A LUCKY lottery player recently won a huge $15 million jackpot, but only managed to take home a fraction of the winnings.
Massachusetts State Lottery officials recently revealed that the top winnings were claimed last week — and the winner will remain a secret for now.
On June 13, the LJS Trust of Quincy claimed the prize of US$ 15 million that was won in the “300X” scratch card.
Each ticket for the game costs around $30.
The massive victory is reportedly the largest recorded in the state so far in 2024, according to Live dough.
The winning ticket was purchased at Country Farms, a convenience store located at 20 Main St. in Topsfield, Massachusetts, about 28 miles north of Boston.
The store will also receive a $50,000 bonus for recent ticket sales.
The big winner, represented by administrator David Spillane, chose to take home his winnings in a lump sum payment.
This left them with a prize of $9,750,000 before taxes.
While opting for this one-time payment allows lottery winners to have immediate access to the majority of their winnings, it means the prize is a smaller amount.
Alternatively, winners can choose to receive their winnings in an annuity, i.e. annual incremental payments that typically occur over 30 years.
No matter which option winners choose, most lottery winnings are subject to state and federal taxes.
In Massachusetts, prizes worth $5,000 or more are taxed at approximately 24% in federal taxes and an additional 5% in state taxes.
Winning a huge prize like $15 million can be daunting for unexpected winners, often due to increased media attention.
Depending on the state you live in, you may be able to remain anonymous if you win the lottery big.
Only 11 states allow lottery winners to remain anonymous when collecting their winnings, including Arizona, Delaware, Georgia, Kansas, Maryland, New Jersey, North Dakota, Ohio, South Carolina, Virginia and Texas.
Other states, like Massachusetts, allow winners to claim their prizes by creating a trust.
Lottery winnings: lump sum or annual fee?
Players who win big on lottery tickets typically have a choice to make: lump sum or annual fee?
Both payment methods can affect how much money you receive from your prize.
Annuities are paid slowly in increments, usually over 30 years.
Lump sums are paid all at once, but in smaller amounts since taxes are withheld all at once. This means 24% of your prize goes to Uncle Sam immediately. Many states also tax earnings.
Annuities can give winners time to create the financial infrastructure needed to receive a life-changing amount of money, but lump sums have the advantage of being taxed only once.
It’s also worth considering inflation when making a choice, as payments don’t adjust to the value of a dollar. This means you will likely receive less valuable money at the end of an annuity.
Each state and game pays prizes differently, so it’s best to check with your state’s lottery to confirm payment policies. A financial advisor can also help you weigh the pros and cons of each option.
Experts have differing opinions on the possibility of take the fixed amount or take the annual fee.
Winners can then ask an administrator to take the winning ticket to state lottery headquarters to collect the funds.
The administrator will deposit the money into a bank account opened for the winner.
“Prizes may be claimed by a trust or other legal entities that meet the definition of a legal entity,” Mark William Bracken, Executive Director of the Massachusetts State Lottery, told MassLive.
Although the administrator’s identity is publicly available, this still allows the winner to remain a secret.
“In recent years we have seen an increase in the number of large prizes claimed by trusts,” Bracken told the outlet.
The US Sun previously reported that in Maryland a winner recently took home $2 million and chose to remain anonymous.
Meanwhile, another winner in Massachusetts used a fund to raise $1 million after winning in February.
This story originally appeared on The-sun.com read the full story
