dumb for not believing that the government would hijack lottery winnings for the hell of it is a rather weak argument.

Some study claiming 70% of lottery winners wind up bankrupt. The key issue is that when friends and family find out, the asking for money never stops - just ask any pro-athlete or anyone for that matter who has been financially successful.

Why do 70% of lottery winners go broke

I do think winners should be able to remain anonymous. There have been a few murder cases involving lotto winners. Of course, even if lottery winners can remain anonymous, my gut tells me some of them are too stupid to do so. I mean, how can you drive around in luxury cars and buy a big house when a few weeks ago you didn't have a pot to piss in unless you won the lotto? Any anonymity will be ruined by the winner's desire to show off luxury purchases.

Smart winners would continue to live low key, but not have to worry about working. I'd set up a trust and have it distribute a decent income every year that I would live off while the principle continues to gain interest/dividends. Fortunately, wife and I already aren't extremely social and already somewhat successful, so we could probably continue our current lives without raising an eyebrow.

However, if someone is living in the hood and comes into a big windfall, the first thing they need to do is move somewhere else with little connection to their old lives. They also probably need to take classes and educate themselves on how the "other half" lives in regards to cultural norms. This is the main reason folks go broke. They don't really understand how really rich people live. They only see the fakers on TV living off debt or other extremes.

a reply to: DigginFoTroof

It's not just about old friends bugging you for money. People have been murdered. Relatives have been kidnapped. Corrupt lawyers hire people to sue for frivolous reasons. There are many, many reasons why winning the lottery is extremely dangerous.

If you win, first thing you do is hire an honest lawyer (if there is such a thing). Do NOT sign the ticket before doing so. Then you open an LLC, and put the money there. Of course that does not make you totally safe, but it helps.

The woman in the OP signed the ticket before talking to an attorney, so she was stuck claiming the money without an LLC. That's why she had to sue to remain anonymous.

a reply to: DigginFoTroof

You bet the states make money off the lottery, loads of it! They wouldn't do it if they didn't. They don't even have to keep the winnings to make obscene amounts of money. State lotteries are a sham.

Surely you don't think that if (10) people buy $1 tickets each that the jackpot is $10, right? And, by law, lottery commissions are required to disclose how that money is used. You'd be stunned at all the payola going on (if you know what to look for). Everybody gets a cut (salaries, "administrative" and "legal" fees, "marketing" fees, you name it). It's padded down like crazy.

Most states sold the lottery to the people as a mechanism to help the schools, parks and public works projects, but when you look at how much money gets diverted before the bottom line you'd be shocked.

And we haven't even started talking about the unclaimed winnings yet! The notion the lottery is a good thing is kind of crazy.

The lottery should be renamed...it should be called a "voluntary TAX" because that's all it is.

originally posted by: Flyingclaydisk
a reply to: DigginFoTroof

You bet the states make money off the lottery, loads of it! They wouldn't do it if they didn't. They don't even have to keep the winnings to make obscene amounts of money. State lotteries are a sham.

Surely you don't think that if (10) people buy $1 tickets each that the jackpot is $10, right? And, by law, lottery commissions are required to disclose how that money is used. You'd be stunned at all the payola going on (if you know what to look for). Everybody gets a cut (salaries, "administrative" and "legal" fees, "marketing" fees, you name it). It's padded down like crazy.

Most states sold the lottery to the people as a mechanism to help the schools, parks and public works projects, but when you look at how much money gets diverted before the bottom line you'd be shocked.

And we haven't even started talking about the unclaimed winnings yet! The notion the lottery is a good thing is kind of crazy.

The lottery should be renamed...it should be called a "voluntary TAX" because that's all it is.

Lottery is a voluntary tax on the poor and stupid. The players are overwhelmingly poor and uneducated.

With that said, people do win... I've known several winners. My parents hit 5 out a 6 numbers on one of the first lotto's to crack $100 million. however, the only got like $20k after taxes. Friend of mine in high school parent's hit for a few hundred grand (dad showed up in a 928 to pick up son which is how we found out). I also actually had a client who was 20 years old and hit a scratch off giving him $250k year for the next 20 years.

The odds are not in anyone's favor though. Rich people play the lotto too... it is called investing in stocks. The odds are better

a reply to: AnnaThema

More to the point though ... you'd be far better off putting your lottery money into a savings account or adding it to your 401k (if you're in the US).

Savings makes less than a percent usually...

And IRA and 401k have limits to what you can contribute in a year. I think 18,000~

originally posted by: CriticalStinker
a reply to: AnnaThema

More to the point though ... you'd be far better off putting your lottery money into a savings account or adding it to your 401k (if you're in the US).

Savings makes less than a percent usually...

And IRA and 401k have limits to what you can contribute in a year. I think 18,000~

(I was referring to the money wasted paying for lottery tickets ... to clarify)

a reply to: DigginFoTroof

I have a friend who's brother won a State lottery for a huge amount of money. It eventually destroyed the whole family and made him gravely ill.

The whole family including the brother says that winning that money was the worse thing that ever happened to them.

I also found out that just giving money away comes with its own set of problems. You can't give away more than $14,000 a year tax free, and there are limits to life time transfers.

There are rules and laws that make additional restrictions which can also make some folk think they are not being treated fairly.

Personally, I don't expect my siblings to give me a portion of their pay check, and I wouldn't be upset if they did not give me a portion of their winnings. But I am an old lady, so there isn't much left on my bucket list, and nothing that a large sum of money would fix.

a reply to: CriticalStinker

And IRA and 401k have limits to what you can contribute in a year. I think 18,000~

My IRA has a $5,500 per-year limit (it's $6,500 if you're over age 50): www.fidelity.com...

a reply to: DigginFoTroof

All governments are full of corruption. Always assume the absolute worse in human nature. The system has to be build in such a way there are unavoidable checks and balance. The system needs to be designed by rocket scientists. Creating a corruption proof system requires sophistication. It may not be doable. But the problem has to be respected. But right now everyone hates government so we get exactly what we expect from government.

a reply to: Flyingclaydisk

The lottery should be renamed...it should be called a "voluntary TAX" because that's all it is.

Voluntary tax seems a good tax system to me. They should have a federal lottery to pay off debt. Yes, it may be corrupt to an extent.. but aren’t all things government ? Voluntary is the operative word here... beats raising taxes !!

a reply to: FamCore

I was not speaking of IRA.

$14,000 is the most you can give as the annual gift tax exclusion amount.

I have a friend that won $2.8 mill and people made his life hell. Had to take kids out of school and move away.

originally posted by: NightSkyeB4Dawn
a reply to: FamCore

I was not speaking of IRA.

$14,000 is the most you can give as the annual gift tax exclusion amount.

You can give several million without being taxed over a lifetime. When you give over $14,000, you are supposed to tell the IRS, but the tax doesn't kick in until several million. You are just notifying them that the gift amount applies to that several million allowance.