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.
Are you hitting on me? Because I'm liking it.
:biggrin:
Cheers TallBill! :beer;
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.
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
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:
...
RBC