The Mega Millions jackpot amounts to $ 850 million. How to deal with a nuisance

Again, the Mega Millions jackpot catapulted above.

The biggest prize is now the staggering $ 850 million – the third largest in the history of the lottery – following a ticket that does not match all the numbers drawn on Friday night. Then there’s Powerball: its jackpot is estimated at $ 640 million for Saturday night’s draw.

Of course, the odds of winning any of the games are not in your favor: the chance that a single ticket will match all six numbers is 1 in 302 million for Mega Millions and 1 in 292 million for Powerball.

However, it is worth considering how you would cope with such a heart if you were to beat the odds.

Jackpot winners usually get six months to a year to claim their prize, depending on the state in which it was purchased. In general, this means that you do not need to rush to the lottery.

In other words, the winners should take a deep breath.

Anyone who gets to hit any jackpot should be prepared for a roller coaster of emotions.

Experts say that once the initial thrill of winning the jackpot disappears, their careless magnitude can set in.

“For anyone facing a newly created wealth … there are feelings of dislocation and the feeling of being overwhelmed,” said Valerie Galinskaya, general manager and head of the Merrill Center for Family Wealth.

Of course, you don’t have to go alone.

Given the sheer size of these jackpots, winners should gather a team of experienced professionals – including a lawyer, CPA and financial advisor – to help them navigate the unforeseen.

“You want to hire the right counselors to provide not only good advice, but advice tailored to your needs and desires,” Galinskaya said.

You should make a copy of the ticket, put it in a safe place – that is, a safe or a bank deposit – and resist the urge to share your news with everyone in your life.

“Don’t get in touch with people about it right away, except for your immediate and trusted family,” said certified financial planner Jim Shagawat, a New Jersey partner advisor at AdvicePeriod in Los Angeles.

In addition, you should protect your identity when claiming the jackpot, if possible. While standard advice is to sign the back of the note, this could interfere with remaining anonymous if state laws allow you to create a trust or limited liability company to claim the benefit instead of doing so. in own name.

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If your state laws require your name to be made public, it’s worth preparing how to respond if others bring you up, Galinskaya said.

“You say, ‘I’m very grateful and we’re still working on what it means to us,'” she said.

For the $ 850 million Mega Millions jackpot, the cash option – which most winners choose instead of an annuity – is $ 628.2 million.

However, before that is reached, 24% – or $ 150.8 million – will be withheld for federal taxes. You could also count on Uncle Sam’s much more debt due to the higher marginal rate of 37% that applies to incomes over $ 523,600 for individual taxpayers and $ 628,300 for married couples filing together. Also, state taxes are usually due.

For the $ 640 million Powerball jackpot, the lump sum option is $ 478.7 million. The 24% withholding tax would be approximately $ 114.9 million. And, again, he owed more.

One way to reduce your tax bill is to think charitably. Basically, the government gives you a tax cut if you use private money to do good to the public.

“It’s not just about what you want to do for yourself and your family, it’s also philanthropic,” Galinskaya said.

You can contribute cash, up to 60% of your adjusted gross income, to a public charity or a donor-advised fund, and you can get a tax deduction for the amount of the year you donate. You can also create a private foundation, donate income to it, and then determine how to hire it over time.