Number 1 is my older brother whom I trust implicitly to keep his mouth shut and was a former (and very successful) stock broker/financial advisor. I was also a broker from '06 through '09, so I have a pretty good handle on how I would go about things initially.
Number 2 is an attorney we both know who specializes in dealing with high net worth clients, trusts, foundations and LLC's and the like.
Tell as few people as possible, ESPECIALLY that family member you know will blab. Tell them AFTER you have the money and you are gone (see below).
Since this subject comes up every so often, perhaps the following post I wrote back in November when the Powerball exceeded $500 mil might provide some information;
I edited the following a bit for this post, so here's the Original post.
Speaking as a former broker and Financial Advisor, here's something to think about;
First of all, I understand the odds against winning, but it could just as likely be a DU'er as anyone else......so ...
If you simply give it all away, then it's gone and gone forever. I completely understand the desire to be charitable, but a much better way to go about it is by using Trusts.
By setting up charitable trusts and foundations, money injected into the trust can be invested in income generating securities (Treasury Bonds, for instance) and the money given away is the interest payments the trust receives on the investments. One hundred million dollars invested in 30 year treasuries will currently pay $2.75 million per year in interest. By using that money to go to the worthy cause, the trust can exist in perpetuity. You would have the "Random DU'er Charitable Trust" giving money away for as long as you wanted - for a century or more if you liked.
Just giving away giant sums at the beginning is in the long run, a counter productive service to the charities and causes you may hold dear.
Whatever you do, DO NOT COLLECT THE MONEY IN YOUR OWN NAME!. Set up a trust or an LLC or whatever is the most appropriate entity in your state, and send the attorney to the state lottery office to "pick up the check". BTW, they don't want to and most likely won't actually give you a check (except the big one for the photo op). What they'll do is wire the funds to an account you would set up to receive it at either a brokerage firm or a bank. Some states require the winner to have their picture taken. If that's the case, insist on anonymity and/or wear a disguise. You DO NOT want your name published or your picture taken. Stay as anonymous as you possibly can. A couple years ago there were two large powerball jackpots won back to back, about 6 or 8 weeks apart. The first was won in Ohio and they didn't come forward. For a while. When they finally did, the money was received by a lawyer in the name of an obscure investment trust. The second jackpot was won by a young man in Louisiana who showed up on Good Morning America the next fucking day! Of those two, who do you think will be broke first?
You're going to need an attorney right away, preferably one who specializes in high net worth clients and/or trusts and foundations. You are also going to need a financial advisor or broker to handle the investing. Again, go with one who has a history of dealing with high net worth clients. You are going to need to take the time to set up at least two entities - the LLC or foundation and an investment account, as well as any other trusts like education for the kids, grand kids etc. You have to sit and sign documents for these so get it done before you collect.
Throw your cell phone away. Get a new one with a new number, preferably billed to a rental mailbox, NOT your home and give that number to as FEW people as possible. If you have a land line, get it disconnected.
If you don't have one, get your passport right away. After the funds settle, GET THE FUCK OUTTA DODGE!!! Put a mil or two in your checking or debit card account and get the hell gone. For 6 months at least. Preferably a year. (new text from the original --> ) Travel to the places you always wanted to go, but GO! NOW! Leave someone behind (such as the broker and/or the attorney) to handle the accounts while you are away.<--
This kind of money will bring everyone out of the woodwork, from distant cousins you never knew you had to old high school classmates to every poor schlub with a sob story. $500 million is not enough to fix everyone's problems, so learn to say NO.
Instead of just giving money to all your family members, HIRE THEM. Unless they are total morons you don't want around, hire them to help you run the trusts. Pay them large salaries with fully funded retirements and gold plated health care plans. It's better in the long run because they'll get more out of it. Unless, again, they're total morons. Then just give them a mil or two and tell them never to talk to you again!
Large sums of sudden money does strange things to people, particularly those around you. It absolutely WILL turn what you thought was a dear friend or a loved family member into someone you don't want to have around. Be prepared for such situations.
3 out of 5 big money lottery winners in this country declare bankruptcy within 5 years of winning. Don't be one of them.
Best of luck to all who bought tickets, including me!
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