There is now almost half a billion dollars in the Mega Millions jackpot.
With no ticket matching all six numbers drawn on Tuesday, the game’s top prize has exploded to $ 490 million for Friday night’s draw. The Powerball jackpot is not far behind: $ 410 million for Wednesday night’s draw.
If you’re daydreaming about how you would use a windfall of such magnitude, be it buying high ticket items or funding a charity (or both), keep in mind that winning is not as easy as claiming the money and getting on with your life.
“Your old life is over,” said Walt Blenner, an attorney and founder of Blenner Law Group in Palm Harbor, Florida. “You can’t go back to it.”
For the Mega Millions jackpot of $ 490 million, the money option – which most winners choose instead of an annuity – is $ 372.3 million. For the Powerball prize of $ 410 million, it’s $ 316.4 million.
Aside from the financial side of the windfall – which involves things like taxes, investments, and estate planning – there are some other issues that big lottery winners can face, sometimes before even claiming their prize.
“On the one hand, it’s a fantastic experience, but on the other, it can involve necessary changes that can cause anxiety,” said Blenner.
Your safety
Depending on the state in which you purchased the ticket, you may not be able to remain anonymous, creating a whirlwind of public attention – and that’s not guaranteed to be all transient or harmless. Even if you can protect your identity, it’s possible that somehow the word could leak that you were (or could be) the winner, Blenner said.
Representing the winner of a $ 451 million Mega Millions jackpot in 2018 – then 20-year-old Shane Missler – Blenner had to pressure Missler and his family to disappear before the public found out who (in Florida, lottery winners cannot remain anonymous).
It took me a while to see the potential danger they would face if they stayed in their home.
Walt Blenner
Founder of Blenner Law Group
They were hesitant, so he eventually told them ransom and kidnapping insurance was available. That dawned on them, and they rented a house 20 miles away under an alias.
“It took me a while to see the potential danger they would face if they stayed in their house,” said Blenner.
Even getting the winning ticket to lottery headquarters was done with safety in mind: Blenner and Missler took a private jet to Tallahassee, and lottery officials met them on the tarmac to collect the ticket.
Your day job
When you get into extreme wealth through the lottery, it usually makes sense to quit your day job, Blenner said.
“You don’t need that income, and if you have a job you could identify where you are, which could be a greater security risk,” he said.
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After Missler hit the $ 451 million jackpot, Blenner was approached by complete strangers.
“For almost six months I received emails, letters and phone calls,” he said.
The messages came from a variety of people: people offering something for sale (real estate, a private plane, for example), investment advisers looking to manage the money, and individuals struggling financially and seeking help.
Exposure to lawsuits
Whether you can remain anonymous or not, by actually spending the money you can reveal your newly acquired wealth.
This means that bogus claims against you are more likely if others think you have deep pockets. For example, someone might bump into your car on purpose in hopes of collecting it, Blenner said.
“When there is extreme wealth, you are an excellent candidate for such a thing,” said Blenner.
He said it is important to have insurance to protect you from such potential claims.