So You Won the Lottery, Now What? A Lawyer's Advice on Protecting Your Winnings
Winning the lottery is a life-changing event, but the excitement can quickly turn to stress if you're not prepared. For those who win, the first few steps you take are critical to protecting your new-found wealth and privacy. We've compiled some key advice from David Walls, a lawyer who specializes in representing lottery winners, who was recently interviewed by Straight Arrow News.
1. Don't Tell Anyone
This is the most important first step, according to Walls. The desire to share the news with friends and family is strong, but telling people about your winnings can invite unwanted attention and complicate your life. Walls advises keeping the information completely private, at least initially.
2. Maintain Your Anonymity (If Possible)
Many lottery winners wish to remain anonymous, and whether you can or not depends heavily on your state's laws. Walls notes that "a lot of states have passed laws allowing anonymity to Powerball lottery winners," while others have "a modified system, and other states have no privacy laws at all with respect to winners." He strongly recommends consulting with an attorney immediately to understand the specific laws in your state and determine the best way to maintain your privacy.
This is also a key factor when it comes to signing your ticket. While some people may advise signing the ticket immediately as a form of protection, Walls prefers that winners "consult with an attorney about anonymity, privacy, all of those kinds of things before they determine how they’re going to sign the ticket."
3. Assemble a Team of Experts
Walls suggests that your first call after securing the ticket should be to an attorney. An attorney can help you navigate the legalities of claiming the prize and protecting your privacy. He also highlights the importance of having a tax expert and a financial advisor on your team. These professionals will help you manage the financial and tax implications of your winnings. Walls cautions that the initial amount of tax withheld is "oftentimes... not the correct amount," and that "everything you do with it [the money] is going to be taxed unless you carefully plan." Having a team of experts will help ensure you make the right financial decisions to protect your new assets for the long run.
Frequently Asked Questions
Q: Can I remain anonymous if I win the Powerball jackpot?
A: It depends on the state you are in. According to David Walls, a number of states have laws that allow lottery winners to remain anonymous. Other states have a modified system, and some have no privacy laws at all regarding lottery winners. Your first step should be to consult with an attorney to understand the specific laws in your state.
Q: What is the first thing I should do after winning?
A: The very first step is to not tell anyone about your win. After that, Walls suggests you should talk to an attorney as soon as possible about maintaining your privacy and anonymity.
Q: Should I sign the back of my winning ticket?
A: Before you do anything with the ticket, David Walls recommends you consult with an attorney to discuss anonymity and privacy. While some experts may have differing opinions, an attorney can help you decide how to handle the ticket to best protect your identity.
Q: What kind of team do I need to help me?
A: Walls advises assembling a team of at least three different professionals: a lawyer, a tax expert, and a financial advisor. This team will help you navigate the legal, financial, and tax complexities of your winnings.
Based on an article titled "Can you win the $1 billion lottery jackpot and stay anonymous? It depends!" by Lauren Keenan for Straight Arrow News, available at https://san.com/cc/can-you-win-the-1-billion-lottery-jackpot-and-stay-anonymous-it-depends/.
