A LUCKY player scored a life-changing lottery win but walked away with just half the prize after a crucial decision.
The winner, a beekeeper by trade, won a $1 million prize in a lucrative state scratch-off game.
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North Dakota resident Mason Maxwell, 47, was in Florida – where he lives in the summer – when he decided to buy a Diamond Mine 20X ticket at a SunStop gas station, for a Press release of Florida Lottery employees.
The gas station was located off Highway 441 in Lake City, about 61 miles west of Jacksonville.
After scraping the ticket off his car last June, the part-time resident discovered he was doing just fine.
The ticket revealed a $1 million prize, in what officials dubbed an “incredible win for BEE”.
At just $10 per ticket, Mason got a great return on investment.
Mason later went to Florida Lottery headquarters in Tallahassee to withdraw his winnings, as required for amounts totaling $1 million or more.
The beekeeper was then faced with a decision that would have a significant impact on the money he had earned.
He could choose to receive the funds through a lump sum distribution or annuity payments over what would likely be 20 years or more.
Annuity payments are a viable option for many lottery winners because of the consistent, reliable money each year, but they can also avoid significant tax implications.
Mason opted to receive the money all at once via a lump sum, which meant he had almost half of his earnings taken away immediately due to taxes.
TAX TURBULATION
The federal government always imposes a 24% tax on lottery winnings over $5,000.
States, however, decide the taxable rates on the funds, and fortunately for Mason, Florida does not tax lottery winnings.
Still, the 24% rate was a significant amount.
The beekeeper left with around US$695,000, with US$305,000 withdrawn.
It can be argued that Mason was probably still excited about winning, but reinforced that every lottery winner should seriously consider what is best for their situation – lump sum or annual payment.
There are benefits to both, as Mason has the freedom to take that money and invest it, save it, or put a significant amount where he wants, rather than being tied down to annuity payments.
Top US Lottery Winners
Millions dream of winning the lottery and finding fame and fortune. These are the biggest winners in US lottery history.
- Edwin Castro – $2.04 billion, Powerball, November 8, 2022, in California.
- Theodorus Struyck – $1.765 billion, Powerball, October 11, 2023, California.
- Unknown Winner – $1.602 Billion, Mega Millions, August 8, 2023, Florida.
- Marvin and Mae Acosta of Los Angeles, California, John and Lisa Robinson of Munford, Tennessee, and Maureen Smith and David Kaltschmidt of Melbourne Beach, Florida – $1.586 billion, Powerball, January 13, 2016.
- Winner unknown – $1.537 billion, Mega Millions, October 23, 2018, from South Carolina.
- Winner unknown – he sued his child’s mother to keep his identity hidden – $1.348 billion, Mega Millions, January 13, 2023, from Maine.
- Unknown Winner – $1.337 Billion, Mega Millions, July 29, 2022, from Illinois.
- Winner unknown – $1.326 billion, Powerball, April 7, 2024, from Oregon.
- Yanira Álvarez – $1.08 billion Powerball, July 19, 2023 in California.
- Wolverine FLL Lottery Club – $1.05 Billion, Mega Millions, January 22, 2021, from Michigan.
- Winner unknown – $842.4 million Powerball, January 1, 2024, from Michigan.
Another argument for those who decide on a lump sum could be that life is sometimes short and can end before all the payments arrive to be used for whatever they wish.
KEEP IT CONSISTENT
Andrew Stoltmann, a lawyer who has worked with at least 10 lottery winners, told The US Sun that he still sees downsides to the lump sum and would advise paying annuities.
Most notably, Andrew said many lottery winners “don’t have the infrastructure” to handle the large amount that comes with a multimillion-dollar prize.
He said many winners also come from “lower socioeconomic backgrounds” and have not received financial education to manage money.
“So they take this huge amount of money and they just don’t know what to do with it,” he told us.
“It’s a big mistake.”
For more related content, check out The US Sun’s coverage of a lottery winner recently arrested for winning $1 million.
The US Sun also tells the story of a player who was just minutes away from losing a $30,000 lottery prize.
This story originally appeared on The-sun.com read the full story
