i was just listening on the radio - and this guy who won 85 million from the lottery was talking about how before he did anything - he interviewed a bunch of people to find some lawyers who would represent him and bla bla - and i just dont get why? ... there was nothing weird abotu how he won - and he was given the money and everything. So why need a lawyer?
2007-03-06 02:25:49 · 10 answers · asked by Anonymous in Politics & Government ➔ Law & Ethics
I once heard that even people who work with the lottery will say that your first step after winning the lottery is to get a lawyer. You would probably be walking into brand new territory, unless you were already a millionaire. There are a lot of landmines and traps out there. Lots of predators looking to get their hands on that money. Every person with even a half-baked investment idea will be wanting to talk to the winner. Lot of people will be wanting to sell the person something. Then there are the friends and family that come out of the woodwork and ask for money (even if the winner had never heard of them before). Get a lawyer to help shield you from some of this. Let the lawyer handle the investment people and the salesmen and be a filter to let only appropriate ones get thru. Let the lawyer inspect every single contract, transaction, and deal before you make it to be sure that everything is on the up and up. Let the lawyer be the person that these new friends and family talk to before they get to you. A lawyer is good advice for a lottery winner.
Also, a lawyer can help the person with some tax related stuff. Help make investments to get more out of the winnings. Help set up a corporation to distribute the winnings. There are lots of jobs that a lawyer can do for a lottery winner.
2007-03-06 02:34:27 · answer #1 · answered by A.Mercer 7 · 1⤊ 0⤋
The wise thing to do is to incorporate. That way you have an entity with all the rights of citizenship that "owns" the money, yet that entity doesn't ever have to go to jail, is the first benefit. As the owner of the incorporation, you can be sued as an individual, but not the corporation. Ergo, if there were any outstanding/unresolved issues against the person who won the lottery, that is distinct and separate from the incorporation.
2007-03-06 02:40:05 · answer #2 · answered by Anonymous · 1⤊ 0⤋
Because you want to protect as much as the assets as you can.
That is actually very smart to have help in planning usage for the funds. Many people will just waste the money away. Most people in this situation end up with nothing in the end. There are so many pitfalls. People coming out of the wood work that all of a sudden are your friends. People ... that are all in need... will be hounding you all of the time.
Plus... you do not actually receive the total amount. Taxes will be paid.... and receiving payment needs to be considered... lump sum versus payments...
It would be a nice problem to have.....
2007-03-06 02:35:18 · answer #3 · answered by True B 2 · 2⤊ 0⤋
Because of the complexity in the tax code having a tax attorney help you with the money can save you a ton of money. Depending on the persons need, he might establish a trust, distribute the money, receive it in a certain state, or any number of other things to minimize the amount of money the government takes away from his winnings.
2007-03-06 02:33:00 · answer #4 · answered by michael q 2 · 4⤊ 0⤋
Probably to keep the hounds away. He will probably need them to go over any contracts he signs to make sure he's not being taken. People who suddenly come into lots of money sometimes aren't exactly smart in what to do with it. Frankly I think it would be a waste of money, but if it makes him feel better, then who am I to judge?
2007-03-06 02:33:54 · answer #5 · answered by kj 7 · 1⤊ 0⤋
To make sure he keeps most of it. The Govt. Taxes all winnings If you have a Tax Lawyer, they can work out ways for you to keep your winnings. I would do the same thing.
2007-03-06 02:34:48 · answer #6 · answered by Kier22_2 6 · 1⤊ 0⤋
Could be divorced or some one may sue him or he is currently in a lawsuit.....with that much money he would also need a will......If I had won...I would just stick it an high interest account and live off the interest.
2007-03-06 02:35:01 · answer #7 · answered by Anonymous · 1⤊ 0⤋
With the complicated tax laws we have now, if you win you better get a lawyer. the IRS will have you in court for the next five years bleeding you for every cent of it.
2007-03-06 02:38:54 · answer #8 · answered by bamafannfl 3 · 2⤊ 0⤋
Also, the vultures will be out looking for a way to seperate him from his money. Remember the guy from WV?
2007-03-06 02:33:49 · answer #9 · answered by Ben H 5 · 2⤊ 0⤋
A lot of reasons, from taxes to his will.
2007-03-06 02:29:45 · answer #10 · answered by History Buff 2 · 4⤊ 0⤋