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View Full Version : Claiming Lottery Winnings under Company Name??


RaistlinZ
02-14-2010, 05:40 AM
Random question... I read a while back that a fellow had won the lottery and claimed it under and LLC he created to keep everyone in the free know from knowing he won. Does anyone know if this works and how to do it?

Is the money subject to additional taxes? How does it all still get to you if you claim it under a company name? Thanks.

Zim Hosein
02-14-2010, 05:57 AM
Random question... I read a while back that a fellow had won the lottery and claimed it under and LLC he created to keep everyone in the free know from knowing he won. Does anyone know if this works and how to do it?

Is the money subject to additional taxes? How does it all still get to you if you claim it under a company name? Thanks.

Here's a primer (http://www.irs.gov/businesses/small/article/0,,id=98277,00.html) on LLC's RaistlinZ :)

TallBill
02-14-2010, 05:58 AM
That isn't a random question.

Zim Hosein
02-14-2010, 06:01 AM
That isn't a random question.

I'm feeling lucky? :biggrin:

TallBill
02-14-2010, 06:03 AM
Are you hitting on me? Because I'm liking it.

Zim Hosein
02-14-2010, 06:35 AM
Are you hitting on me? Because I'm liking it.

:biggrin:

Cheers TallBill! :beer;

So
02-14-2010, 06:40 AM
:biggrin:

Cheers TallBill! :beer;

http://www.movieweb.com/tv/TEsqzstzHq9Tws/HUJfsOJOisy4NK

I'm not hearing a noooo...

biggestmuff
02-14-2010, 06:45 AM
Random question... I read a while back that a fellow had won the lottery and claimed it under and LLC he created to keep everyone in the free know from knowing he won. Does anyone know if this works and how to do it?

Is the money subject to additional taxes? How does it all still get to you if you claim it under a company name? Thanks.

It must not have worked. If it did work then you wouldn't be asking the question because you wouldn't have known about the guy.

YetioDoom
02-14-2010, 09:18 AM
It must not have worked. If it did work then you wouldn't be asking the question because you wouldn't have known about the guy.

Or it DID work and there are tons of lottery winners we don't know about...

SKORPI0
02-14-2010, 09:26 AM
How Does a Blind Trust Work for Lottery Winners? (http://www.ehow.com/how-does_5616648_blind-trust-work-lottery-winners_.html)

LTC8K6
02-14-2010, 10:41 AM
You remain unanimous and newly rich.

Not sure I'd trust that site...

techs
02-14-2010, 11:21 AM
How Does a Blind Trust Work for Lottery Winners? (http://www.ehow.com/how-does_5616648_blind-trust-work-lottery-winners_.html)

I don't need one.
I'd split town so fast the ink wouldn't be dry on my check.
I wouldn't live ostentatiously. Buy a nice upper middle class, lower rich type house.
No Rolls Royce's. A nice Lexus will do.
I would go by a different name to anyone I meet.

BoomerD
02-14-2010, 12:41 PM
Hmmmm.....Maui Bound LLC?

That has a nice ring to it...

dman
02-14-2010, 02:19 PM
I'd think if you won the lottery you'd be able to afford a legal adviser to help you through such an issue.

HendrixFan
02-14-2010, 03:21 PM
It isn't a LLC you want, it is a blind trust. See an attorney about setting it up BEFORE you cash your ticket. First thing you do is make a copy of the winning ticket. Casually go into a bank and get a safety deposit box, inquire about the price (even though money is now not an issue) to hide any idea that you just won. Keep the original in the safety deposit box. Then go see the attorney about setting up the blind trust to receive the winnings. Start your plan of escape, so that you can get away from all the leeches that will try and suck you dry. Get out and away without anyone knowing you won, and the blind trust will hide any legal mechanism to find out you won. Since lottery is public money, they have to provide the winner's information to those that inquire. Unless of course, the winner was smart enough to set up the blind trust as the winner.

