Here’s a question that just came our way that we’ll put in the “oldie-but-goodie” category because it’s something we’ve been asked a lot through the years. Maybe you’ve wondered about it, too: What happens to my winnings if I die?
Some people seem to worry that their lottery winnings will go away if they choose the annuity option and should pass away before the final payment has been made. But in fact, in that situation, the prize money goes into that person’s estate.
When we receive word that a winner receiving annuity payments has died, that information is documented in the winner’s file. The lottery then makes payments to those listed in the terms of the winner’s estate or as determined by a court order.
Hi, Larry. If you choose the annuity option, it is not a set amount each year that you would receive. That is because the annual prize payment increases over time to account for factors like inflation. The prize payments increase 5 percent each year until the 30th and final payment.
Posted by: Mary Neubauer | July 11, 2018 at 09:07 AM
If I win $300m and take the 30 year annuity how much will each year payment be approximately after taxes?
Posted by: Larry E. Mcgrane | July 09, 2018 at 08:22 PM