(Newswire.net — June 26, 2022) –Winning the lottery is an exciting time. Not only are you eagerly looking forward to collecting your winnings, but you’re also considering what to do with all your new money. Before you consider these things, it’s important to think about the legal implications of winning the lottery. Here are 5 reasons why you need to hire a tax attorney after winning a lottery.
1. Help Minimize Taxes
Winning the lottery has a major impact on your taxes. Large winnings may be taxed at up to 37% at the federal level, while states may tax up to 15%. This means that over 50% of your winnings may quickly disappear.
A tax attorney can help you minimize these taxes to keep as much of your earnings as possible. This means saving hundreds or even thousands of dollars.
2. Identity Protection
After you win, you will find others want a share of the winnings. Old family members, co-workers, or friends may resurface suddenly wanting to spend time together. If the news is released publicly that you are the winner, you may find people that you don’t know approaching you and asking for money.
It’s important to hire a lawyer who will not only protect you from taxes but also help shield your winnings from private eyes. This will save you a headache both financially and socially.
3. Set up Trusts and Estates
A tax attorney can also help you plan for the future by setting up your estate. Some types of estate planning can help you reduce the taxable amount, while others can help with further protection of your identity.
This also helps protect your money for the future. If something happens to you, you’ll want to make sure the people you care about get your earnings. An attorney can help you set up a different legal entity to claim your earnings or develop a will.
4. Protection from Lawsuits
Quite often after a person wins the lottery, lawsuits begin to arise. Most commonly, other people like a friend or a coworker of the winner will claim you owe them part of the winnings. It’s easy for another person to say you “went in on the ticket together” or that they financially helped you get the lottery ticket in some way. As a result, that person may file a lawsuit claiming you owe them part of the winnings.
5. Networking
A tax attorney can also help connect you with other people who can help. Although attorneys can give legal and some financial advice, they are not financial advisors. An attorney can connect you with other people who can support you after winning the lottery, such as financial advisors and other attorneys.
If you’ve recently won the lottery, you’ll want to hire an attorney quickly. Not only can they help you minimize the money you spend on taxes, but they can also help protect your identity and connect you with other professionals.