Brief Summary
In this interview, Kurt Panouses, a lottery attorney and CPA, shares his expertise on handling lottery winnings, focusing on anonymity, financial planning, and avoiding common pitfalls. He discusses the importance of seeking legal counsel before claiming a jackpot, the complexities of state lottery laws, and strategies for managing wealth to ensure long-term financial security.
- The first call with a jackpot winner involves counseling and emphasizing the importance of keeping the circle small.
- Anonymity is key to long-term success, and strategies vary by state law.
- Lump sum payouts are often less than half the advertised jackpot due to interest rates and taxes.
- Proper financial planning and investment are crucial to avoid going broke after winning.
Intro
The host introduces Kurt Panouses as a lottery attorney and CPA who has represented numerous jackpot winners, including a billion-dollar ticket holder. Panouses emphasizes the importance of anonymity for lottery winners and uses his expertise in both law and accounting to help clients navigate the complexities of claiming and managing their winnings.
Who Is Kurt Panouses?
Kurt Panouses discusses his background, transitioning from wills, trusts, and estates to focusing on lottery winners. He finds his current practice more enjoyable due to the positive nature of his clients' circumstances. Panouses clarifies that while often referred to as a "lottery attorney," he prefers "lottery attorney and CPA" to highlight his dual expertise. He cautions against the title "lottery lawyer" due to a past incident involving an attorney who mishandled client funds.
How The First Call Goes With A Jackpot Winner
Panouses describes the initial contact with lottery winners as emotionally charged, requiring him to act as a counselor first. He advises winners to keep the circle of people informed about their win as small as possible and emphasizes the importance of trust. He focuses on developing a results-oriented, forward-thinking plan that includes identifying who the winner wants to help and how to structure the claim to minimize taxes.
Representing A $1 Billion Jackpot Winner
Panouses recounts representing a billion-dollar jackpot winner in Michigan, where state law required lottery claims to be made by a natural person. To maintain anonymity, he formed a club, a non-corporate entity, to claim the prize. This approach was approved by the Michigan Attorney General's office, allowing the winners to remain anonymous while complying with state regulations. He emphasizes the importance of understanding state laws and tailoring strategies to each specific situation.
"They Can't Live Their Life Anymore"
Panouses discusses the emotional toll winning a large jackpot can take on individuals. Clients often feel overwhelmed and scared, struggling to cope with the sudden change in their circumstances. He shares an anecdote about a client who was so anxious about holding the winning ticket that they refused to leave it in their hotel room, highlighting the level of discomfort and fear that can accompany such a significant win.
Don't Sign The Ticket
Panouses advises against signing the lottery ticket immediately, as it can compromise anonymity. Instead, he recommends making copies of the front and back of the ticket and taking a selfie with it for proof of ownership. He suggests storing the ticket in a safe deposit box until the claim process begins, emphasizing the importance of keeping the ticket secure and preventing it from being lost, stolen, or damaged.
The Problem With Participating In Lottery Office Pools
Panouses expresses his disapproval of office lottery pools due to the numerous potential issues that can arise. He highlights problems such as disagreements over how winnings are distributed, whether to reinvest smaller wins, and what happens when someone misses a week. He notes that many office pool disputes end in litigation, often resulting in settlements that reduce the overall winnings for everyone involved. He advises that if participating in a pool, clear rules must be established and consistently followed.
Why Purchasing A Lottery Ticket Online Can Be a Bad Idea
Panouses cautions against purchasing lottery tickets online, citing issues such as gambling problems and the association of one's name with the purchase. He shares a story of a client who was denied their winnings after having previously signed up for a state's gambling problem list. Additionally, buying tickets online leaves a digital footprint, making it harder to maintain anonymity.
Reasons A Jackpot Can Be Withheld From The Winner
Panouses explains various reasons why a state might withhold a jackpot from a winner, including outstanding debt or a conflict of interest due to a family member working for the state lottery. He notes that each state has its own specific rules and regulations regarding eligibility for claiming lottery prizes.
Lottery Insider Cheats The Drawing, Wins Jackpot
Panouses recounts a case where a lottery insider in Boston manipulated the drawing by using lighter balls, resulting in a fraudulent win. This incident led to concerns about the integrity of the lottery system and emphasizes the importance of transparency and security measures. He describes his visit to the Florida Lottery's drawing room, where multiple machines are tested to ensure randomness.
Staying Anonymous After Winning The Jackpot
Panouses discusses the possibility of staying anonymous after winning a lottery jackpot, emphasizing that it depends on state law. He explains that while some states claim anonymity is not possible, he has successfully claimed prizes anonymously by using trusts or LLCs to represent the winner. He cautions that even in states where anonymity is allowed, public record laws may still allow for the release of certain information.
