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There is a chance that at least some people will end 2020 much richer than most of us.
With no ticket matching all six numbers drawn on Tuesday at Mega Millions, the jackpot jumped to $ 401 million in Friday night’s draw. Powerball’s top prize is not far behind, $ 363 million for Wednesday night’s draw.
If you’re lucky enough to be the next big winner, experts say that part of protecting your windfall is protecting your identity, if possible.
“Four hundred million dollars would attract many [attention]”said attorney Kurt Panouses, founder of the Panouses Law Group in Indialantic, Florida, and an expert in helping lottery winners.
Keeping your victories a secret helps protect you from strangers and scammers who want a part of the prize.
However, states do not always facilitate privacy: only a few allow winners to remain completely anonymous. In others, you can claim the prize through a trust or limited liability corporation, or LLC, that doesn’t have your name on it – but you need to plan for it.
Here are some tips for big lottery winners to try to keep their privacy.
Dealing with your ticket
The standard advice is to sign on the back of the ticket. However, if you are in a state that allows a trust or LLC to claim the prize, you may want to postpone the subscription if privacy is important to you.
“Obviously, you want to protect the ticket, but whatever name is on the back of the ticket is what is identified as the beneficiary,” said Panouses. “The back of the ticket is important for privacy purposes.”
In most states, he said, if you use an LLC or trust to claim the money, you can avoid publicly disclosing your name.
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Panousas said he also created trust funds whose beneficiaries are so-called subtrusts rather than winners. This adds an extra layer of privacy protection.
Stay quiet
While you may be eager to share your exciting news, experts say the less people know, the better.
“Keep the small circle of people who know, or don’t tell anyone,” said Panouses.
In addition, if you are claiming victory in conjunction with, say, other family members – that is, through a trust or LLC as a shared prize – everyone involved must sign nondisclosure agreements, said Panouses.
Money management
In addition to choosing experienced professionals to help navigate unexpected earnings, it may also be wise to avoid professionals in your hometown if you are concerned about the leakage of your award news.
“Someone in that office could say to others, ‘Oh, this is the lottery winner,'” said Panouses. He has a large investment and fiduciary company with a history of serving wealthy families.
“When I open accounts with them, I know that the information will not be released,” said Panouses.
Plan an escape
It’s probably a good idea to skip town a bit after claiming your prize.
“We make sure that the winners have a plan to go somewhere for a week or more after the claim,” said Panouses. “If people find out you won, they can show up at your home.”
It is also worth changing your cell phone number, he said. If you have a landline, this must also be changed.
You can also close your social media accounts if you cannot remain anonymous.