Perhaps that is why IM and Seeker have been checking in on the thread recently - to see if those posters are still running their mouths (fingers). I am guessing they know who they are IRL and have asked/told them to cease and desist because they occasionally reveal a bit more about circumstances or plans. And their participation also helps keep this thread going and I am sure the Ks would dearly love it and similar threads to peter out.
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Wouldn’t it become part of your estate? My MIL had a small annuity and the remaining payments were paid to her 3 kids over the life of the plan.
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We won! A whopping $4.00!
We will take the cash payout! 
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I don’t actually know the answer, but I would guess it only becomes part of your estate if you take the lump sum.
As soon as I win the lottery, I will consult an estate lawyer on the subject. Lol.
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If you establish a trust as the recipient of the winnings, the trust remains intact upon your death and the others in the trust still have access and must continue abiding by the rules of the established trust.
Questions like this are why it is so important that, should you win a significant amount, you sign the back of the ticket and put it in a very safe place. Tell no one of your good fortune and find a very good investment management company and a lawyer you trust and have investigated. Of course they will take their percent but are worth that expense. Only after you have received advice you can live with do you approach the lottery office in your area to claim your winning.
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Well it doesn’t look like anyone won last night so it will now grow to 1.9 billion. So much for my overseas trip. Back to the store to buy more tickets.
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My understannding is you start a trust or something, and the money actually goes to the trust, and since you have beneficiaries, the trust keeps getting the money, and the people you designate inherit it. I suspect that’s why so many people who are big winners don’t come forward at first to claim their prize.
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There was a person in my area that won about 5 million. They blew through it in 3 years and had to sell a lot of their purchases.
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Oof. Horrible.
But I believe that happens fairly often.
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I think that by and large, folks who buy lottery tickets really need the money and may have been strapped for cash lifelong. They may also have a lot of family abd friends who are lower income. They may not ever have developed wealth management skills. Certainly the folks I see in the gas stations or corner stores buying lottery tickets look like they can’t really afford them. In contrast my friends with more solid income streams don’t seem to buy lottery tickets. There may be exceptions obviously.
But this means that the winners are statistically more likely to not have wealth management skills, are going to have many longterm needs and wants, and a big cash sum is going to dissipate fast. $5 million isn’t that much money anymore. Where I live, it’s one horse acreage, or two nicer suburban houses. A million dollars doesn’t make you a millionaire anymore.
Folks without wealth management skills also burn through insurance payouts, inheritances, compensation, etc.
I feel like I could figure out how to manage a big windfall, but at my time of life it would be about making my current basic lifestyle better. After a certain point you don’t really change your life that much or run with a different crowd.
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After taxes its probably around 2.5 million or so I would guess. They bought a lot of 4 wheelers, boats, jet skis things like that. They did build a nice barn to store the toys. I think they got their money back on that at least when they sold the property.
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Do you pay taxes on lottery winnings?
2.5 million won’t go far today.
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I don’t know what it says about me, but it was only after catching up on this thread that I understood why so many people were in line at the customer service counter at the grocery store. I saw a gaggle of people filling out lotto tickets, couldn’t understand why.
I need to get out more. Or at least try to read the news.
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I thought they deducted the taxes right off the top before they even hand you the lottery money.
But I have not won the lottery (yet), so I don’t know that for a fact.
I feel like I could make 2.5 million go a pretty long way. But I would not be buying boats and 4 wheelers, either. Lol.
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Yup, withholding, fed state, child support, etc.
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I could be mistaken, but long ago, I read (I think) that if you took a cash payout on a lottery ticket (rather than have the money spread over X number of years), the winner would get 50% of the total. After getting the 50%, the winner would get taxed about 50% of the remainder. So, in the end, the winner (with an immediate cash payout) would get about 25% of the total.
But this was YEARS ago from my memory, so…
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Yup, the billion or so advertised is the pre tax value if you don’t take the cash out. The cash out is figured on the amount you would need to invest at a rather modest rate for 20 years to get to the advertised payout.
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If you do not know how to handle money before you win the Lottery, you do not know how to handle money after winning the lottery.
You are better off putting the money you use to buy tickets and when you have enough buy shares.
NonI do not buy lottery tickets. Yes I have Shares.
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Depending on your state tax rate, it’s roughly between 25% and 31%. This website shows the net payout by state. https://www.usamega.com/powerball/jackpot
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This Powerball of 1.6 Billion will provide a $782 Million lump sum payout. Then Federal and State tax is deducted - here in NC that is approximately 20%. So, if I were to win this lottery and take the lump sum, I would net less than $550 million! Gosh, I’m not sure that is worth the $2 investment! 
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