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If you won a jackpot, how mcuh would you give to your parents?

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Say you won a 40 million dollar annuity jackpot.  If you could split the money, how much would you give to your parents?

 

Does the lottery commissions even allow splitting the prize? 

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I don't know if I would split the jackpot, but I would offer to pay medical expenses, property taxes (no mortgage), buy groceries, etc.  Same thing with my grown kids. I'm not sure how to avoid the gift tax this way, but I think it would take longer to reach that max before it kicks in if you do it this way. I also think certain expenses are exempt from the gift tax - like medical expenses and college tuition.

As to splitting jackpots, I think you have to have something in writing before the jackpot hits before they consider it something other than a gift. I already have a living trust, so I would claim it in the trust name and see how my advisors would best help minimize taxes.

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Well let's make it fun and consider this MegaMillions drawing: $128M. In Ohio, I'd actually see just about $50M even after the cash buyout and taxes.

I'd use about $1M to buy myself a new house and property, and pay off the mortgages of my parents and both grandparents. I'd pay off the rest of the debt of my parents, grandparents and sister. I'd buy all seven of them a car.

My parents don't need or want a new house because they just  built their dream home last year. My grandparents are old and have no interest in moving at this age, but if they did want to, I'd pay for new houses. My sister does not need nor want a house at this stage in her life but when she's done with her job/school situation she will get a new house. This can all be done for about $1-1.5M.

The rest of the money becomes principle.

ThatScaryChick's avatar - giphy11resized
In response to JWBlue

It all depends how much I win, but whatever the size 15 million or 200 million, I plan on taking care of my mother. She will be able to retire, travel, buy what she needs or wants. I want her to be taken care of for the rest of her life. That's what I've always wanted to do and will do if I win a big jackpot one of these days.

DC81's avatar - batman39

Something reasonable along the lines of paying off debt with some money left over, as well as a house. If I were to give a cash gift, it would be something annual but it would not be anywhere close six figures and likely just up to the exception but maybe more but I would not want to become anyone's piggy bank that bails out family left and right, even for my own mother.. I think the worst thing you could do is give someone a lot more money than they're accustomed and can handle, keep that "burden" on yourself.

I could just see the thought process now consisting of "oh I can't afford this but I'll get it anyway because _____ will take care of it for me."

mymonthlypicks's avatar - spider
In response to Piaceri

I believe if I clam the tickets together, lets say 4 ways Myself. wife, and my 2 Daughters then the taxes is taken out up front still may a little taxes at year end. then I won't have to worried about gift tax after my passing. I would hate to see them taking away most of the money from my Daughters because of my passing and would rather let them enjoy the money while I'm here on earth

Guru101's avatar - rw6jhh

Probably along the lines of $1.5 million.

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Not a penny for either of them.But if they were still living I'd buy them whatever their hearts desired.

And I wouldn't take an annuity.The cash option makes more sense at my age.

charmed7's avatar - Lottery-013.jpg

Being that both my parents have gone on to greener pastures, and

all my siblings have gone on to join them.  The jackpot would b

btw me and my better half.  I would give the grown-up brats

something for their nest egg.  And move out of state.

JackpotWanna's avatar - squiz

My parents don't believe in the lottery.  They say if I ever be so lucky to win one, they didn't want to be apart of it.  My whole family doesn't play.   I'm the only one that do play but also the poorest. lol.  I guess my answer to this question would be zero right now, but keeping an open mind.  Smile

Set4life's avatar - 2554

I would probably give them half,  makes me happy and makes them more happy lol. 

Litebets27's avatar - power

My parents are no longer living. But I'd think of your question in these terms.

HOW MUCH WOULD YOU WANT THEM TO GIVE YOU IF THEY WERE TO WIN AND YOU DIDN'T?

Then, that's how much you should give them.

Coin Toss's avatar - shape barbed.jpg

People have great intentions with fantasies of winning jackpots and giving away part of them, but thye must really look into this kind of thing before they make a move.

You may want to give away over a million, but if you find out it may cost you anywhere from $50,000 to $200,000 to do so you may have second thoughts.

In the book Infinite Financial Freedom:  What to do Before and after You Hit the Lottery, the author, Bob Sanford, give examples of one winner who just gave money away, and another who set up a trust for someone they wanted to give money to.

The recipient of the trust recieved a lot more money in the long run.

Also, on one of the Loto Changed My Life documentaries, one of the jackpot winners said he gave several people a million dollars each- and every one of them blew it all and came asking for more. Just something to keep in mind.

diamondpalace's avatar - Untitled 2.jpg

30%

Elizabeth03's avatar - Lottery-009.jpg

My mother (my adoptive mother) and I fight like cats and dogs, so I wouldn't give her a huge amount.. Some to pay her bills and take a vacation, that's about it..

 

Frankly, I want to go on a vacation now, because I am stressed out, so I'd do that and buy a house..

 

And make some needed changes to my life, pronto!Coffee

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