Congratulations—you've just won the lottery! But before you start celebrating, there are critical steps you must take to protect yourself and your newfound wealth. What you do in the first 24-48 hours can mean the difference between financial security and becoming a cautionary tale.
The Harsh Reality
Studies show that about 70% of lottery winners go bankrupt within a few years. Many experience depression, broken relationships, and even physical danger. Following a careful plan is essential to avoid these outcomes.
The First 24 Hours: Critical Steps
Stay Calm and Tell No One
This is the hardest but most important step. Do not tell anyone except your spouse or partner (if applicable). Every person who knows increases your risk of:
- Requests for money from friends and family
- Scammers and criminals targeting you
- The news leaking before you're prepared
Practice saying "I need to think about it" to any request. You'll need this phrase often in the coming months.
Secure Your Ticket
Your winning ticket is a bearer instrument—whoever holds it can claim the prize.
- Sign the back immediately (unless pursuing anonymity through a trust)
- Make multiple photocopies of both sides
- Store the original in a bank safe deposit box
- Consider a fireproof safe at home for a backup copy
Take Time Off (Quietly)
If possible, take vacation or personal days from work. You'll need time to think clearly and assemble your team of advisors without the distraction of daily life.
Don't quit your job yet—this is a classic mistake that draws attention.
Document Everything
Start keeping detailed records from day one:
- Where and when you bought the ticket
- Receipt if you still have it
- Photos of the ticket and any documentation
- A journal of your decisions and reasoning
Assembling Your Team of Advisors
Before claiming your prize, you need professionals who specialize in sudden wealth. This is not the time for your regular accountant or family lawyer.
Attorney
Find an attorney experienced in:
- Estate planning
- Tax law
- Asset protection
- Trust formation
They can set up trusts or LLCs for claiming anonymously where allowed.
Financial Advisor
Look for a fee-only fiduciary who:
- Doesn't earn commissions on products
- Has experience with high-net-worth clients
- Specializes in sudden wealth
- Can coordinate with your other advisors
Tax Professional
Essential for:
- Minimizing tax burden legally
- Quarterly estimated payments
- Multi-state tax issues
- Gift and estate tax planning
Insurance Agent
Protect your assets with:
- Umbrella liability policy
- Increased home/auto coverage
- Possible security consultation
Expect to pay significant fees for quality advice—but remember, poor advice on a $100 million jackpot could cost you tens of millions. Good advisors pay for themselves.
Protecting Your Privacy
Going public with a lottery win can be dangerous. Winners have been targeted by criminals, kidnapped, and even murdered. Privacy should be a priority.
States Allowing Anonymous Claims
As of 2025, these states allow winners to remain anonymous:
Trust or LLC Claims
In states requiring disclosure, you may be able to claim through a trust or LLC:
- Do NOT sign the ticket until your attorney sets up the entity
- The trust/LLC name appears on public records, not yours
- Some states prohibit this or require beneficial owner disclosure
- Work with an attorney before purchasing tickets if planning this strategy
Mistakes That Destroy Lottery Winners
1. Telling Everyone Immediately
Word spreads fast. Within hours, you'll receive requests from everyone you've ever known—and many you haven't. Criminals also monitor public winner announcements.
2. Making Major Purchases Immediately
The urge to buy a mansion, sports cars, and a yacht is strong. But large purchases before you have a financial plan often lead to regret and cash flow problems.
3. Lending Money to Family
"Loans" to family and friends are almost never repaid and create permanent resentment. If you want to help, give gifts with clear expectations.
4. Quitting Your Job Dramatically
While you may not need to work, quitting immediately (especially publicly) draws attention and can lead to identity issues. Many winners find meaningful work later.
5. Not Getting Professional Help
Managing hundreds of millions requires expertise you don't have. Trying to DIY your finances is the fastest path to bankruptcy.
6. Ignoring Security Concerns
Public winners have been robbed, kidnapped, and killed. Consider a security consultation, especially if anonymity isn't possible in your state.
Suggested Timeline
Day 1
Secure ticket, tell no one, take time off work, begin searching for advisors
Week 1
Interview and hire attorney, financial advisor, and tax professional
Week 2-4
Set up trust/LLC if pursuing anonymity, develop financial plan, prepare for claiming
Month 1-2
Claim prize, open appropriate accounts, implement investment strategy
Month 3-6
Make thoughtful decisions about lifestyle changes, philanthropy, and family gifts
The Waiting Period
Most states give you 180 days to 1 year to claim. There's no rush. Take the time to prepare properly—it could save your life and fortune.
Frequently Asked Questions
Should I take the lump sum or annuity?
This depends on your financial discipline, investment knowledge, and life expectancy. The annuity provides guaranteed income for 29 years. The lump sum (typically 50-60% of the jackpot) gives you control but requires careful investment.
How much will I actually get after taxes?
Federal taxes take 24-37% depending on your total income. State taxes range from 0% to 10%+. On a $500 million jackpot lump sum (~$250 million), expect to keep roughly $150-175 million after all taxes.
Can I give money to family without tax consequences?
You can give up to $18,000 per person per year (2024) without gift tax implications. Larger gifts count against your lifetime estate tax exemption (~$13 million). Work with a tax professional for optimal gifting strategies.
How do I deal with people asking for money?
Have a prepared response: "My financial advisors are managing everything. I'm not making any decisions for six months." Consider setting up a small fund for helping others, with clear limits and an application process.
Should I move to a new house?
Not immediately. Moving draws attention and can be disorienting during an already stressful time. Wait at least 6-12 months before making major lifestyle changes. When you do move, consider security features and privacy.
Do I need a bodyguard?
If your win is public, a security consultation is wise. You may not need full-time protection, but experts can assess your risk and recommend appropriate measures like home security, travel protocols, and cyber protection.