How to give lottery money to friends/family?

[g6civcx]

I buy a lottery ticket at least once a week. There's no chance of me actually winning, but I was thinking about how I would give some money to friends and family in the rare case that I do.

I want them to make the most of the money and not blow it.

I was thinking about paying off their mortgages and other debt, but what would stop them from remortgaging their house and putting themselves back into more debt?

Then I thought about paying off their student loans and maybe invest in a 529 plan for them, but then what if they don't want to go back to school any more?

Then I thought about help funding their retirement, but how much is enough? A $1 million jackpot = $300k take home, which amount isn't even enough to fund my own retirement.


The best I came up with was to open a non-profit organization and hire all of them to work there. That way, they could draw a salary, get health/life insurance, and have a 401(k) plan. The non-profit could potentially go on indefinitely if the employees could actually make it work, and at least it'll go on for as long as possible until funding runs out.

Other ideas?

[SoguRacing]

just dont transfer more than $9,999 because the receiver will be taxed for income. take it out as cash lol and hand it over. good ideas tho!

[exitspeed]

Don't go my aunts route...Win super cash and blow it on...blow and not give shit to anyone and have nothing to show for it.

If I won I would pay off my in-laws home. Buy my mom a home and my dad. They wouldn't re mortgage or anything. Everyone else I would just pay off some kinda of debt for them. It's unfortunate for them if they can't get ahead with that kinda of boost.

[jrbump]

Honestly if you are going to give family members a gift, then just give them a gift.

All sorts of conditions and control mechanisms will only lead to more money more problems.

A one time gift is plenty, if they blow it well then that's on them.

You're all adults, let go.

[flclsteve]

a friend of a friend is going to be on deal or no deal im sure they tax that too

[Phlip]

I agree with Mel, if you have it to give, then pay off a large debt like a mortgage or student loans or something like that and leave it at that... If they can't make good on getting that far ahead, then they likely don't deserve any further assistance.

[qwikspool]

I agree with Mel, if you have it to give, then pay off a large debt like a mortgage or student loans or something like that and leave it at that... If they can't make good on getting that far ahead, then they likely don't deserve any further assistance.


i agree:bigok:
you are just helping out

[g6civcx]

just dont transfer more than $9,999 because the receiver will be taxed for income. take it out as cash lol and hand it over. good ideas tho!

You have personal exemptions for gift. I'm not a tax accountant so I don't know the details. My personal understanding is that generally any gift with very limited exceptions (life insurance and retirement account are ones of the few I know of) is considered ordinary income.

Don't go my aunts route...Win super cash and blow it on...blow and not give shit to anyone and have nothing to show for it.

I already know what I'm going to do for myself. It's simple. Just pay off all my debt, max out retirement accounts, put $250k into a 529 for myself, and keep working at my job until I quit and go back to school. Pretty much everything else will be the same. Maybe I'll splurge on a new paint job and some new parts for my car, but that's it :)

Well, maybe not everything. I'd be working a lot less overtime. That's for sure :yum:

If I won I would pay off my in-laws home. Buy my mom a home and my dad. They wouldn't re mortgage or anything. Everyone else I would just pay off some kinda of debt for them. It's unfortunate for them if they can't get ahead with that kinda of boost.

Will the house be in your name? If not, they can quietly remortgage without you ever knowing.

As far as paying off debt, like I said above, they can always put themselves back into more debt.

Honestly if you are going to give family members a gift, then just give them a gift.

All sorts of conditions and control mechanisms will only lead to more money more problems.

A one time gift is plenty, if they blow it well then that's on them.

You're all adults, let go.

While this is what should happen, the responsible people don't need any help. The people who do need help don't know how to manage their money. That's why they're in the situation to begin with.

If somebody is down on their luck and who is otherwise sensible, of course I'll help them out with no strings attached.

But for the majority of people with financial problems, the problem is because they don't know how to maintain their finances to begin with, and giving them money with no guidance will not solve anything, and can actually make the problem worse.

a friend of a friend is going to be on deal or no deal im sure they tax that too

You know what they say about death and taxes.

[lflkajfj12123]

put money into IRA

invest it

[g6civcx]

put money into IRA

invest it

There are IRS limits on IRA contributions so most likely you'll still have some taxable income leftover.

[Phlip]

Cash it all out in ones and put it in a big silo, then go swimming in it like Scrooge McDuck.

[DOOK]

I like P's idea... money swimming pool ftw...

in reality, if you help your friends/family out in the way you are talking, I.E. paying off mortgages/debts/etc you are doing your part. If they then choose to indebt themselves again, that is not on you, it would be their freedom of choice, albeit a bad choice.

[Anto]

haha

according to david banner, you should:

Buy a lambo.
Throw bombs out the lambo.

[airsoft]

No cash gifts is what I think.

I agree with the above such as paying off debts, that'll definitely give them a head start at new things.

I know what I would do, I'd shit all over my desk at work and quit.

[Dirty Habit]

Buy em hookers and blow.


For real.

[trsilvias13]

Buy an apt complex or community of houses, however, put it under your name. Rent it to your relatives for cheap - pretty much enough to pay property taxes.

They can sell their house or even rent out their house they have now to pay off their own mortgage + the rent you charge.

[mrmephistopheles]

best to put it in a trust and have the gift released over 20 years or so, with perhaps 5% up front.

If you're going to do something like pay off mortgages or buy houses, it wouldn't be a bad idea to know the fiscal situation of the person you're doing it for - but you've gotta remember - it's a gift, not an investment.

