What Do I Do with My Powerball Millions and How Do I Keep it Quiet?

The Multi-State Lottery Association, which runs the Powerball Lottery, states that only five states grant winners the legal right to remain anonymous. If you didn’t buy your ticket in one of those states, are you out of luck? Read on to find out.

If you want to remain anonymous but purchased your winning ticket outside these states, you can use legal strategies to protect your privacy. Forbes outlines two key methods in its article “How to Remain Anonymous If You Win The $1.5 Billion Powerball.”

1. Blind Trusts: A blind trust helps conceal ownership from the public and asset searches. By creating a trust or LLC under a different name, you retain full control while making it harder for others to trace the winnings back to you.

2. A Trust within a Trust: High-profile winners seeking greater anonymity may use a two-trust structure with legal assistance.

The first step is establishing a Claiming Trust, which officially claims the prize. The winner assigns the ticket to this trust, which then transfers the funds to a Bridge Trust. The Claiming Trust should have a name untraceable to you.

Since most revocable trusts use the grantor’s Social Security Number, state lottery records may be subject to Freedom of Information Act (FOIA) requests. To avoid this, winners may use a limited liability company (LLC) as the grantor. The LLC would own the winning ticket and establish the Claiming Trust, shielding the winner’s identity. However, some states require LLC ownership details, so legal guidance is crucial.

The second step is setting up a Bridge Trust, which receives the winnings from the Claiming Trust. This trust provides further anonymity as its details aren’t subject to FOIA requests. The winner’s name can appear as grantor and trustee, but the trust name should avoid personal identifiers.

Reference: Forbes (January 12, 2016) “How to Remain Anonymous If You Win the $1.5 Billion Powerball.”

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