Can someone try to answer my question?

Reply #6

RDP — Mon, 03 Jun 2002 02:16:17 GMT

...someone wins and forms a partnership or LLC, the shares don't have to be equal? Thanks.

Reply #5

bramstoker — Sun, 02 Jun 2002 14:37:36 GMT

There is a $10,000 maximum for tax-free gifts to your friends and family members. If you don't share equal parts with all the members of your group, it will be considered a gift. An easy way to overcome this is to create a partnership or an LLC. If you win the big bucks you could incorporate and give any number of shares to your buddies and relatives. But check with your specific state guidelines, some States do not allow this.

Reply #4

MrHappy — Sun, 02 Jun 2002 08:43:37 GMT

Share?! Geeze!!! If you're married, half your money has gone bye-bye the same second the drawing is over. Underage children(yours)....I don't know. But to share with friends, adult children, parents, and so on, you would probably have to give them an equal share of the jackpot without paying a 'sin' tax. It's sad that there is a sin tax when you give away large amount of money to friends and family. You can always have them sue you (for none lottery reasons) and settle out of court so you won't... [ More ]

Reply #3

Guest — Sun, 02 Jun 2002 03:18:47 GMT

The decision is made with the help of a lawyer between the time you win and when you remove the ticket from the safe deposit box to redeem it. This is why so many winners are the xxx family trust. If you don't like your family, put one million in a checking acount and give them all check books at the same time, say half an hour before the bank closes.

Reply #2

RDP — Sun, 02 Jun 2002 02:32:07 GMT

I guess the main thing I want to know is, must the legal formation of a group that will share a lottery prize be made before the drawing, or can it be formed after with the help of an attorney

Reply #1

CASH Only — Sun, 02 Jun 2002 00:24:09 GMT

Different states have different rules about paying multiple winners on a single ticket. I would also be concerned about the cash/annuity issue. All Powerball members allow the cash/annuity choice to be made after winning; however, New York, where I live, requires Lotto/Mega Millions players to make the choice WHEN THEY PLAY; a ticket marked 26 ANNUAL PAYMENTS _cannot_ be changed to lump sum

Can someone try to answer my question?

RDP — Sat, 01 Jun 2002 20:56:19 GMT

If someone wins a lottery such as MegaMillions or Powerball and decides after they win that they want to share the prize with friends and family BUT lives in a state that will only pay one person or legal entity, what can be done so that a number of people can share the prize? Can a legal entity be formed after the lottery is won so that multiple people can receive a percentage of the prize, or is it too late to do that once the drawing is over? Thanks for your help.