Winning The Lottery!
Have you finally hit the lottery after playing for so many years?! Now it comes time to claim your prize at the lottery offices presently located in Braintree but moving soon to Boston, any prize amount over $600.
The process can be a little daunting but exciting nevertheless because you have won, your life is about to change dramatically! However, without planning and providing some shield to your identity, the lottery will publish your name and information about your winnings to the public. Although some may bask in the glory of their winnings, which is certainly understandable, they will soon be tired of the countless financial, insurance and other salespeople looking for the opportunity to manage their money, buy insurance, etc. Not to mention all the friends and family that you never knew you had! They will find you!
In order to help protect individuals and families from this intrusion, our firm has developed a complete service for those who have suddenly found themselves in this exciting but unfamiliar setting.
Process Of Claiming Your Prize
The primary mechanism for shielding the winner’s identity is through the use of “trusts,” entities created, in this case, to claim and manage the prize, specifically what we call “Double-Blind Nominee Trusts” (DBNT).
In order to claim the prize, the ticket must be signed on the back. This, of course, is extremely important because an unsigned ticket is known as a “bearer bond.” That, is, much like cash, whomever has possession or “bears” the ticket is the owner. Thus, once signed, the ticket is no longer a bearer as it has been claimed by its owner. In some states, once the ticket is signed, it is the signer who must personally claim the prize and then receive all of the publicity; however, in Massachusetts, even if the winner signs the ticket, there is still a method by which the signer can assign the right to collect the ticket to another individual, this is where our firm comes in.
Once the ticket is to be assigned, we establish the DBNT whereby the trustee or “manager” of the trust can claim the ticket at the lottery. The trustee is one of our attorneys. It is the attorney who is identified publicly; however, once the public realizes that the attorney is simply a trustee standing in “nominee” for the actual winner, there is no way for the public to determine who the actual winner is. This trust and its proper continued use can shield the winner indefinitely if used properly.
Establishing the DBNT and collecting the proceeds is just one step in the overall management of the lottery winnings.
Management And Growth
When there are larger winning amounts, often individuals who have never been exposed to such wealth do not know how to manage it in terms of preserving the wealth, increasing its value and the ongoing management of the asset. In many cases, clients do not wish to ever be identified and use our ongoing surrogate services to provide continued anonymity and asset management.
We have all heard the stories of the individuals who win a large sum and in a few years the amount is totally depleted. To avoid such tragic circumstances, our firm can provide complete management of the assets while the client enjoys the bounty of their winnings. Through the use of other types of trusts, such management avoids asset depletion, increases the wealth and preserves the wealth for future generations. Often, with higher wealth, in concert with our financial advisers, a “family office” is established to maintain the day-to-day operation of the investment and the ongoing needs of the client.
If you are one of the lucky lottery winners, please contact us to discuss your options before heading out the door to tell all of your family, friends and the rest of the world!