Smart lottery winner?

[pwd72s]

If I ever won, I'd prefer to remain anonymous too.

Mystery trust beats the clock for lottery jackpot - Yahoo! News

IOWA CITY, Iowa (AP) — Iowa Lottery officials had more questions than answers Friday as they tried to unravel the stunning mystery behind a year-old winning ticket turned in less than two hours before Thursday's deadline for a jackpot worth up to $14.3 million.

Among the questions: Who actually bought the Hot Lotto ticket? Who are members of the trust that stepped forward to claim the prize less than two hours before it expired? Where was the ticket for 364 days, and why did the trustee risk sending it by FedEx to Des Moines one day before the deadline?

Here's what they know: Two attorneys with Des Moines-based Davis Brown Law Firm showed up at Iowa Lottery headquarters at 2:10 p.m. Thursday with the winning ticket before the 4 p.m. deadline. They represent Hexam Investments Trust, whose trustee is a lawyer and businessman named Crawford Shaw from the wealthy town of Bedford, N.Y. Shaw signed the ticket, which was validated as the winner, on behalf of the trust.

"It's amazing things were cut that close. What if something had gone wrong? What if there had been a snowstorm? It was down to the wire," said Mary Neubauer, a spokeswoman for the Lottery, which had installed a countdown clock, repeatedly issued public reminders about the ticket and had been making plans to give away Iowa's portion of the unclaimed jackpot. "We just continue to be thrilled that the ticket that came in does ultimately preserve the winner's ability to claim this prize."

But before they pay a dime, Lottery officials say they will conduct a thorough investigation to make sure the ticket was legally purchased, possessed and presented. They were presented with another wrinkle Friday when they received calls from multiple, unrelated people claiming the ticket was stolen from them.

Steve Bogle, the lottery's vice president of security, said it had never faced similar circumstances in its 26-year history: a huge jackpot claimed so close before the deadline, a winner who sent tight-lipped lawyers to claim the prize rather than showing up in person, a trust whose members weren't immediately clear.

"Everybody's curiosity is very high. We hope to be able to get all our questions answered and that everything works out so we can award this prize," he said. "We will do this as expeditiously as possible but we will be very thorough and comprehensive."

Neubauer said it's not known whether Shaw, a 76-year-old Yale graduate whose website calls him "a leading international lawyer, financier and management consultant with offices in New York, London and Paris," is the winner or whether he simply represents others. She said investigators were in "initial conversations" with him and making arrangements to meet him in person.

Security footage showing someone purchasing the winning ticket — numbers 3-12-16-26-33 and Hot Ball 11 — at a busy Des Moines convenience store near Interstate 80 and Interstate 35 on Dec. 29, 2010, will be reviewed as part of the investigation.

Attorney Beau Gamble of the Davis Brown Law Firm claimed he had "no idea" who actually bought the ticket and his firm was simply representing the trust. Asked whether Shaw was the winner, Gamble said: "That will be up to the Lotto to decide. Mr. Shaw is not claiming to be the winner. He's just the trustee of the trust."

Gamble said he wasn't authorized to comment on any other details or what he called "the mechanics" of how the ticket was found and sent to Iowa.

Lottery officials said they first heard from the law firm Tuesday and were told it was representing a trust in connection with the jackpot. Neubauer said the ticket was shipped on Wednesday through FedEx, presumably from New York, and arrived at the firm Thursday.

"We look forward to learning the details we've all been wondering about these many months, such as: How did the winner find out he had the jackpot-winning ticket? How long has he known he'd won? Why did he wait until the last day to turn in the ticket?" Lottery CEO Terry Rich said. "Every winner's situation is different, and it's always fun to hear the story."

But Shaw wasn't talking Friday — he did not return phone or e-mail messages. And his son, Crawford Shaw, Jr., wouldn't reveal what he knew.

"I'm not an attorney. I can't get into it," he said.

Neubauer said the jackpot had an annuity value of $16.5 million when the prize was drawn, but has dropped to about $14.3 million because of a weak bond market. She said the winner has 60 days to decide whether to take the annuity or a cash payout of $10.75 million, which has not changed.

She said other winners had formed trusts to split up prize money — but they showed up to claim it themselves. As for Hexam, she wondered: "Is it somebody's initials?"

Despite the murky circumstances surrounding the ticket, she said its appearance should be a relief to hundreds of Lottery players who called suggesting they might be the winner.

