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Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

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Tuesday, October 8, 2013

6 Things to Know About the Lottery

Lottery2

Winning the lottery may sound like easy money, but taking charge of a windfall can be hard work.  Here are six things you should know:

  1. Winning is a long shot.  The odds of winning the Powerball jackpot are around one in 175 million.
  2. Your life will become more complicated.  Some find themselves working a whole lot more while others watch their lives fall apart.
  3. You will be famous.  Only five states allow winners to collect rewards anonymously.  In all others, you will become a target for scammers and strangers.
  4. Assemble an A-team.  Winners will at the very least now need an investment adviser, insurance expert, estate-planning lawyer, and CPA.
  5. Choose wisely.  Some winners have a choice between a lump-sum payment or yearly disbursements.  Each has its own pros and cons.
  6. Don’t act like Santa.  Giving out handouts to whoever asks can wreak havoc on relationships and bank accounts.  Consider setting up a trust instead to act as a buffer.

See Susannah Snider, 6 Things You Must Know About Winning the Lottery, Kiplinger, November 2013.

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Comments

It's not a lottery, it's a tax and we should tell people so. As indicated, if I have a ticket and you don't, the odds of either of us winning are about the same.

Posted by: Chris Gair | Oct 9, 2013 7:35:42 AM

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