Lottery Win Viral Video: Who is Entitled to the Winnings?
This lottery win may have split a family apart. But who legally deserves the winnings?
The woman in the video asked her nephew to buy her a lottery ticket. She agreed to split the winnings with him and wrote his name on the back of the ticket. However, she became greedy when the gaming commission split the 1.2 million Canadian dollars 50/50 between the aunt and nephew.
This situation begs the question, who should receive the winnings in the lottery?
Signing the Back of the Ticket
Experts recommend that the first thing you should do after a lottery win is sign the back of the ticket. Signing establishes ownership.
The woman in the video signed her nephew’s name on the back of the ticket, making him a partial owner of the winnings. Therefore, he was legally entitled to half of the money.
However, the case was settled out of court. Sadly, the nephew was awarded only $350,000, while the aunt got $850,000. Consequently, the nephew likely accepted the offer to avoid a lengthy and costly legal battle.
Other Legal Implications of a Lottery Win
State governments administer cash lotteries to raise money for the state. Since the government is involved, several legal implications arise. Therefore, here are additional steps you should take to keep your lottery win safe.
- Copy your ticket and keep it in a safe place. You cannot claim your money if you lose your ticket and don’t have a copy.
- Talk to a tax advisor. Lottery wins are subject to high taxes. You may also have to pay gift taxes if you give any of the money away. A tax advisor will help you plan taxes and ensure you do everything by the book.
- Decide how you want to receive your money. Winners can receive winnings in installments or a lump sum. Both have different financial implications. Your tax advisor will help you determine which is right for you.
Protecting Your Identity
Many people will want to protect their identity after a lottery win. Doing so will prevent them from being targeted for theft. However, not every state allows you to remain anonymous.
You can remain anonymous if you win the lottery in the following states.
- Kansas
- Maryland
- North Dakota
- Texas
- Ohio
- South Carolina
Some states even allow lottery winners to form a trust to claim their prize anonymously.
However, some states, like California, do not let you hide your identity. The governments in these states feel that allowing winners to hide their identities could damage the integrity of the competitions. Lottery organizations could falsely claim an anonymous winner, leading to massive fraud.
If you win the lottery in a state requiring you to reveal your identity, take several steps to keep yourself safe.
- Wait a week before you claim your prize. Doing so will allow the media frenzy to die down.
- Change your cellphone number and email address
- Do not answer texts and calls from unknown numbers.
Consult a Financial Advisor
You should consult a financial advisor after a lottery win. Many lottery winners make unwise financial decisions and end up in a worse situation than before winning. A financial advisor will help you make wise investments so you can live off your winnings for the rest of your life.
If you are unsure where to find a financial advisor, check out this Business Insider list. These professionals will help you keep your money safe.