Can you imagine if you win the Mega Millions or Powerball lottery? What will you do with it? Go on vacation, buy a house? You also can relax and enjoy the sights of Chicago, such as the Skydeck Chicago at Wilis Tower or the Field Museum. You never need to work again!
However, the first thing you should do once you find out you won the lottery is to talk to an estate planning attorney. You should retain an attorney before you claim your winnings. This will help with several legal and financial issues that many lottery winners often have. So, if you win the lottery, speak to one of our Lake Forest estate planning attorneys today.
Winning a lot of money in the lottery sounds like a dream come true. However, it is easy to find many people who won the lottery whose lives became a nightmare. Some people devolve into self-destructive behaviors that wipe out their money and damage their families. This often happens if the lottery winner does not retain a qualified attorney and financial professional to guide them.
The good news is with the help of qualified professionals, you can significantly reduce your taxes, create a long-lasting business, and even create a family empire that lasts for generations. Without good legal and financial advice, however, winning the lottery may not be the dream many think it is.
Lottery winnings are usually taxed as income. One of the most significant issues with lottery winners is the income tax consequences. If you choose a lump sum payment, the government claims a lot of the earnings to pay taxes. However, you can reduce, minimize, and sometimes eliminate taxes with the correct legal structure.
Reducing taxes means taking care of the issue before receiving the money. That is why you should do essential legal planning before claiming the prize. Unfortunately, many lottery winners only deal with the tax issue after the fact. That can be a costly mistake.
An individual or married couple who wins the lottery should immediately review estate planning options with a qualified attorney. Your lawyer will help you decide whether you should use a trust, LLC, or corporation to protect your winnings and reduce taxes. Each of these choices has advantages and disadvantages to consider.
You can also rely on your estate planning attorney to set up a dynasty trust, family bank, family office, or family foundation. The first step is to speak to a qualified estate planning attorney to guide you on your lottery winnings journey.
If you win the lottery, it can be thrilling as you think about how your life will change for the better. However, many people need to realize how critical it is to engage in careful financial and legal planning when they receive a financial windfall. A Lake Forest estate planning attorney can help you.
Orlowsky & Wilson has 30 years of experience helping Lake Forest clients in Lake County, Chicago, Libertyville, Northbrook, Gurnee, Glenview, Grayslake, Lake Zurich, Lake Forest, Buffalo Grove, Vernon Hills, Highland Park, Wilmette, Deerfield, Arlington Heights, and Wilmette. Contact Lincolnshire estate planning attorneys at (847) 325-5559 if you need estate planning services.