A: Absolutely. This will protect you from people who want you to invest in their business scheme or those who need cash in an emergency. Lottery winners are besieged by dozens of people and charities looking for help. "There are people who do that for a living. Unless you understand that, you can become a victim very quickly," says Steve Thornton, an attorney in Bowling Green, Ky., who has represented two jackpot winners.
Q: So how can I protect myself?
A: Again, it somewhat depends on where you live. In Ohio, you can form a trust to manage the money and keep your winnings a secret. In other states, you can form a trust but still be discovered through public records. And a few states require you to show up and receive your oversized check in front of a bunch of cameras, making it impossible to stay anonymous. Thornton set up a corporation in the late 1990s to protect the identity of a client in Kentucky who won $11 million. "No one had done this before, and there were legal questions about whether a corporation can win," he says. "We were able to hide their names."
Q: Is it OK to splurge a little?
A: Sure, it's why you bought a ticket, right? "Get it out of your system, but don't go overboard," McNay says. But remember that if there's a new Mercedes-Benz in the driveway, your neighbors will probably be able to figure out who won the jackpot.
Q: How much should I help my family and others?
A: It's certainly a natural desire to help relatives in need and take care of future generation. But use extreme caution when giving out your money. Jack Whittaker, a West Virginia contractor who won a nearly $315 million Powerball jackpot in 2002, quickly fell victim to scandals, lawsuits and personal setbacks. His foundation spent $23 million building two churches, and he's been involved in hundreds of legal actions. "If you win, just don't give any money away, because the more money you give away, the more they want you to give. And once you start giving it away, everybody will label you an easy touch and be right there after you. And that includes everybody," Whittaker said five years ago.
Associated Press writer Vicki Smith in Morgantown, W.Va., contributed to this report.
- Texas seizes FLDS Church's secluded ranch
- Appeals judges question right to sue in...
- Some countries get Obama, but want his wife, too
- Get married, stay married? No fault divorce...
- How does the world feel about morals and...
- Police: Student ate more pot than recommended...
- Dirty creek, old purse solve four-decade...
- Avalanche sweeps down Everest, killing at...
- Obama: Religious intolerance has... 78
- Utah, Oklahoma same-sex marriage cases... 47
- The dangers of financially illiterate... 31
- Obama: 8 million signed up for health care 27
- Appeals judges question right to sue in... 25
- Report projects health law's subsidies... 21
- Texas seizes FLDS Church's secluded ranch 19
- Police: Student ate more pot than... 18