[Cheapbas]

Originally Posted by OrangeBlossomBaby

Florida doesn't impose tax on lottery winnings. I believe you can "gift" up to $25,000 per year, to any individual(s) you want, without them having to declare it as income. You also can't write it off as an expense, but if you donate to a registered charity you can write it off as a charitable contribution on your year-end tax return.

I checked with OmniCalculator and see this:

With a $984 million megamillions winning ticket, the lump sum payout would be $511,680,000.

Federal taxes would be $189,729,688.

So your net payout would be $321,950,312

Over a quarter of a billion dollars. Pretty sure when you win THAT big, you don't have much need to worry about taxes. You can afford to pay them. If you bought a summer home up north by a lake, upgraded your house here in The Villages, got a comfy adobe in Santa Fe for ski weekends, and spent a month every year in Venice Italy, bought yourself a new car and his-and-hers custom golf carts, you'd still have around $200 million after 10 years. You can give $25,000 to your son, AND his wife, AND each of their three kids, and your daughter, and HER husband, and THEIR twin boys, AND pay for your mom's long-term memory care housing and medical bills that medicare doesn't cover, and still have over $100,000 million left over. You can live off the interest of that and die with enough to set your kids and grandkids up with a nice cushion for their own - and THEIR grandchildren's lives.

The gift might be only $18,000 per year. UMTA is up to $18k/year for minors tax-free but the kid can't touch the money until he's at least 18 (up to 25, depending on how the paperwork is filled out when the account is created).

Actually both you and your wife can gift identical amounts.