"They didn't wash the ticket. They didn't lose the ticket. The dog didn't eat their ticket," she said. "We'd heard all of those stories and more."

[VaSteve]

In most places you agree to represent the lottery in advertising if you win. Odd that a trust could claim this prize.

[Zeke]

I think the creation of a blind trust is one way of collecting and remaining nameless. Perhaps this is what occurred in the OP.

[JJ 911SC]

Someone in the Ottawa region is going to have a good 2012...

1 Ticket $50 million upfront tax free

[azasadny]

I think setting up a trust to receive the winnings is an excellent idea, but waiting until it's "down to the wire" was unnecessary and brought negative attention.

[Zeke]

Originally Posted by azasadny

I think setting up a trust to receive the winnings is an excellent idea, but waiting until it's "down to the wire" was unnecessary and brought negative attention.

How else to stand in the dark spot light?

[rattlsnak]

yep, set up a charity trust fund, pay yourself a salry every year, donate some to charity to stay legal and never pay taxes on the winnings.

[patssle]

never pay taxes on the winnings.

I thought the lottery takes the taxes out before they send you the check? It says the cash payout is $10.75 million - not the full amount.

[pwd72s]

Originally Posted by patssle

I thought the lottery takes the taxes out before they send you the check? It says the cash payout is $10.75 million - not the full amount.

Depends on the state? The only lottery winner I know told me he wished he'd incorporated before going to collect...it would have saved him over $200,000 on his $5 million winnings.

[kinein]

trust is the way i would do it. but to wait a year to claim millions thats insane

[john70t]

I think the payout is usually over 30 years. Instant payout would be less-$10M.
Then the government takes half, and you end with $5M.
Enough to retire on if you're thrifty.

Even with the full 30 year payout plan, it is only $21K per month, not Charlie Sheen or downtown Tokyo territory.

[azasadny]

I could live (retire) on that. Pay off all bills, own a modest home free-and-clear, buy older Porsches and work on them myself, play the drums, reload ammo and shoot spoons, take our Golden Retriever to visit folks in the hospital and nursing home... you get the idea.

[id10t]

One of the AV guys won 10 mil in the florida lottery 8 years ago. He formed an s-corp for it, he gets about 250k per year after taxes on it.

He kept working 'cause he wanted to see one certain person gone... that happened, but then he was sooo close to a full state retirement, he just kept at it.

[plumb4u2]

Originally Posted by VaSteve

In most places you agree to represent the lottery in advertising if you win. Odd that a trust could claim this prize.

I'm not saying you're wrong cause I don't know but that makes no sense to me

wouldn't they have to inform you of this before you buy a ticket?

I can understand them asking a winner to represent in advertising but MAKING them I doubt it

[Joeaksa]

Originally Posted by VaSteve

In most places you agree to represent the lottery in advertising if you win. Odd that a trust could claim this prize.

Not really odd at all. I would do the same thing. When I "wear the hat of being the trustee of the trust I work with, I have to follow the rules of the trust" or risk being removed.

Very smart move... except being so late on turning the ticket in. Course setting things up so that it protects everyone involved cannot be done in a day or two either.

[JJ 911SC]

Originally Posted by patssle

I thought the lottery takes the taxes out before they send you the check? It says the cash payout is $10.75 million - not the full amount.

On this side of the border it's tax free and up-front.

If its for a local charity (hospital and the likes) they may pay out over a certain time.

Sure could have use last Friday 50 Millions which was won within 30 miles.

[GWN7]

A guy I know won $32 mil. He waited 2 months after the draw to pick up his cheque. Knowing him he prob had it in a pile of papers on his desk and forgot about checking till one day......

[Justin@Athens]

I'm thinking the reason for waiting until the very last day to claim the jackpot may be for tax purposes?

[azasadny]

In MI, they take the taxes out before the check is cut to the winner (or their blind trust). If you take the one time payment, the net to you ends up to be 1/3 of the dtated prize, since all taxes are also taken out. I believe you can setup a trust to receive the $ and a lawyer could go and pickup the winnings or ensure that the $ is electronically deposited into the trust account.

There are several accounts of people winning big and doing well after winning. Not the typical "winners who lost it all" stories, like we're used to hearing.

All of the successful winners had a plan and proper accountability and governance. Tax attys, accountants, financial planners, etc... don't come cheap but how many of us know enough to handle something like winning the lottery? There is a lot to learn very quickly and it's a full time job according to several guys who won big and have done well afterwards...