2006-11-10 08:17:53 · 8 answers · asked by Anonymous in Games & Recreation ➔ Gambling
In most lottery states the Cash Option is best, reason being that if you die before you get all the yearly payments then that money goes back to the state you cannot will it or give the payments to anyone. If you take the lump sum then they take the taxes out of it right away and you have a lump sum of money to invest or give away or spend whatever way you see fit....
2006-11-10 08:27:03 · answer #1 · answered by Scooter Girl 4 · 1⤊ 0⤋
.Not sure about Texas, but typically its better to take the payout. The biggest reason is you have more money at one time and you can do more with it. The second reason is your not sure what the tax base will be in say 20 years so what maybe 100,000 now maybe only be 50,000 in the future. Also some states lottery isn't transferable so if you passed away you could be defaulting on your money to your heirs.
2006-11-10 08:29:25 · answer #2 · answered by Victor S 2 · 0⤊ 1⤋
if you ar under 40, yearly payments, if over 40, cash sum. chances of you living to get all the payments are slim the older you get.
2006-11-10 08:26:13 · answer #3 · answered by Anonymous · 0⤊ 1⤋
I'd take yearly payments. That's at least something guaranteed for quite a while, and you wouldn't be as tempted to spend it all at once.
2006-11-10 08:27:44 · answer #4 · answered by Morning Glory 5 · 0⤊ 1⤋
i think that i would take the yearly payments, i was always told they take on more taxes when its a lump sum
2006-11-10 08:26:09 · answer #5 · answered by bshelby2121 6 · 0⤊ 1⤋
take the lump sum. you pay all the taxes at once, but you also get all your winnings at once. what if you die next year? you'll never get to take advantage of all that money!
2006-11-10 08:25:47 · answer #6 · answered by adrianne 2 · 2⤊ 0⤋
IF YOU'RE YOUNG TAKE THE YEARLY MORE $ IN THE LONG RUN.
2006-11-10 08:26:27 · answer #7 · answered by Redda 6 · 1⤊ 0⤋
ONE HUGE LUMP SUM WOULD BE THE BETTER CHOICE
2006-11-10 09:17:48 · answer #8 · answered by lita 5 · 0⤊ 0⤋