If I were Filthy Rich
By jkanoid+38 How would you claim a huge lottery win in California
How would you claim a huge lottery win in California while 1) maintaining your anonymity as best and economically as you can; and 2) protecting your assets as best and economically as you can.
Obviously, I need this info asap, because I'm winning the lottery tonight :-)
Here are my "parameters":
1 State law requires that my name be made public.
2 I'm not changing my name or state of residence.
- Presume that I'd perform all of the recommended phone number change/PO Box setup/social media cleansing before ever getting to the legal stuff.
- Presume that I already have a CFP and Estate Layer (because I do), and that I would have conferred with them after fine-tuning the plan I'm proposing below.
3 I THINK I'll need an LLC first to obtain a loan for doing all this, plus to act as beneficiary to the pseudo-claiming trust in item 4. A bank or investment account would be created for this entity at the same time.
4 Create the pseudo-claiming trust to initially deposit the Lotter check - a bank or investment account would be created for this entity at the same time.
5 I receive the lottery check while wearing a goofy mask.
6 I sign over the check to the trust created in Step 4
7 I transfer 99% of the assets in the trust to the beneficiary LLC created in step 3. (I PRESUME that this is a conventional privacy/asset protection maneuver. If it's not, please suggest a more effective set of steps - thanks!)
8 I create a Family Trust Company (an LLC), probably in South Dakota, to manage all of the subordinate entities that are created here (and over the years), and maybe to contain PR personnel and answering services to keep me isolated from handout-seekers.
9 I create another Asset Protection Trust to own the Family Trust Company
10 I create a new Estate Trust (another Asset Protection Trust) to receive the majority of the funds from the Step 3 LLC. This baby may be all I'll ever need, or will act as the mother for a series of other trusts and LLCs that are required for privacy and asset protection as the need arises (Form 709 gifts, for instance).
All of this is based on the thread "How I Would Claim a Huge $100 Million Plus Jackpot Anonymously With Asset Protection" ( https://www.reddit.com/r/ifiwonthelottery/comments/1f5te6d/how_i_would_claim_a_huge_100_million_plus_jackpot/ ) - but dumbed down to suit my situation.
I know a single Asset Protection Trust sounds the simplest, but the multi-layer approach comes up many times when searching for how the rich people isolate and protect their assets and privacy.
What do you think of this?
Recent responses
+42 @blonktime Unfortunately, in California, an individual must claim any lottery winnings, and a trust cannot. A lawyer cannot claim your winnings on your behalf either. Your name, the store name and store location that sold the winning lottery ticket is announced. The best you can do in CA is wear a mask, and decline any sort of comments to media outlets, but your name will still be announced.
+21 @Doc_Hank 1. Sign the ticket, place in plastic bag in your freezer (safest place unless you have a fireproof safe) 2. Find a lawyer 3. Find an accountant - one you pay per hour, not a percentage 4. Listen to 2 and 3. 5. Then go cash it in
+18 @celiacsunshine Grifters won't just target you, they'll also target anyone who might be connected to you or receive money from you. Have a plan in place to protect your loved ones, and right before claiming your winnings (but after you've set up the lawyers, trusts, CPA, and other legal stuff), meet with your closest family and friends and explain to them that you won big in the lottery and what happens next. When you go to the lottery office to claim your winnings, don't do a press conference (unless your state requires one) and don't answer any questions from the media. Personally, I would have a charter plane waiting for me after collecting my winnings, and would immediately jet off on an extended vacation far away (ideally in another country where no one knows who I am or cares about the US lottery). Book hotels and such under assumed names (celebrities do this). Also, be sure to delete all social media accounts, email accounts, and phone numbers before claiming. Use burner phones to communicate. As you've already stated, you will own nothing under your own name, all of your assets (real estate, vehicles, payroll for household staff, charity funds, etc) will be owned by various trusts and LLC's that you control. Expect your relationships with your friends and family to change, at best. Sadly, there's a solid chance you'll have to go no contact with people you were once close with.