Did you win the Powerball or Mega Millions lottery? Will you buy a home, travel the globe, or buy a fleet of cars? You now have the financial freedom to do whatever you like! However, many lottery winners do not take the time to do estate planning after their financial windfall, which costs them.
So, if you won the lottery, you should talk to a lawyer for lottery winners at Orlowsky & Wilson today. Our experienced estate planning attorneys can help you address the financial and legal issues that can crop up after a lottery win.
Most people daydream about winning the lottery and think it could be incredible. But for some past winners, the lottery dream morphed into a nightmare. For example, some winners may lack financial discipline and engage in self-destructive behavior that wipes out millions of dollars in winnings in mere months. This is a common outcome if the lottery winner fails to plan and does not hire an experienced estate planning lawyer and financial expert to guide them.
Fortunately, with the assistance of qualified legal and financial professionals, you can potentially create a financial legacy that endures for generations. But enjoying the best outcome with a lottery win requires sound legal advice. Otherwise, you might lose it all.
The most common issue with a lottery win is income taxes. Most lottery windfalls are taxed as income, and if you select a lump sum payment, the state and federal government will claim much of the earnings. Imagine – you won $10 million, and the state and federal governments take $5 million or more off the top!
With proper planning, though, it is possible to reduce or even eliminate the taxes you owe with the appropriate legal structure. This requires you to take specific actions before you claim the money. Unfortunately, many lottery winners only address the tax behemoth after they claim the cash, and this may cost them dearly.
If a single person or couple wins the lottery, you should review your estate plan with a qualified attorney immediately. Your Orlowsky & Wilson attorney will advise if you should use a trust, LLC, or corporation to safeguard your winnings and lower state and federal taxes. Each option has pluses and minuses to consider.
Your estate planning attorney can also establish a family bank, dynasty trust, or family foundation to protect what is yours. But the initial step is to talk to an experienced estate planning and lottery win attorney.
Did you win the lottery? It can be a thrill to think about how your life will improve. But lottery winners should understand that it is vital to perform thorough legal and financial planning when you enjoy a significant financial windfall. A lawyer for lottery winners at Orlowsky & Wilson can assist you. Our Lincolnshire estate planning attorneys have 30 years of experience helping Illinois clients with advanced estate planning and financial matters. Call us today for an appointment at (847) 325-5559.
