Powerball jackpot nears $1 billion: Here's what to do if you win
It's been nearly three months since anyone has won the Powerball, sending its jackpot to a whopping $950 million - the sixth largest in the game's history.
The next drawing is on Saturday, so what should you do if you end up winning the life-changing prize?
Sign your ticket!
What you can do:
Once the screaming and jumping subsides, grab a pen, sign your ticket to establish ownership, then store it in a safe location until you claim your prize.
Get a lawyer
What's next:
Before you claim your prize, consult an estate planning lawyer and financial advisor.
They can help you get documents and accounts ready, and offer advice, like whether to take the lump-sum or receive annual payments.
Lump-sum vs. annuity
By the numbers:
Lottery winners can choose to receive their winnings in 30 annual payments or a one-time, lump-sum cash payment.
The annuity option gives you the headline jackpot number paid over 29 years with an initial payment, then 29 annual payments increasing by 5% each year.
With the lump-sum option, you will receive the jackpot all at once with a discount set by the lottery and interest rates.
Federal and jurisdictional income taxes apply to both options, so which is better?
Forbes says most winners choose the lump sum, but "the answer depends on factors such as your expected return on invested cash and the pros and cons of having a massive amount of current money versus getting paid out over 29 years."
Claiming the jackpot
What we know:
Lottery prizes must be claimed in the jurisdiction where the winning ticket was purchased, anywhere from 90 days to one year after the drawing.
Check the back of your lottery ticket for an expiration date.
Prices over $600 can be claimed at some lottery offices, but contact the lottery for exact locations.
Who should you tell?
What they're saying:
Forbes recommends only telling your immediate family first, and maybe not even all of them!
"Wait to spread the news of your winning only after you have a communication plan about who you want to tell and what your message will be."
Several states allow winners to remain anonymous no matter the size of their winnings:
- Delaware
- Kansas
- Maryland
- Mississippi
- Missouri
- Montana
- New Jersey
- North Dakota
- South Carolina
- Wyoming
Other states allow conditional anonymity or claiming through a trust.
However. California, Connecticut, New York, Pennsylvania, Tennessee and Washington require public disclosure of lottery winners.
The Source: The information from this article was sourced from Powerball and Forbes.