What To Do When You Win The Lotter

Winning the lottery can be financially liberating, but it can also intrude on your personal life. When you win the lottery your name is released to the public and your lack of anonymity can make you prey to people looking for a piece of your winnings. Whether it is family, friends, or strangers, many people will come out of the woodwork to ask you for favours.

One of the biggest adjustments you have to make after winning the lottery is handling the fame that comes with it. Susan Bradley, founder of Sudden Money Institute, estimates that it can take five or more years to adjust to receiving a windfall. As an experienced financial advisor I understand the challenges that you face when you win the lottery. For your unique situation here are some things you might want to consider doing if you have a winning ticket.

Hold Off on Claiming Your Money

Many lotteries have a grace period before your ticket expires. You can typically wait 180 days to a year before you have to claim your winnings. Waiting a few months will give you time to prepare a team of professionals to help you with your newfound wealth and fame.

Protect Your Ticket

Your ticket is obviously incredibly valuable, so while you wait to claim it you need to keep it protected. To collect your winnings you just need the ticket and some ID, so you should sign your name on the back of the ticket immediately to ensure that you’ve claimed it as your own. As well, putting it in a safety deposit box will help you store it securely. As an additional safety measure, you may want to take a picture of the ticket before locking it away.

Protect Your Privacy

You’ll want to maintain as much privacy as you can to safeguard yourself against unwanted attention. If you win a lot of money privacy plays a part in protecting it. Here are some steps you can take to protect your privacy: generally keeping a low profile, changing your social media accounts to private, and even possibly changing your phone number.

Assemble a Team of Professional Advisors
As soon as you claim your money, depending on how big the sum is, you may need professional help. You’ll want a team of financial and legal professionals prepared and ready, preferably those who have experience with people in your position. A financial advisor can help you not only manage your wealth, but also invest it. You may also need a new accountant who better suits your new needs. Your financial advisors can also help you decide which way of receiving your windfall is best for you (either lump-sum or installed payments).

Furthermore, you will need legal professionals. After winning the lottery your name and total winnings are released publicly and it is not uncommon for winners to be sued by old friends, employees, or partners in an attempt to get some of their money. It is important to be equipped with professionals that can help you protect your wealth.

Consider Your Charitable Donations

With your newfound wealth donating to charity is not only a great thing to do but it can also give you a considerable tax deduction. Your team of financial professionals can help you with this step.

Review Your Estate Plan

If there is ever a time to review your estate plan, it’s after winning the lottery. If you have become suddenly wealthy you want to make sure that your money is protected and set to be passed on to whomsoever you choose.

Consider Your Future

Adjusting to any sort of large inheritance or windfall can be overwhelming and it’s important to handle your new wealth responsibly. You might want to consider your life goals and how this new money can help you achieve them. Do you want to keep your current job, or do you want to pursue other interests? Winning the lottery can be life changing, so it’s important to take the time to sit down and map out your plan. Your financial advisor can help you with this step, making a financial plan that will align your goals and your finances.
If you are looking for more advice you may also find my article “How to Handle a Windfall” helpful.
 


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