5 Things the Powerball Winner Needs to Do

The recently won $758.7 million Powerball jackpot is the largest payout ever awarded to a single-ticket winner. It is also the second-largest jackpot awarded in U.S. history. The identity of the individual who bought the winning ticket in a Chicopee, Massachusetts store is still unknown. But, for whomever won the prize, there are a few practical steps that should be considered before spending a single red cent.

First, keep the ticket close. Make numerous signed copies and place the original ticket somewhere safe. Second, take some time before claiming the prize. Most lottery winners have ninety days to claim their winnings. These months should be used to gather a team of experts to help avoid the common pitfalls associated with winning huge sums of wealth. At the very least, the winner needs an attorney, an accountant, and a financial planner to help manage and invest the prize money. Third, remain anonymous. Some states allow winners to keep their profile out of public view. Other states require the winner’s name to be published. If this is the case, consider leaving the state or area for a short time. Such a move may help avoid long-lost relatives suddenly appearing with their hands out. Fourth, carefully consider whether to accept the lump sum payout or a single payout. And finally, stop and think. Consider the ramifications of winning such a large sum of money and allow time to process.

Some winners opt to set up charitable organizations and donate hefty sums to better society. Whatever the choice, it is important to mentally and emotionally deal with the new reality of being obscenely rich and the weighty responsibility that comes with great wealth.

See Sarah O’Brien, 5 Things the Powerball Winner Needs to Do, CNBC, August 24, 2017.

Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.