Using lawyers to claim a jackpot prizae

Reply #6

RJOh — Sat, 23 Mar 2002 22:17:38 GMT

The other days I mention that some workers in Ohio had used a trust arrangement to claim their Powerball lottery winnings anonymously. There is a article about them and their lawyer at this website:http://broadcast.webpoint.com/wgnradio/lottery/lottery_whowins.htmYou might find it interesting reading.RJOh

Reply #5

pegleg — Sat, 23 Mar 2002 17:17:30 GMT

I was assuming that you would be drawing out interest earned on the money placed in the trust. Any interest earned is taxable as far as I know. A tax attorney should be able to answer these questions better than I can and even suggest loopholes in the tax laws that you can take advantage of.pegleg

Reply #4

Guest — Sat, 23 Mar 2002 15:32:11 GMT

Hi again and thanks for the reply. What I am really asking is this. When my lawyer collects the money, the lottery board will deduct the tax. Thus the money is now tax free money.How come later on, when I want to withdraw from the trust, I still have to pay tax on the money I withdraw? Havent I already paid tax on the lump sum (deducted by the lottery board).Thus I would be losing money double. I hope you help me in understanding this. CheersMichael

Reply #3

pegleg — Fri, 22 Mar 2002 18:20:42 GMT

As I stated before, you will pay a tax on the amount you draw from the trust based on your yearly earned income if you have one. The whole idea of setting up a trust is twofold, 1 you protect your identity from people that you dont want to know that you have won a prize, 2 and most important is, in case of your demise, that you protect your heirs from having to pay a lump sum inheritance tax on the balance of any annual payments due you. If you can collect your prize in a lump sum, putting it in... [ More ]

Reply #2

Guest — Fri, 22 Mar 2002 17:10:35 GMT

thanks for your reply. Pardon my ignorance but once the trust is set up and tax is paid on the winnings ie about 30%, when I withdraw from the trust, do I have to pay tax futher?Do I lose more money in taxes if I set up a trust than to collect the jackpot money myself

Reply #1

pegleg — Wed, 20 Mar 2002 19:00:45 GMT

Once the trust is set up, it pays the taxes on the winnings. The person who draws money from the trust would then pay taxes on the amount drawn. The amount of taxes taken would depend on the persons total income for the year. As far as how lawyer fees get paid that should be negotiated before hand. The lawyer selected should be one who specializes in financial law. A call to your local bar association should help you find one.pegleg

Using lawyers to claim a jackpot prizae

Guest — Wed, 20 Mar 2002 17:55:40 GMT

I am interested in the suggestion that to claim a prize annonymously, lawyers can be brought in and a trust fund created. Anyone has an idea how this is done?Who then pays the tax? And which are the best lawyers for such a job. Will they charge a fixed fee or a percentage of the winnings?I presume a trust fund can be created for the Powerball and Big Game also.Michael