Before the big drawing of the Power Ball last week, everyone was talking about what they would do with the money if they won. Dreams of quitting work, buying a vacation home, news cars, taking care of family members, there are a lot of hopes and dreams attached to a lottery win. Reality from the standpoint of a lottery winner that I spoke to is; if you collect your winnings incorrectly, it may be the worst thing to ever happen to you.
The gentleman I spoke to just collect his winnings in his name, deposited the check in his bank account, met with a lot of financial people but never moved the funds to any investments. Within 5 years it was all gone. He had family members coming out of the wood work, charities calling at all times, his didn’t know how to say no.
Here is what anyone who wins the lottery should consider:
Don’t tell anyone that you have won. A secret is only a secret if it is not shared.
Set up a Trust to collect your winnings. The Trust will be named, not the individual, as far as the public is concerned. You can also let those who come knocking on your door for money that your Trustee makes all of the financial decisions.
Have your wish list at hand for those items that are just frivolous purchases. Scratch that itch and get it out of your system.
Make sure you have current Estate Planning in place. You want to make sure your heirs can handle your good fortune and make it last for generations.

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