Mike Gayner
02-14-2010, 03:36 PM
Here in NZ trusts are very common, particularly among the more affluent. We have suggested in the past that clients who are habitual lottery players withdrawal a few hundred dollars are year from the Trust as a "lotto expense" - non deductible of course. The reason is because for lottery winnings to be legally an asset of the Trust, the Trust must own the lotto ticket BEFORE the draw is won. If you try to set up a Trust after you have won, a court will "bust" it (look up Trust Busting).

As far as I'm concerned, it's impossible to legitimately get lottery winnings into another entity after the fact, and it's very easy for the government to detect any attempts to do so. I'm speaking from a NZ law perspective, but in this respect I would expect other jurisdictions to be similar.

I don't know what a "blind trust" is (must be an American thing), but I doubt there's any way of concealing your attempt to subvert the government's detection. They will simply look at the Trust deed, registration details, application for IRD number (IRD number, social security, whatever it's called over there) etc and easily see that the trust was set up post hoc.

BTW, a Trust is the perfect entity to keep lottery winnings - so if you already have a Trust, you should do everything you can to ensure your Trust is the one buying the ticket, not you.

(I'm an accountant BTW)

Mike Gayner
02-14-2010, 03:45 PM
Dp

gorcorps
02-14-2010, 05:42 PM
http://www.pics.bbzzdd.com/users/gorcorps/new-gayner-poster.jpg

RoamByChance
03-08-2011, 03:42 PM
If you hit the jackpot in the USA and want to remain anonymous, you'll want a Blind Revocable Trust. But it's moot, if you live in one of the many states that adheres to strict transparency laws that will have them publish your name. After that, hunting you down isn't so hard.

To reiterate: the state in which you purchase lottery tickets sets the rules by which you can claim your lottery winnings.

Some states allow the winner to claim through a partnership, corporation or trust, in essence laying down a layer of anonymity for the winner. But only a layer, for a trust is a financial entity and basic details of its organization are usually a matter of public record, such as name of executor (third party -usually an attorney) and beneficiaries (you). Depending on which vehicle you use, tax implications will vary, so seek out the best professional advice. In other words, do research before you hand your money over to anybody.

I'm only aware of one state in the Union that by law does not publish your name without written consent. Do I hear cheers for Delaware? Yeah, it's our Switzerland.

A Blind Revocable Trust is a financial entity in which all the assets (your winnings) are transferred and the executor (lawyer specializing in estate/trust planning and not the one that gets you out of jail by setting bail) serves as the manager/gatekeeper. The extent of his duties and powers are set by you when you initially create the trust, to insure as much as possible that you're in control and not him. If he proves unsatisfactory, you can always revoke the trust and dissolve it. Not all blind trusts are revocable, so get very good legal advice before, during and after the process.

If you win a large sum, consider getting a team together:

1. Lawyer specializing in estate planning/trust management
2. Wealth management experts. Barron's publishes a list of top certified financial planners by state periodically. Find your list and work your way down. The best have expertise in working with high net worth individuals and families and have experience in all the areas of wealth management from estate planning, tax strategies, investment vehicles, business and financial planning, down to major gift giving and monthly cash flow, so you don't do what Mr. Jack Whittaker did.

For Christmas 2002, he won $315 million. After taking the lump cash sum and paying taxes, he walked away with a cool $114 million. That's as good as cash, folks. In less than five years, he was stone broke. As of the end of 2007, he had 400 lawsuits filed against him for everything from wrongful death to not paying gambling debts at casinos. Don't be Jack Whittaker.

Why do you need a lawyer specializing in estate planning and wealth managers/certified financial planners who know estate management? Because they can keep each other honest. And 80% of the time, their expertise veers into very divergent areas. Where they meet, they serve as checks and balances for one another.

My lawyer is in one large city and my financial management team is in another large city, but in the same state. At best, they know of each other, but don't know each other. I have boutique firms, not large companies with multiple offices all over the place. Big doesn't always mean better, and it just didn't feel right for me. Do your own research.

