There are now almost half a billion dollars nestled in the Mega Millions jackpot.
With no tickets matching the six numbers drawn on Tuesday, the game’s maximum prize pool rose to $ 490 million in Friday night’s draw. The Powerball jackpot is not far behind: $ 410 million for Wednesday night’s draw.
If you are daydreaming about how you would use such unexpected windfall, whether it would involve buying expensive items or financing a charitable cause (or both), be aware that winning is not as simple as claiming money and go with your life.
“Your old life is over,” said Walt Blenner, a lawyer and founder of the Blenner Law Group in Palm Harbor, Florida. “You can’t go back to that.”
For the Mega Millions $ 490 million jackpot, the cash option – which most winners choose instead of an annuity – is $ 372.3 million. For the $ 410 million Powerball prize, it’s $ 316.4 million.
In addition to the financial aspect of windfall – which involves things like taxes, investments and estate planning – there are some other problems that big lottery winners can face, sometimes even before claiming their prize.
“On the one hand, it is a fantastic experience, but on the other it can come with necessary changes that can cause anxiety,” said Blenner.
Your security
Depending on the state in which you purchased the ticket, you may not be able to remain anonymous, which creates a whirlwind of public attention – not everything is guaranteed as a passenger or innocent. Even if you can protect your identity, it is possible that the word will leak in one way or another that you were (or may be) the winner, said Blenner.
When he represented the winner of a Mega Millions $ 451 million jackpot in 2018 – Shane Missler, then 20 years old – Blenner had to pressure Missler and his family about the importance of disappearing before the public found out who won (in Florida , lottery winners cannot remain anonymous).
It took me a while to get them to assess the potential danger they would be in if they stayed home.
Walt Blenner
Blenner Law Group founder
They were hesitant, so he ended up telling them that there was rescue and kidnap insurance. It affected them, and they rented a house 20 miles away under a pseudonym.
“It took a while to get them to assess the potential danger they would be in if they stayed home,” said Blenner.
Even taking the winning ticket to the lottery headquarters was done with safety in mind: Blenner and Missler took a private jet to Tallahassee, and the lottery officials met them on the runway to receive the ticket.
Your day job
When you get extreme wealth through the lottery, it usually makes sense to quit your daily job, said Blenner.
“You don’t need that income and having a job would indicate where you are, which could be more of a security risk,” he said.
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After Missler’s $ 451 million jackpot victory, Blenner was contacted by complete strangers.
“For most of the six months, I received emails, letters and phone calls,” he said.
The messages came from a variety of people: those who offered to sell something (ie, real estate, a private jet), investment advisers who wanted to manage money and individuals who were in financial difficulty and seeking help.
Exposure to legal proceedings
Whether you can remain anonymous or not, spending the money can actually reveal your newfound wealth.
This means that false claims against you are more likely if others think you have money to spend. For example, someone might purposely crash your car in the hope of collecting, said Blenner.
“When there is extreme wealth involved, you are the prime candidate for something like that,” said Blenner.
He said it is important to have insurance to protect against such potential claims.