Lump Sum Vs Annuity Payout: How Politics Plays A Role
Panouses discusses the decision between taking a lump sum or annuity payout, noting that the lump sum is often significantly less than the advertised jackpot due to lower interest rates. He explains that current interest rates affect the state's ability to invest funds, impacting the cash amount available. He generally recommends taking the lump sum to pay taxes at the current rate of 37%, as future tax rates could be higher.
What Percentage Of The Jackpot Do you Actually Get After Taxes
Panouses breaks down the actual percentage of the jackpot a winner receives after taxes. He explains that after federal and state taxes, which can total around 42%, a $500 million jackpot might result in only $145 million. He advises winners to invest wisely and live off a small percentage of the winnings to ensure long-term financial security.
Making Money Off The Jackpot, Without Touching Winnings
Panouses advises winners to invest their winnings in secure investment funds and live off the investment income, rather than spending the principal. He suggests aiming for a 4% return, which could provide almost $6 million a year on a $145 million jackpot, allowing the winner to maintain their wealth while enjoying a comfortable lifestyle.
How Sending $$ To Family Can Go Horribly Wrong, NDAs/Divorce etc.
Panouses warns against gifting large sums of money to family members without proper planning. He highlights potential issues such as divorces, relationship problems, and gift tax implications. He advises conducting thorough due diligence on the recipients' relationships and using non-disclosure agreements to protect the winner's identity and assets.
Quick Pick Vs Personally Selected Numbers: Which Wins More Often?
Panouses notes that the odds of winning with Quick Pick versus personally selected numbers are about 50/50. He shares a story of a client who spent a significant amount of money each week on lottery tickets with carefully chosen numbers, emphasizing that everyone has their own approach to playing the lottery.
Do Lottery Jackpot Winners Believe In God?
Panouses discusses whether lottery winners tend to believe in a higher power, noting that most feel blessed in some way when they win. He mentions that some people call him regularly, claiming they know they will win based on dreams or other mediums, but he has never received a follow-up call from them after a win.
Worst Luck! Lottery Player Out Millions Do To Schedule Change
Panouses shares a story about two friends who had been buying lottery tickets with the same numbers for years. Due to a change in the Powerball drawing schedule, they accidentally bought tickets for the wrong day, missing out on a couple hundred million dollars. He considers this one of the unluckiest scenarios he has encountered.
Does Nation's Top Lottery Attorney Play The Lottery Himself?
Panouses admits that he does play the lottery occasionally, usually when the jackpot is close to $100 million. He prefers to play Mega Millions and typically buys a Quick Pick ticket. He jokes that his wife believes he has won so many times for other people that he could easily claim a jackpot without anyone knowing.
Top Dos and Don'ts after Winning The Lottery Jackpot
Panouses outlines his top dos and don'ts for lottery winners. The most important don't is to avoid signing or marking the ticket. He advises keeping the circle of people informed as small as possible, hiring an experienced attorney, and assembling a team of financial advisors and CPAs. He recommends budgeting about 2% of the winnings for professional fees.
The Process of Getting Money After Winning
Panouses describes the process of claiming the lottery prize, noting that he typically conducts initial consultations via Zoom or phone. He emphasizes the importance of setting up the right financial structures and working with familiar financial institutions to avoid delays. He mentions that he often meets clients in person for the first time on the day of the claim.
How Fast Can You Get The Jackpot After Winning?
Panouses explains that the timeline for receiving the jackpot varies by state. Some states issue a check on the same day, while others may take a week or two. California, for example, can take up to eight weeks. He prefers wire transfers over mailed checks due to the risk of mail delays or loss.
How Do People Go Broke After Winning The Lottery Jackpot?
Panouses discusses the reasons why lottery winners go broke, including bad investment decisions, excessive spending, and divorces. He stresses the importance of staying involved with clients and monitoring their investments to prevent them from making poor choices. He advises against investment strategies that prioritize creating losses for tax purposes, as lottery winners typically lack capital gains to offset those losses.
Day In The Life Of A Lottery Attorney
Panouses describes a typical day in his life, starting with checking his two cell phones for calls from potential clients. He monitors lottery results to anticipate calls from jackpot winners and reviews state rules to prepare for consultations. He also answers numerous calls from people with lottery-related questions, viewing it as part of building good karma.
How A Lottery Attorney Would Spend The Jackpot If They Won
Panouses shares how he would handle winning a $100 million jackpot. He would represent himself, claim the prize through a family trust to avoid gift taxes, and ensure the assets are protected against future relationship issues. His one luxury would be to fly private to avoid the hassles of commercial airports.