I interviewed three lawyers and three wealth management teams before choosing. I did a ton of research and asked lots of questions, including to their references.

Last extra: as of 2011, there are 8 states in the USA that do not charge state taxes: Alaska, Florida, New Hampshire, South Dakota, Tennesee, Texas, Washington,, and Wyoming. Florida is particularly good because it doesn't charge state or local income taxes. But beware, in lieu of these taxes, they charge higher property or sales tax. Your team should give you the whole low down. If you're a visitor to the USA and reside out of it, can't help ya, although the Cayman Islands is a no brainer.

Good Luck y'all!

RBC

BudAshes
03-08-2011, 04:02 PM
If you hit the jackpot in the USA and want to remain anonymous, you'll want a Blind Revocable Trust. But it's moot, if you live in one of the many states that adheres to strict transparency laws that will have them publish your name. After that, hunting you down isn't so hard.

To reiterate: the state in which you purchase lottery tickets sets the rules by which you can claim your lottery winnings.

Some states allow the winner to claim through a partnership, corporation or trust, in essence laying down a layer of anonymity for the winner. But only a layer, for a trust is a financial entity and basic details of its organization are usually a matter of public record, such as name of executor (third party -usually an attorney) and beneficiaries (you). Depending on which vehicle you use, tax implications will vary, so seek out the best professional advice. In other words, do research before you hand your money over to anybody.

I'm only aware of one state in the Union that by law does not publish your name without written consent. Do I hear cheers for Delaware? Yeah, it's our Switzerland.

A Blind Revocable Trust is a financial entity in which all the assets (your winnings) are transferred and the executor (lawyer specializing in estate/trust planning and not the one that gets you out of jail by setting bail) serves as the manager/gatekeeper. The extent of his duties and powers are set by you when you initially create the trust, to insure as much as possible that you're in control and not him. If he proves unsatisfactory, you can always revoke the trust and dissolve it. Not all blind trusts are revocable, so get very good legal advice before, during and after the process.

If you win a large sum, consider getting a team together:

1. Lawyer specializing in estate planning/trust management
2. Wealth management experts. Barron's publishes a list of top certified financial planners by state periodically. Find your list and work your way down. The best have expertise in working with high net worth individuals and families and have experience in all the areas of wealth management from estate planning, tax strategies, investment vehicles, business and financial planning, down to major gift giving and monthly cash flow, so you don't do what Mr. Jack Whittaker did.

For Christmas 2002, he won $315 million. After taking the lump cash sum and paying taxes, he walked away with a cool $114 million. That's as good as cash, folks. In less than five years, he was stone broke. As of the end of 2007, he had 400 lawsuits filed against him for everything from wrongful death to not paying gambling debts at casinos. Don't be Jack Whittaker.

Why do you need a lawyer specializing in estate planning and wealth managers/certified financial planners who know estate management? Because they can keep each other honest. And 80% of the time, their expertise veers into very divergent areas. Where they meet, they serve as checks and balances for one another.

My lawyer is in one large city and my financial management team is in another large city, but in the same state. At best, they know of each other, but don't know each other. I have boutique firms, not large companies with multiple offices all over the place. Big doesn't always mean better, and it just didn't feel right for me. Do your own research.

I interviewed three lawyers and three wealth management teams before choosing. I did a ton of research and asked lots of questions, including to their references.

Last extra: as of 2011, there are 8 states in the USA that do not charge state taxes: Alaska, Florida, New Hampshire, South Dakota, Tennesee, Texas, Washington,, and Wyoming. Florida is particularly good because it doesn't charge state or local income taxes. But beware, in lieu of these taxes, they charge higher property or sales tax. Your team should give you the whole low down. If you're a visitor to the USA and reside out of it, can't help ya, although the Cayman Islands is a no brainer.

Good Luck y'all!

