A person draws a lottery ticket at a 7-Eleven as the Mega Millions jackpot reaches $1.58 billion on August 8, 2023 in Redwood City, California, USA.
Teyfan Coskun | Anadolu Agency | Getty Images
“Please keep your mouth shut.”
Hundreds of millions of dollars can change the lives of lottery winners, their families, and other loved ones. But Kashif Ahmed, a certified financial planner and president of American Private Wealth in Bedford, Mass., has simple advice for lucky recipients: “Shut up.” .
Mega Millions says some states allow you to claim your prize anonymously, but disclosure laws vary by state.
Keeping the winnings private will avoid requests from “dozens of new relatives and friends that you never knew about,” Ahmed said.
“Don’t rush to ask for money.”
Ahmed also recommends immediately hiring a team of professionals, including a financial advisor, estate planning attorney, and certified public accountant.
“Don’t rush to claim money before you put this team together,” he said. There are specific deadlines to claim your prize, which vary by state.
Consider an “asset protection strategy”
Once you’ve assembled a team of experts, you should try to protect your wealth with an “asset protection strategy,” says Ashton Lawrence, CFP and director of Mariner Wealth Advisors in Greenville, South Carolina.
“This may include establishing a trust, forming a corporation, private foundation, taking out insurance, or taking other steps to protect assets from potential creditors, lawsuits, and other risks,” he said. There is,” he said. Some of these may be beneficial to prepare before you claim your prize.
Of course, the optimal strategy will depend on the unique needs of the winner.
Mega Millions isn’t the only chance to win big. The Powerball jackpot would have grown to an estimated $687 million if there was no big winner in Monday night’s drawing. The odds of winning the grand prize in that game are approximately 1 in 292 million.
