How To Share Lottery Winnings With Your Family

Updated February 25, 2024 

You can check US lottery numbers here: Powerball, Mega Millions

If you regularly play the lottery on LottoAsian, you probably envision the day when you will win. You think you’re going to buy your mom her dreamhouse, travel around the world, get a yellow Lamborghini, or whatever is on your bucket list.

And while sharing your sudden wealth is a noble and generous intention, giving large sums of money without proper planning might not be the best idea. This article will provide you with some tips on how to avoid any bumps in the road and let you and your family enjoy the jackpot as you should.

Hire a professional

You can google how many former lottery winners went broke after a year or two of a luxurious lifestyle. It’s sad. The only reason why that keeps happening is that sudden wealth can blindside you. Regardless of your current financial situation, you might not be prepared to deal with such a big sum right away.

Don’t repeat someone else’s mistake and hire a team of experts who will consult you on how to invest/spend/share your money wisely. Bear in mind that they work for you, not vise versa, and if you somewhat disagree with their advice, don’t hesitate to go through everything again and find both intelligent and satisfactory options.

Give Your Family Cash Handouts of Up to $15,000 per year

If you hand out cash, you can take advantage of an annual exclusion that allows you to transfer the money as a gift without paying an additional gift tax. Currently, this sum can’t be more than $15,000. If you’re married, you can double the tax-exempt amount and help your family with up to $30,000.

Pay for college

Another great way to share your winnings with your family is to set up a 529 college savings plan for each beneficiary. It’s a good and smart idea, making sure that your family won’t have to pay a considerable amount of money out-of-pocket when they have tons of other expenses to meet. As a bonus, you can accumulate as much money as you want, and it’s tax-free.

Spend a little on Gambling

You can spend some small amount of money in the casino online or in Vegas. Don’t go over your limits and spend just a portion of your savings.  If you live in a country where online gaming is restricted, you can use the special VPN for gambling.

Pay off your family’s debts

Of course, that’s not as tempting as buying a shiny car, but debts are slowly killing people by putting them in distress. Free your family from this burden and pay off their credit cards, mortgages, and other loans. However, make sure that your generosity will not make you go broke.

Hire a professional

You can Google how many former lottery winners went broke after a year or two of a luxurious lifestyle. It’s sad. The only reason why that keeps happening is that sudden wealth can blindside you. Regardless of your current financial situation, you might not be prepared to deal with such a big sum right away.

Don’t repeat someone else’s mistake and hire a team of experts who will consult you on how to invest/spend/share your money wisely. Bear in mind that they work for you, not vise versa, and if you somewhat disagree with their advice, don’t hesitate to go through everything again and find both intelligent and satisfactory options.

Set Up An Emergency Fund

Sometimes, the best gift you can buy your family after a lottery win is peace of mind. Recent research states that around 40% of Americans cannot cover an emergency bill as little as $400. So when you put some money away for the unexpected – you can guarantee that your family will sleep better at night.

An emergency fund’s beauty is that it’s readily available to liquidate in case of an unexpected financial need. That means it won’t just come in handy during serious emergencies like illnesses; it can also be a helpful way to cushion your family against any eventuality.

James Hwang is the editor at Gambling Giant, a website fully dedicated to the gambling industry. He spent 5 years in South Korea studying arts and then switched to a digital nomad lifestyle to travel the world. He adores pizza and Netflix, especially when those two things combined on a Friday night.