My father in law stopped getting toys for his other grandkids, because he was sick of seeing them broken/at the bottom of the pool/misused. Now he gives them cash so they can get what they want and then break it.

I think the kindest thing to do is have the money in a trust where the bulk is used to build interest, and have a certain percentage meted out every year. It's beneficial to whomever receives it, and will last for a long time.

Of course, there's nothing stopping them from calling up Peachtree and getting ripped off to get cash fast.

I've always been the kind of guy to take the $500k/yr for 20 years rather than the $4million in one shot kinda deal.

[g6civcx]

Buy an apt complex or community of houses, however, put it under your name. Rent it to your relatives for cheap - pretty much enough to pay property taxes.

They can sell their house or even rent out their house they have now to pay off their own mortgage + the rent you charge.

Good idea, but I'm not sure if I want to be the property manager. Maybe I could buy a bunch of apartments and become a slum lord! :bigok:

best to put it in a trust and have the gift released over 20 years or so, with perhaps 5% up front.

I thought about a trust as well. This is probably the best solution. I was looking for other creative ideas to keep myself entertained.

Of course, there's nothing stopping them from calling up Peachtree and getting ripped off to get cash fast.

"It's your money. Use it when you need it." Is that the same company?

I've always been the kind of guy to take the $500k/yr for 20 years rather than the $4million in one shot kinda deal.

Financially it does not make sense to the annuity from the government.

You take the lump sum and invest it. You can then draw out the same $500k annuity. After 20 years, you still have money left, whereas the gov. would have not given you any more money.

Do we need to do a present value analysis of the annuity?

[EroGori]

If I won the first think I would do is pay off my student loans and purchase reliable vehicles for myself and my wife. Then I would look into purchasing a nice home here on the west coast, maybe portland or a suburb of Seattle and also a nice loft in Japan. I would then put away some money in a college fund for future kids. As far as my parents and sister goes I would pay for my sister to go to Grad school and set my parents up with a nice cruise and have their house remodeled why they are away (as a surprise). The rest.... oil futures maybe???

[HyperTek]

im filipino, i always thought if i won money, ill be told to give some to cousins i dont even know.... grrrrrrrr

Id personally help direct friends and family, like buying a real nice car to whoever i see personally would appreciate one...

Id buy me a car too, but id also look into investments or something so I could eventually live off it.

[drftwerks]

invest in drugs, either legal or not.

make that money back 20 fold

[Bobafreak]

^ very true but ehh. Buy house's and rent em out along with apartments. Donate a tad to zilvia so we can take over the worldz Fly to the moon. Get in the entertainment industry and hire the best agents Make a sex tape with a celebrity and makes mo money. More cd accounts.

[mrmephistopheles]

Financially it does not make sense to the annuity from the government.

You take the lump sum and invest it. You can then draw out the same $500k annuity. After 20 years, you still have money left, whereas the gov. would have not given you any more money.

Do we need to do a present value analysis of the annuity?

Please enlighten me - I always understood that the people who took the lump sum were all but retarded for doing so. If I'm wrong, I'd prefer to know!

[Dousan_PG]

id pay off my parents mortgage and grandparents and brothers
beyond that
maybe a gift or something for cousins/aunts uncles
and immediate only

oh yeha
id change my cell phone and move as well hahha

[40daws]

Paying off debts is risky. I always liken it to working at the dealership. I have seen people get there engines replaced (long block). This is between $6-10,000 including the rental car,that Toyota paid for. Now 1-2.5 years later,these same people are back and guess what ? They need another engine .Same as before,they still have not been changing the oil. Last time this happened about two months ago. I asked the guy when was the last time he changed it ? (Now this is 2 years later,the car still has our reminder sticker and oil filter on it.It has been 76,000 miles.) The customer response?
I added oil about a year ago when it made noise !! All I am saying is that for SOME you will be the enabler and have to constantly bail their ass out,or CUT them off.

[spoolandslide]

i think that non profit organization dealio can be considered embezzlement

right?

[blaze1]

I told my self like this

anything less then 3 million ain't shit and I refuse to share with anyone

If i win 18, taxes will take half.... and I will split it 3 ways between my mom and my sister, because thats basically all I got. If I'm going to eat they are too.


Buy a $600,000 house.... furnish and pimp it out for 30Gs.

Attempt a pro drift team to make all the other pro teams look like ugly heaps of mess (which they already are for the most part) thats like 100,000-1,000,000 depending how retarded I am.

That leaves me with about a 1.5 mill just chilling around.... all else fails, just go to film school and be a director.

[Mi Beardo es Loco]

I would buy a box so I could put a hole in it. I would then give the box to a pretty lady.

[HyperTek]

i can imagine all the family members who you dont give money to will talk shit about you lol

I like the idea tho of just helping the direct friends and family who are close to you... I dont wanna hear "you got a cousin out of state that needs some help" bullshit that i dont even know him lol
or my mom would say "send some money to the Philippines". Thats 1 thing i dislike about my background, im always compared to the family members that dont have much..

[DALAZ_68]

my best advise is....

put the winning ticket in a safe box or safe at home and get a lawyer to help u figure things out...

[atom]

Slap it in a trust and be done with it. Trying to police what your family/friends are gonna do with the money is just more drama in your life that you probably don't need.

[mrmephistopheles]

I would buy a box so I could put a hole in it. I would then give the box to a pretty lady.

I like the way you think. :rofl:



I think a conditional trust would be good.

In essence, your beneficiaries would need to meet certain requirements in order to receive the money. That way, you could be happy with how your money was given away, and ensure that the beneficiaries did what you preferred.

One way to have fun with them is to not tell them what those requirements are. :keke: