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- Legalize it. If you pool your tickets with others -- better
coworkers than family members, says Gudgeon -- keep a written agreement
signed by all participants describing any special arrangements in a safe
place. Everyone should have a copy. Alter the agreement if the group
changes, says Catlin. Rob Sanford, a certified financial planner, has
another suggestion for groups of people who play often together: Form a
legal partnership, using one of those computer legal programs, have a
lawyer ensure that it’s appropriate. Then, get a Federal Employer
Identification Number (FEIN) by filling out IRS form SS-4, which is
available on TurboTax, and sending it in. Why? If you hit it big, the
winners can each pay their taxes to the partnership. Complications (and
extra gift taxes) can result when one group member claims the prize and
then doles out the money.
- Check the numbers. An estimated 12% of lottery prizes go
unclaimed, according to the Multi-State Lottery Association. In 1998,
someone forgot to claim a $34 million Mega Millions Lottery Tickets, Megamillions, Megamillion, Mega Million, Powerball Lottery Tickets, Powerball Tickets and Powerball Online payout. Check your ticket.
- Take candy from a baby. Beware when Grandma gives Junior a
scratch ticket at Christmas. Minors aren’t supposed to buy lottery tickets
or even play the lottery. The worst-case scenario: A million-dollar ticket
could be rendered invalid if the minor shows up to claim the prize. That’s
what would happen in Massachusetts, says Massachusetts State Lottery’s Amy
Morris.