Mega Millions winners overnight: what happens?

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What happens to overnight Mega Millions winners (12)

According to the opinions of experts, the glitz and glamour associated with winning the lotto are likely exaggerated.
The prize pool for the Mega Millions game is now worth more than a billion dollars. Due to the fact that people all across the United States are rushing to buy lottery tickets in order to increase their chances of winning a significant sum of money, it is likely that someone may hear their ticket numbers revealed on Friday night.

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Mega Millions winners overnight: what happens?

But what comes after winning the lottery and suddenly becoming a billionaire for those who are fortunate enough to win?

After winning the lottery, the first thing a person might be tempted to do is indulge in extravagant spending like buying a mansion, going on a dream vacation, or going on a prolonged shopping spree. However, there are actually a few steps that need to be taken before a person can claim and obtain their prize.

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Mega Millions winners overnight: what happens?

Keep it silent

The first step that experts recommend for winners is one that is more challenging than you might think: keep your mouth quiet.

Mega Millions winners overnight: what happens?

The secret to success, according to those who are knowledgeable in the field, is to let as few people as possible know about your huge win.

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Mega Millions winners overnight: what happens?

According to Walt Blenner, an attorney who has vast experience working with lottery winners, the more of your family and friends you notify, the greater the likelihood that the story will spread.
Blenner emphasised the significance of putting safety first, particularly in the case of large victories such as a Mega Millions jackpot. He recommends that those who are successful leave town and go somewhere just out of sight of the authorities.

“You don’t need to rent a dacha in Siberia,” Blenner said in an interview with ABC News. “My last big winner rented a simple property under an assumed name just a few dozen miles away from where he resided for one month.” It is in the winner’s best interest to put some space between themselves and their previous environment.

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Mega Millions winners overnight: what happens?

A seasoned “lottery lawyer” from Florida named Kurt Panouses told ABC News that many of his clients who are big-winners are thankful that they kept their winnings private so that they could live their lives without worrying about their safety or having to answer awkward questions from friends and family who might view the winner as a source of income.

Consult with a trained expert.

After you have ensured your own safety, it is extremely important, according to those in the know, to seek counsel from qualified and experienced professionals.

Even if not all pros employ the same tactics, it is still in your best interest to locate one that works for you so that you can make the most informed choice possible after receiving a winning ticket.

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Mega Millions winners overnight: what happens?

“You’re talking about the most significant financial decision that they and their family is ever going to make,” said Panouses, who is also a certified public accountant or CPA. “You’re talking about the most important financial decision that they and their family is ever going to make.”
Blenner is of the opinion that the best way to address a problem is to have a group of experts involved. According to him, the most important part of his job is to put up a winning financial team for his clients that consists of a wealth manager, a tax attorney, and a CPA. Additionally, he assists the customer in redeeming their ticket, which is in and of itself a process.

Mega Millions winners overnight: what happens?

What happens to overnight Mega Millions winners
Mega Millions winners overnight: what happens?

In the end, a lottery winner will need to seek out expert counsel in order to successfully traverse the numerous steps along the path to becoming a millionaire.

The use of trusts and limited liability companies

It is usual practise for people who win the lottery to establish a trust or a limited liability corporation (LLC) in order to collect their riches.

This means that you can claim your reward without using your own name in some jurisdictions; instead, you can use the name of your limited liability company (LLC) to do so.

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Mega Millions winners overnight: what happens?

You might have to go through a lot of hoops in order to protect your identity, depending on the laws of the state in which you live.
According to Panouses, in order to assist winners in Michigan, he was required to create a club in order to distribute the prize money. Panouses appeared as a representative of the club in order to collect the winnings on behalf of his customers who had joined this “club,” while those customers’ names were concealed.

According to Panouses, trusts and limited liability companies (LLCs) can be used for one or more people, and eventually make the procedure of receiving your award safer.

Seeking the advice of a professional enables you to establish a trust or limited liability company, both of which can be utilised in the process.

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Mega Millions winners overnight: what happens?

Consider whether or not you would like to share.

Even though jackpot winners are strongly encouraged to keep their gain a secret, financial experts agree that it is best to consider whether or not they will share their prize before claiming it.

This is due to the fact that any payments given after a winner has claimed their prize will be subject to a specific gift tax, which will ultimately result in the winner having to fork over extra cash.
The experts recommend that you first choose with whom you would be dividing the prizes and then calculate the percentages of what each person would receive. Everyone who is going to be claiming a piece of the prize can be put together in a trust or LLC that is used to claim the money, and this can be done in order to claim the money.

If you were intended on splitting the money with someone else, doing so in this manner will prevent any further taxes from being assessed.

Due to the fact that everyone involved in the claim will be responsible for paying a portion of the income tax, according to the experts, sharing the claim in this manner also enables the primary winner to save money on the first taxes.
Should I invest in cash or an annuity?

Another choice that will be presented to lottery winners is whether or not to collect their rewards in the form of an annuity as opposed to a one-time cash payment.

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Mega Millions winners overnight: what happens?

When you accept an annuity, you are agreeing to receive a series of payments over a period of time, whereas when you take a cash lump sum, you are receiving the entire payout at once.

According to Blenner, it is more frequent for winners to take the lump sum since it allows them the freedom to invest however they want with the highest amount of money that is immediately available.

Mega Millions winners overnight: what happens?

According to Blenner, receiving a huge sum of money all at once in the form of a lump sum can be quite stressful for people who are not experienced in managing their wealth. An annuity, on the other hand, provides a steady stream of income for life.
According to Panouses, the choice should be based on factors such as who you are, where you are, and what you intend to do with the money.

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Mega Millions winners overnight: what happens?

According to Panouses, an annuity is a lot safer way than other options, especially for younger people or persons with less knowledge with finances.

An annuity, however, may be a better choice for others as well due to the high rates of inflation that are currently being experienced because of the impact that it has on taxes. In essence, the initial taxes deducted from a lump sum payout will be more right now due to the fact that inflation is higher.

If you choose to take out an annuity, some of your future earnings may not be subject to the same level of taxation, and you’ll also get to keep a larger portion of the initial prize money.

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Mega Millions winners overnight: what happens?

On the other hand, if you live in a state or city that has a high overall tax burden, you run the danger of owing more money in taxes every year while having a higher income.

If you will be responsible for the entirety of the award on your own, your prior expertise managing money and the amount of taxes you anticipate owing are crucial beginning points for determining whether a lump sum or an annuity payment is more appropriate for you.

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