What Happens if You Win a Lotto Jackpot Under the New Law?
Have you seen the latest news? It seems that some Lotto jackpots won’t have to worry about their anonymity. While this might seem like your identity will be protected from the general public is you’re holding a winning ticket, you should still be concerned.
Why would you want to be anonymous anyway? The first reason is somewhat obvious. New wealth attracts just about everyone you once knew. And, it seems to also make you ripe for solicitation from all kinds of businesses. You’ll suddenly find yourself on the hit list of financial advisors and vacation planners. Without question, you’ll feel overwhelmed with your sudden popularity.
So, what does the new law do as far Lotto jackpot winners? More importantly, will it give you some privacy if you win big?
Select Lottery Winners and Anonymity
In case you didn’t already know, you sign up for publicity whenever you play the Lottery. It’s part of the rules mandated by the Texas Lottery Commission. Basically, the cost of winning could mean that everyone knows your name. It’s all about keeping up the level of excitement.
Earlier this month, a new law went into effect regarding certain lottery winners. Some of the relevant provisions of H.B. No, 59 include the following:
- New law pertains to Lottery winners who have won $1 million or more
- New law also includes members of legal entities whose prize was more than $1 million
- Personal identification of any of the preceding will be protected provided that individuals state their desire to remain anonymous
- Winnings are not distributed as periodic payments (rather than lump sum)
So, what does this boil down to? If you win more than $1 million, you have to take this whole check to avoid anyone else from learning your identity. Is this smart? Or, are there other ways to accomplish the same feat?
Protecting Your Identity as a Lotto Winner
Does the change in law really help those who want to remain anonymous? In certain circumstances, it might seem great. However, the truth is that if you’re about to become a new millionaire, you need experienced legal advice.
Take a look at this article we wrote earlier this year. We provided you with some information about a prior client. A lottery trust was created, and we picked up the prize. The client’s identity continues to remain private.
It’s not just privacy that’s at stake when you hit the lottery. You may be part of a pool and need to create a legal entity to collect the money. You should be concerned about tax consequences. The privilege of new found wealth comes with some work.