Well, we know for a fact there are at least a handful of lucky people who got a slice of the $1.5 billion top prize in Wednesday’s Power Ball drawing. Now that they have won, they will face many obstacles that the newly enriched face and will have to move quickly, but with caution, to secure their interest. First, finding a good law firm that can assist in managing the estate, especially when it comes to tax concerns, is a must. Web searches are useful in finding reputable firms but the ABA can also be contacted to provide a list of leading lights in the necessary legal fields. In addition, a lawyer can assist with privacy protection by setting up an LLC, or other business entity, that can be used to purchase residential property without having the true owner identity revealed. Another great concern for many lottery winners is determining how some of the money will be distributed among friends and family, assuming the winner is inclined towards sharing some of the wealth that is. Figuring out people’s needs and how best to provide for them can be a difficult task so having a financial advisor included in the process can be a benefit as they will be able to give an accurate idea of what it takes to provide a certain standard of living in various circumstances. But don’t think that the above advice only applies to lottery winners, anyone that comes into great wealth would be well suited to take these steps since the problems of the suddenly enriched tend to be universal.
See Suzanne McGee, How to protect your money, privacy and yourself if you win Powerball, The Guardian, January 13, 2016.
Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.
