So, you’re planning on winning the Big One. The Powerball and the Mega Millions jackpots are getting so high that people are winning record-setting jackpots. Yes, I’m already contemplating what I’m going to buy when I win, whether or not to take the lump sum or the yearly payments, and to where I am going to disappear once I’m rich.
But one key aspect of winning the lottery needs to be discussed, whether it’s me or you who wins. That key aspect is that once you discover that you’ve won, what are the first steps you should take? So I’m going to very quickly discuss the steps you should take when your dream comes true and you win a life-changing jackpot.
Depending on several factors, including how much you actually won and what state you are in, the consensus is that you get a lawyer and an accountant even before you sign the ticket. For example, if you don’t want to identify yourself publicly, you want to make sure that the option of claiming the prize through some sort of anonymity is available.
Maybe the option exists for you to set up a blind trust that allows you to collect the prize anonymously rather than identifying yourself. Signing the back of the ticket may remove your option to do so. Your advisors should be able to tell you whether or not you can set up a trust or otherwise remain anonymous.
You want to make copies of the ticket, both front and back to show your lawyer and accountant. The winning ticket itself should be securely stored, perhaps in a safe deposit box. This ticket is potentially life-changing (depending on the amount), so you need to take every precaution to ensure its safekeeping.
Another recommendation is to keep it quiet that you won. Many past lottery winners attest to this tactic. Additionally, you will probably want to change your phone number and get a P.O. box as you will be sought after by friends, family, and outside organizations who’ll see you as a source of income. Wait a few weeks for the fuss to die down, particularly if you won a jackpot that the news media is covering. Then there is less ado when you do show up to claim your winnings.
You will likely change your address anyway if you won life-changing amounts of money, but all phone numbers addresses, email addresses, etc, associated with you or your family should be changed and either unlisted, delisted or deleted entirely. Consider deleting social media profiles as well.
When you have confirmed that you are indeed a winner of a large amount of money, you are advised to take your time and make a plan. Your plan can include whatever you plan to buy, what you may or may not invest in, what you want to stash away, and who should get the money in the event of your death.
This idea of having a plan in place before you claim your prize is strongly advised because most lottery winners go broke. Quickly. Many times, these people go broke within a few years of winning the jackpot. You have time to lay out your plans because most states give the winner 3-12 months to claim the money. There’s really no need to rush over to the lottery office.
When you are about to collect your money, you want to meet with your bank branch’s upper management to discuss a plan of action when you get your check. At the very least you certainly want to let them know you are coming into a large sum of money, and to be prepared to see the transaction through to completion smoothly. Consider, for example, that if you win $500 million, your bank only insure an tiny amount of it. So you want a plan that includes how and where your money will be divided over multiple banks and accounts. Again, your lawyers and accountants can work with you to devise this plan.