TaxConnections Picture - Lottery BallsThree separate lottery winners in the third highest Mega Millions have some tough decisions ahead of the them.

In addition to deflecting requests for money from every person they have ever known (and many they have never even met), will have some “good” problems to deal with like – taxes, investment options, insurance protection and ensuring their after-tax funds outlive them. Unfortunately there are more financial horror stories about lottery winners than happy endings – mainly attributable to the fact winners seldom have any experience handling even moderate sums of money.

Before claiming their prizes, I recommend that they have some in-depth conversations with a qualified attorney, CPA and investment advisor (best if all are in the same room – and are not a relative).

The most pressing issues are:

1) Can I retain my anonymity?

2) Am I a solo winner, or are there other family members and/ or friends/ co-workers that are entitled to a portion of the winnings (and the related taxes)?

3) Should I take a lump-sum or installments? Read More