If you read any story or watch any type of report about previous big money lottery winners, they’re likely to follow a familiar path. That path is often one about how the excitement and joy they first experienced when hitting the lottery turned to frustration, annoyance and perhaps even despair.
Yes, while everyone would certainly welcome beating lofty odds to win a jackpot, lotto wins also have a dark side. There are estranged family members that come out of the woodwork asking for their share. There’s mystery lawsuits filed by people and parties with ill intentions. In some states where lotto winners aren’t permitted to remain anonymous, there’s a greater risk of being robbed or something happening to your family.
The hassle of coming into big money is enough for some lotto winners to wish that they had never even won at all – and that’s what brings us to the record $1.6 billion Mega Millions jackpot that was up for grabs earlier this week. If you bought a ticket, we’re guessing you wouldn’t think twice about accepting the money should you overcome the odds to win. But in order to avoid the pitfalls of winning that many past lotto winners have experienced, there are a few things you can do to maintain your privacy. Here’s a look:
How to Maintain Your Privacy After a Lottery Win
Only Delaware, Maryland, Kansas, North Dakota, Ohio, South Dakota and Texas allow lotto winners anonymity. In all of the other states, lotto winners are considered public record – largely because winnings are paid from public funds. Hence, if you do win the lottery, the first thing you should do before claiming your prize is erasing yourself as best as you can from the Internet.
Shut down your Facebook account, Twitter account, Instagram account, Pinterest account and any other social media or public accounts. This makes it harder for the media to find your picture, and ensures that you are minimizing the amount of personal info out there on the web.
Consult a Financial Planner
Before claiming your prize, we recommend getting in touch with a financial planner. In some states, you can actually work to have a trust or separate legal account set up to receive your lotto winnings, thereby somewhat taking your name out of it. Even if you don’t have this option, however, having a plan for where to put your money is important.
Tighten Your Circle of Friends
Whether you can accept your winnings anonymously or not, it’s always best to keep your inner circle small. While it can be natural to react jubilantly to any lotto win, the fewer people who know about it, the better. Bottom line: Only tell people you know you can trust. And if your name will be released publicly or you’re required to participate in a media press conference, have a go-to statement in mind about what the money is set aside for in case your friends and family come looking for handouts. For example, “It’s all in a trust that will be used for our children’s college tuition.”
Lay Low for a While
If your information is going to become public knowledge upon claiming your prize, we’d encourage you to get out of town – even if it’s just for a few days. Remember, we live in a world that’s defined by a 24-hour news cycle. So, while your story might be the talk of the town for a day or two, it’ll likely blow over soon when something else takes precedence. So after you get over the initial shock and joy of coming into unexpected fortune, maybe book some airfare and a hotel room somewhere to celebrate.
It’s worth mentioning that your chances of winning the lottery are so minuscule that you’ll likely never have to worry about the things we’ve mentioned here. But, this is good advice for unexpectedly coming into any large sum of money, from a rich inheritance to a stock payout to a business sale or acquisition. Make sure you know how to handle yourself, and you’ll ensure that you enjoy your newfound wealth even more.
Regards,
Ethan Warrick
Editor
Wealth Authority
