Re: What would you do with the money ?

"Roughrider50" <corkyf56@xxxxxxxxxxx> wrote in message
news:itdIh.219544$k82.96614@xxxxxxxxxxxxxxxxxxxxxxxxx


Reminds me of a guy years ago, I believe in PA, that won a big lottery. It
was one of those that pay installments for several years. The first thing
he did was hide it(so his soon to be ex couldn't get any) & then he
divorced his wife & shuffled the winnings to his girlfriends name so his
ex couldn't claim any. Anyway the ex did find out & sued him for her
share(marital assets). She won the suit & the judge ordered him to pay her
half of the value of the winnings in one lump sum. Being as he was
receiving the winnings in installments he didn't have enough cash to
cover her half. Never heard how it was finally settled but did hear she
was starting to sieze assets. I guess paybacks a bitch.

Roughrider you bring up a very good point. Financially, it's probably
better to accept the big lottery winnings over the 20 years. However,
practically it's often better to accept the lump sum payment, even though
that means giving up a substantial amount of the prize.

You mentioned one reason, another is the tax consequence. In the worst
case, for example, you win $100M on Jan1, opt for yearly payments, and then
die before you receive many of those payments. The IRS, and possibly your
state, will want any estate tax paid on the annuitized amount, not on what
you have received in hand. So let's say the $100M amount shown on the
billboard and the oversized check you hold at the press conference actually
means you are due $50M, payable over 20 years. You receive a few payments,
maybe they total $5M and you get hit by a supermodel's SUV. The IRS will
want estate tax paid on the $50M due within the year after your death, even
though you have only actually received a fraction of that amount.


--

Scott

Drain the swamp. Deport Islam. Until Muslims observe and protect
human/religious rights of others they should not be allowed to remain in the
West. Islam, as practiced, is incompatible with Western freedom.


.

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