Never let lottery assign you an annuity

Reply #12

CASH Only — Sat, 14 Sep 2002 17:09:37 GMT

My understanding is that if the estate cannot pay the inheritance tax in full (on the remaining payments) within 10 months of the winner's death, the estate would not be able to receive any more annuity checks until the tax is paid, even if the estate has to sell their assets. The estate would also have to pay interest on the inheritance tax they owe. I MAY BE WRONG; please correct me if necessary.

Reply #11

rundown99 — Sat, 14 Sep 2002 16:46:15 GMT

That's what I was wondering about???What do you mean by UP FRONT? Does that mean that the first several annual payments after one's death will be confiscated by the IRS because of taxes or will the tax just become larger each year

Reply #10

CASH Only — Sat, 14 Sep 2002 11:27:54 GMT

Dear littleoldlady: CA needs to change the rules so that the choice can be made AFTER you win. As for someone's life span, there is NO guarantee (always remember 9/11) that someone will live long enough to receive all their payments. What if she dies, and her heirs (grandchildren, etc) have to pay inheritance tax UP FRONT (within 10 months of the winner's death) on the future lottery payments, and they can't pay off the IRS bill ? People who want the annuity DON'T consider all the potential cons... [ More ]

Reply #9

Littleoldlady — Sat, 14 Sep 2002 08:35:28 GMT

If she fits the life span statistic, she will live to be at least 76.5 years old. Also by being a female, you can probably add 5-10 years to that. Women are very conservative by nature. Women are adept at survival skills. She did the right thing.

Reply #8

CASH Only — Mon, 02 Sep 2002 21:01:11 GMT

I'm not sure if the direct deposit program applies to non-US government checks. Regardless, she should have chosen CASH (when she played) so she wouldn't have to worry about getting future payments. As for making bad investments on a lump sum prize, it's vital to get expert financial advice ASAP after you win (probably from persons representing different ways of investing).

Reply #7

rundown99 — Mon, 02 Sep 2002 20:15:24 GMT

CASH OnlyYou said that the grandmother will have checks mailed to her. But couldn't she do direct deposit in this day of age, so that no matter where she is, the money will always reach her bank account.

Reply #6

rundown99 — Mon, 02 Sep 2002 19:42:09 GMT

I myself was wondering whether cash is better or annuity. I haven't won a jackpot but I want to know just in case. Of the most recent powerball jackpot winners of the past 2 years, almost all of them selected cash, but what if they screw up in a bad investment

Reply #5

ejflashfold — Sun, 01 Sep 2002 18:46:06 GMT

CASH!!!!Cash CASH and nothing less. Avoid gimmicks.

Reply #4

Todd — Sat, 31 Aug 2002 21:26:32 GMT

Annuity = No control over your moneyAnnuity = Up-front death taxes to your heirs if you die during annuity period, even though the annuity still only gets paid yearlyAnnuity = Much less leverage with your money because you have less on-handAnnuity = Much less money if you have a problem down the road and need to have it bought outDefinitely go with cash. It is not less, it's much more.

Reply #3

wishin — Sat, 31 Aug 2002 21:16:39 GMT

ok, i guess i need some additional clarification on the cash only vs annuities, both pro and con. also, i don't understand why the decision should be after one wins rather than before. anyhow, this is how i perceive the situation..... cash only - less total amount received - hope a financial firm knows what they're doing - invest poorly and it's lostannuity - total is more - invest poorly/bad advice, more money will be comingJust curious on other... [ More ]

Reply #2

CASH Only — Wed, 28 Aug 2002 08:28:54 GMT

The issue here is NOT whether cash is always the way to go . California still requires the cash/annuity choice be made when you PLAY instead of after you win. The time to make such an important financial decision should be AFTER you win, not before.

Reply #1

RJOh — Tue, 27 Aug 2002 21:37:13 GMT

I read the article about th

Never let lottery assign you an annuity

CASH Only — Tue, 27 Aug 2002 11:23:14 GMT

The Brisbane, CA, winner apparently made the biggest possible mistake that could be made when purchasing lottery tickets. California still requires Super Lotto Plus players to choose cash or annuity WHEN they play, instead of after they win. The 43-year-old GRANDMOTHER not only has to wait until age 68 to receive all her winnings, but the payments are backloaded -the first payment is the smallest. I bet whatever financial advice she's receiving includes being told she should have chosen lum... [ More ]