Home / NEWS / Wealth / Mega Millions jackpot jumps to $970 million and Powerball prize is $730 million. Avoid these mistakes if you win

Mega Millions jackpot jumps to $970 million and Powerball prize is $730 million. Avoid these mistakes if you win

A chap purchases Powerball lottery tickets for a $700 million jackpot at a newsstand in New York City, August 23, 2017.

Brendan McDermid | Reuters

The Mega Millions jackpot has withed its march toward $1 billion.

With no ticket matching all six numbers drawn Tuesday night, the top prize is now an eye-popping $970 million for the next picture, set for Friday night. And Powerball’s jackpot isn’t too far behind for Wednesday night’s drawing: $730 million. 

Both jackpots, which foetid among the top 10 largest ever, have been rolling higher since September through twice-weekly outlines with no winner.

Of course, at some point that will change. And whoever ends up holding the winning ticket in either plucky will also discover their life is about to change dramatically. While the windfall opens up a world of prospects, it also can mean leaving your pre-winning life behind. 

“On one hand, it’s a fantastic experience but, on the other hand, it may not fail with necessary changes that can cause anxiety,” said Walt Blenner, an attorney and founder of Blenner Law Coterie in Palm Harbor, Florida.

Here are some mistakes that winners should avoid.

Telling too many people

It’s a misunderstand to share the news broadly, Blenner said.

“Keep it as nuclear a group as possible — tell immediate family exclusive,” he said.

Even then, he said, word may leak out or people in your life may start putting two and two together. 

“For these gargantuan triumphs, everyone is looking for who won,” Blenner said.

The goal should be to protect your identity, if you can, when you claim your winnings. Some asserts allow winners to remain anonymous. Others let you create a trust or other legal entity to claim the prize, thereby heed your own name out of the public realm.

And, you may need to do some fibbing in your efforts to keep the news close. That is, be ready to tell white lies if preparing to claim the prize or handling acute emotions means you can’t go to work or you need to beg off public engagements.

“A lot of people don’t like to deceive others, but in this case it’s a matter of self-preservation and security,” Blenner said.

Rushing to declare prize

Depending on the state where you bought the winning ticket, you get anywhere from three months to a year to assertion jackpots in both Powerball and Mega Millions.

In other words, it’s worth exploring your options — both in assumptions agrees of shielding your identity if possible and how you plan to receive the money.

More from Personal Finance:
IRS delays start of tax organizing season to Feb. 12
Going it alone

Before you claim, you should assemble a team of experienced professionals: ideally, an attorney, accountant and pecuniary advisor. 

“When you get to these stratospheric amounts of money, you don’t even know what you don’t know,” Blenner said.

For as it happens, there may be ways to minimize your tax bill. While 24% is withheld from big lottery wins for federal levies, the top marginal rate of 37% means you’d owe a lot more. There also are typically state taxes to consider. 

Someone on the tandem join up should also serve as a gatekeeper. That is, they can field requests from moochers or scammers or anyone else who wants a article of your windfall.

It’s worth noting that most people will never have to worry about these goods. The chance of winning is 1 in 302 million for Mega Millions and 1 in 292 million for Powerball.

Check Also

A guide on how not to embarrass yourself while traveling in Japan

Customs and bears are so important to Japanese culture that many travel websites have sections …

Leave a Reply

Your email address will not be published. Required fields are marked *