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A Man of Wealth and Taste
Join Date: Dec 2002
Location: Out there somewhere beyond the doors of perception
Posts: 51,063
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Lotteries buy Annuities for the 20 plus year payouts....thats why they discount the Lottery Ticket when you want an immediate payout....also you have to pay the income taxes no matter what...
Lottery tickets are indeed transferable to your heirs....one sticky little problem the Inheritance Tax is due is 9 months after death...so if you still have a balance of 5M for example you have to come up with the cash for the taxes...since most people don't have that kind of stroke, they have to sell the remaining proceeds of the Lottery ticket.
Thats why if you are a big winner, you want to put the name of all your heirs on the ticket, because that portion of the proceeds becomes part of their estate and not yours...
I guess the rule for taking cash now or waiting for the 20 year pay out depends upon your age...at 94..I want it now, at 24 I'll take it over time...with time you can strategize your Income Taxs and reduce them somewhat.
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"Some Observer"
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