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Can't take the lump sum :(

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Can't take the lump sum :(

Old 12-31-04, 06:48 AM
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Can't take the lump sum :(

Winner, 94, Loses Lump Sum Fight

Thu Dec 30,11:46 PM ET
Add to My Yahoo! U.S. National - AP

By KEN MAGUIRE, Associated Press Writer

BOSTON - A judge denied a 94-year-old woman's attempt to force the Massachusetts Lottery Commission to pay her entire $5.6 million winnings up front on grounds she otherwise won't live long enough to collect it all.



The ruling means the commission can pay Louise Outing, a retired waitress, in installments over 20 years worth about $200,000 annually after taxes.

"I expected that," Outing said Thursday following the ruling. "I'll make out some kind of way."

Superior Court Justice Barbara A. Dortch-Okara said Outing, of Everett, was not harmed by the commission's disbursement rules because she can obtain the lump sum elsewhere.

Lottery winners are allowed to "assign" their winnings to a state-approved financial company that makes the full payment but only in return for a percentage of the total winnings.

Outing's lawyer, James Dilday, said that's an option if they decide not to appeal. He maintained the rules give lottery officials discretion to authorize a lump-sum payment.

Outing, who won a Megabucks drawing in September, has seven grandchildren, nine great-grandchildren, and six great-great-grandchildren.

"I'd like to get it and do what I want with it," she said. "I'm not going to live 20 years. I'll be 95 in March."

Lottery Executive Director Joseph Sullivan said all players are held to the same rules, which are printed on the back of Megabucks tickets.

After an initial gross payment of $283,770, Outing would be paid 19 annual gross checks of $280,000. That's about $197,000 after taxes.
Isn't there a check box on the ticket that allows you to take the lump sum?

Yahoo

Last edited by Nick Danger; 12-31-04 at 06:57 AM.
Old 12-31-04, 07:05 AM
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she should've taken.. well shoot she tried

I guess it varies by state

but she might live to be C-Man's age. 114
Old 12-31-04, 07:35 AM
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I hope she manages to get by.
Old 12-31-04, 08:36 AM
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Originally Posted by Sockmonkey
I hope she manages to get by.
I think it's more about being able to provide for all the grandchildren at one time.
Old 12-31-04, 08:49 AM
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Originally Posted by Nick Danger
Isn't there a check box on the ticket that allows you to take the lump sum?

Yahoo

No, there isnt.
Old 12-31-04, 09:33 AM
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So when she dies, be it next year or in ten years, do the payments just stop and the lottery ends up pocketing the remaining winnings or is she able to will the remaining payments to someone?
Old 12-31-04, 09:35 AM
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Originally Posted by milwaukee_mike
So when she dies, be it next year or in ten years, do the payments just stop and the lottery ends up pocketing the remaining winnings or is she able to will the remaining payments to someone?

The payments are made to her estate.
Old 12-31-04, 10:45 AM
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^ i thought it would go back into the lottery pot.

(i would think that because i always see the older people take the lump sum)
Old 12-31-04, 10:55 AM
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Originally Posted by Mole177
^ i thought it would go back into the lottery pot.

(i would think that because i always see the older people take the lump sum)

It doesnt.

5. QUESTION: What happens if a winner dies before collecting all the annual payments due?
5. ANSWER: The remaining annual payments will be made to the estate of the deceased prize winner.


http://www.masslottery.com/QNA.htm#Q5
Old 12-31-04, 11:17 AM
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Originally Posted by chrisih8u
The payments are made to her estate.
Yep - our office manager's mother won about three million dollars just a few years before she died. The remaining payments are split up amongst her kids.
Old 12-31-04, 11:39 AM
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So why is the state making a stink about not paying her the lump sum? They are going to have to pay her anyway.
Old 12-31-04, 11:48 AM
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Originally Posted by asabase
So why is the state making a stink about not paying her the lump sum? They are going to have to pay her anyway.
For the very reason they require/allow it to be made in smaller payments over time on all lottery games.
Old 12-31-04, 11:50 AM
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So I guess if you wanted to buy a really nice house, you'd still need a mortage?
Old 12-31-04, 11:57 AM
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Originally Posted by Fok
So I guess if you wanted to buy a really nice house, you'd still need a mortage?
Unless you opted to have the lump sum issued to you through one of the financial institutions.
Old 12-31-04, 12:13 PM
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Originally Posted by Thor Simpson
For the very reason they require/allow it to be made in smaller payments over time on all lottery games.
But paying the lump sum doesn't cost them anything since you only get a percentage of your total winnings based on the expected interest earned on that money if the state were to keep it for the 20 years.
Old 12-31-04, 12:15 PM
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Read:
BOSTON - A judge denied a 94-year-old woman's attempt to force the Massachusetts Lottery Commission to pay her entire $5.6 million winnings up front on grounds she otherwise won't live long enough to collect it all.

The ruling means the commission can pay Louise Outing, a retired waitress, in installments over 20 years worth about $200,000 annually after taxes.
I don't know any state that does that. If you choose the lump sum option (in states that have that option), then your payment is much less than the installment option (about 1/2) due to the interest. She wanted the entire amount up front "on grounds she otherwise won't live long enough to collect it all."
Old 12-31-04, 12:19 PM
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Originally Posted by asabase
But paying the lump sum doesn't cost them anything
Up front it does.
Old 12-31-04, 12:25 PM
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I didn't read the whole article, but she should have opted to take the lump sum. That's always the better choice, regardless of age.
Old 12-31-04, 12:27 PM
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The real question is what the heck a 94 year old needs with a lottery ticket in the first place.
Old 12-31-04, 01:11 PM
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Originally Posted by chrisih8u
The payments are made to her estate.
The hell of that is that her heirs are responsible for the inheritance tax on the entire sum when she dies. They will likely end up with nothing, since they will have to "sell" the lottery winnings to someone else at a greatly reduced discount for a lump sum now. They'll have to come up with about $1.5 million in cash to pay the taxes on it at the end of the year she dies.
Old 12-31-04, 01:12 PM
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Originally Posted by TheHistorian
The real question is what the heck a 94 year old needs with a lottery ticket in the first place.
Exactly what i was thinking.
Old 12-31-04, 01:23 PM
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Originally Posted by namja
She wanted the entire amount up front "on grounds she otherwise won't live long enough to collect it all."
this is how i read it as well

we may be assuming she didnt have the option for a "lump sum" payment..
when really, she didnt want that.. she wanted a "full sum" paid up front.
Old 12-31-04, 01:29 PM
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Originally Posted by TheHistorian
The real question is what the heck a 94 year old needs with a lottery ticket in the first place.
Maybe she's got some disposable income to purchase tickets and her intention was to provide for her grandchildren and other family members.

In any case, she obviously made the right choice purchasing lottery tickets.
Old 12-31-04, 01:33 PM
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Originally Posted by TheHistorian
The real question is what the heck a 94 year old needs with a lottery ticket in the first place.
To buy her way into Heaven (of course).





Old 12-31-04, 01:38 PM
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Originally Posted by Coral
Maybe she's got some disposable income to purchase tickets and her intention was to provide for her grandchildren and other family members.
It's probably all of the money she's saved importing her drugs from Canada ....

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