Winning lottery jackpots brings a lot of excitement and confusion.
Find out tips and tricks past winners used.
When you win the lottery, the first thing should be signing the back of the ticket.
Couple Steve and Lenka Thomson, from West Sussex, display a £105 million lottery check. Photo: @Andrew MatthewsSource: Getty Images
Whoever signs it and presents an original ID can claim the prize.
What comes next after signing the ticket?
Find out whether your state permits lottery winners to hide their identities.
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If it does, remain anonymous even after you have the money in yourbank account.
Additionally, the move protects a lottery winner from scammers.
A lottery winner has 180 days a year to claim the prize.
Taxi driver Amo Riselli bagged a £24,501,283 lotto jackpot. Photo: @Andrew MatthewsSource: Getty Images
The duration depends on where you bought the ticket and the state laws governing lottery activities in that location.
Do not sit back and wonder, “I won the lottery; now what?”
You will need a tax expert, an accountant, aninsurance agentand an investment advisor.
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However, some of them are out there to swindle lottery winners.
Your family and other people might claim a portion of the money.
Therefore, consult a lottery attorney to help you understand how the court determines lottery ownership and sharing.
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The attorney’s legal fee is negotiable, and a lottery winner can pay after cashing out the money.
Hire a tax expert before you cash the ticket
A lottery winner has two options forcashing out lotterymoney.
Choose a lump sum or 30 annual instalments for 29 years.
Dennis Banfield (second left) and his wife Shirley (second right) celebrated an £18,139,352 lottery jackpot win with their daughters, Karen (left) and Tina (right). Photo: @Andrew MatthewsSource: Getty Images
Alternatively, choose annuity andpay the taxas you receive the payments.
Buy a life insurance policy to cover the estate tax bill.
If you die, the family will still have money for estate tax.
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Tax professional weighs the pros and cons of each payment plan and does the complicated tax calculations.
You need asavings accountbut do not put the entire fortune in a single account.
If you want financial stability, clear your mortgage and other loans to avoid paying future interests.
Paul and Louise Drake took home a £5.16 million lotto check. Photo: @Andrew MilliganSource: Getty Images
As your financial advisor helps you make wiseinvestment decisions, the accountant will monitor your money spending habits.
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4.
Choose short-term investments that will boostlong-term investments.
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Go forlower-risk investmentsand flee from anything that promises you easy money.
Set aside the largest portion of the jackpot for real estate.
Otherlucrative investsare:
5.
Additionally, review your investment portfolio periodically and make necessary adjustments.
You will hate losing your estate and other business to your malicious ex-spouse, baby mamas/daddies or creditors.
It would help if you used multipleasset protection strategieslike:
7.
Plan charitable gifts
Use part of the lottery winnings' annuity as a public charitable deduction.
Stay anonymous while making the donations to block tons of requests from NGOs and foundations.
Put your irrevocable contribution in a donor-advised fund and claim a federal tax deduction.
However, do not list the account’s beneficiaries (NGOs) for some months or years.
Othercharitable giftsinclude:
Sell my car fast!
The information will help you avoid the pitfalls new winners get into.
Do not give up now because your turn to win might be around the corner.
May luck find you someday.
READ ALSO:Where are the best places to sell Pokemon cards in 2021?
Are you looking for something that can make you rich overnight?
Buy Pokemon cards today and auction them.
Briefly.co.zapublished a list of the bestplaces to sell Pokemoncards in 2021.
She has a Bachelor of Commerce & IT from the University of Nairobi and joined Briefly.co.za in November 2019.
The writer completed a Google News Initiate Course.
you’re free to email her at perisrodah254@gmail.com.
