Most of us understand that the odds that we hold the winning ticket are roughly one in a million gabillion trillion. Or they might as well be, given that the real chances are one in 292.2 million.
Here are six things to do if you do happen to win the big jackpot.
1. Practice your poker face
Until you’ve gone through the rest of this list, it’s probably a good idea to keep this whole “Dude! I’m filthy rich!” thing under wraps. According to lottery rules in most states, once you come forward and claim the dough you sign away your right to complete privacy.
It’s also a good idea to change your phone number, put an extra lock on your front door and move the garden gnomes inside so that reporters and ne’er-do-wells don’t trample the little guys and walk in on you rolling around on a carpet of $100 bills.
2. Review your family tree, prenup
People can be awful and deceitful when obscene amounts of money and your mug are suddenly front-page news. There’s nothing worse than dealing with a stream of “long-lost ninth cousins thrice removed” and scamsters beating a path through those decorative gnomes to get to your doorstep.
Some estate planning basics should be on everyone’s “to do” list. Pull paperwork for any assets you might have (IRAs, 401(k)s, bank and brokerage accounts, and life insurance policies) and make sure your beneficiary designations are in line with your wishes.
Another way to keep the wolves in line – and your anonymity intact in some states – is to set up a trust.
3. Hold off on counting your millions just yet
Easy come, easy go – at least when it comes to advertised lottery winnings vs. actual lottery winnings. The $1.3 billion advertised value of the Powerball payout is what you’d get if you opt to stretch your winnings over 30 annual payments. If you choose to receive the spoils of victory all at once, have your Sharpie handy when you’re handed that giant cardboard check. The lump-sum payout would be $806 million – minus, of course, a sizable tax bill, which leads us to …
4. See if you’re also lucky about which state you live in
Residents of Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming pay no state income taxes. Pennsylvania and California exempt lottery winnings from income taxes (in California, that applies only if you buy the ticket in-state).