RBC

lol, what a first post.

bignateyk
03-08-2011, 04:04 PM
If you hit the jackpot in the USA and want to remain anonymous, you'll want a Blind Revocable Trust. But it's moot, if you live in one of the many states that adheres to strict transparency laws that will have them publish your name. After that, hunting you down isn't so hard.

To reiterate: the state in which you purchase lottery tickets sets the rules by which you can claim your lottery winnings.

Some states allow the winner to claim through a partnership, corporation or trust, in essence laying down a layer of anonymity for the winner. But only a layer, for a trust is a financial entity and basic details of its organization are usually a matter of public record, such as name of executor (third party -usually an attorney) and beneficiaries (you). Depending on which vehicle you use, tax implications will vary, so seek out the best professional advice. In other words, do research before you hand your money over to anybody.

I'm only aware of one state in the Union that by law does not publish your name without written consent. Do I hear cheers for Delaware? Yeah, it's our Switzerland.

A Blind Revocable Trust is a financial entity in which all the assets (your winnings) are transferred and the executor (lawyer specializing in estate/trust planning and not the one that gets you out of jail by setting bail) serves as the manager/gatekeeper. The extent of his duties and powers are set by you when you initially create the trust, to insure as much as possible that you're in control and not him. If he proves unsatisfactory, you can always revoke the trust and dissolve it. Not all blind trusts are revocable, so get very good legal advice before, during and after the process.

If you win a large sum, consider getting a team together:

1. Lawyer specializing in estate planning/trust management
2. Wealth management experts. Barron's publishes a list of top certified financial planners by state periodically. Find your list and work your way down. The best have expertise in working with high net worth individuals and families and have experience in all the areas of wealth management from estate planning, tax strategies, investment vehicles, business and financial planning, down to major gift giving and monthly cash flow, so you don't do what Mr. Jack Whittaker did.

For Christmas 2002, he won $315 million. After taking the lump cash sum and paying taxes, he walked away with a cool $114 million. That's as good as cash, folks. In less than five years, he was stone broke. As of the end of 2007, he had 400 lawsuits filed against him for everything from wrongful death to not paying gambling debts at casinos. Don't be Jack Whittaker.

Why do you need a lawyer specializing in estate planning and wealth managers/certified financial planners who know estate management? Because they can keep each other honest. And 80% of the time, their expertise veers into very divergent areas. Where they meet, they serve as checks and balances for one another.

My lawyer is in one large city and my financial management team is in another large city, but in the same state. At best, they know of each other, but don't know each other. I have boutique firms, not large companies with multiple offices all over the place. Big doesn't always mean better, and it just didn't feel right for me. Do your own research.

I interviewed three lawyers and three wealth management teams before choosing. I did a ton of research and asked lots of questions, including to their references.

Last extra: as of 2011, there are 8 states in the USA that do not charge state taxes: Alaska, Florida, New Hampshire, South Dakota, Tennesee, Texas, Washington,, and Wyoming. Florida is particularly good because it doesn't charge state or local income taxes. But beware, in lieu of these taxes, they charge higher property or sales tax. Your team should give you the whole low down. If you're a visitor to the USA and reside out of it, can't help ya, although the Cayman Islands is a no brainer.

Good Luck y'all!

RBC

That's a strangely specific and detailed first post. A little too detailed if you ask me... :hmm:

thraashman
03-08-2011, 04:14 PM
That's a strangely specific and detailed first post. A little too detailed if you ask me... :hmm:

It also resurrected a year dead thread.

JTsyo
03-08-2011, 04:46 PM
...

RBC

ANd you don't want to keep a online account that can be traced. That means a new account for each post :sneaky:

cardiac
03-08-2011, 05:35 PM
Best first post so far this year.....

MotionMan
03-08-2011, 05:48 PM
A man rushes into his house and announces to his wife,
"I won the lottery! Go pack your bags!"

She says,
"Great! Where are we going?"

He looks at her blankly, pauses, and then says,
"I don't care where you go. Just get the f**k out."

(This joke only works in non-community property states, BTW.)

MotionMan