SParc, I am imressed with your knowledge.S_Parc wrote:This one is easy. Don't tell anyone and don't sign the back of the winning ticket, since that gives the press your name.
What you do is make a copy of the ticket. Keep the primary ticket in a safety deposit box or fireproof safe. You then get a tax/estate attorney and give him a retainer of $1K minimum. Once you've signed your working agreement and have that in place, you have him create a trust for you and then, make the law office, the sole go between, between the trust and the lottery commission. By attorney-client confidentiality agreement, the law office cannot divulge your information without facing being disbarred. The lottery commission will only have the name, ABC trust, and the law offices of Billy, Bob, and Thorton, That information will go into the public website for the world to see. The press will only see your attorney at the lottery commission for the handling. Once the money is transferred over, pay the law office for all services rendered, probably some $10K to $20K, after everything is said and done.
Then, you make up a bogus story to your friends and family and tell 'em that you've re-located to the 'London Office'. Basically, you go to London to set up your global trading and/or managed accounts. Afterwards, you maintain your home base in the US for the remainder of the year but move to some tax haven as a permanent address. For that first year, you'll have to pay full US taxes on your winnings. Afterwards, you can claim exemption on additional cap gains or income up to $91K, for the rest of your life, as an ex-pat.
From there-forth, you're a free man. Enjoy the world.
One small nuance: for the $91500 per year Foreign Earned Income exclusion, the income has to be earned as salary/wages... OR... schedule C earned self-employment income. AND -- if the latter, cannot be capital gains using CAPITAL, e.g. trading gains. Must be done substantially without capital.
This is an area where a lot of people do it the wrong way (live overseas as a day trader and claim the FEI exclusion). BUT... if you won the lotto, you better do everything right.