Legal Advice for Lottery Winners

Congratulations on winning the lottery. It is time to celebrate your good fortune. But before that, you need to consider certain factors that will help you secure your winnings. The odds of winning the lottery are one in millions, so it is a special moment. You need to make the most out from your winnings and only with the help of a professional you can achieve this.

You need to find a lawyer who represents lottery winners because he/she knows everything about lotteries from the total amount you will get after tax deductions, whether to receive the payment in lump sum or in installments, how to invest the money intelligently, and more.

Call the lawyer immediately after your winning news

The winning ticket is not officially yours until you sign the back of it, and the rules for claiming online lottery winnings are different. Therefore, you need to call an experienced lawyer who deals with lottery winners. The lawyer will provide you with the best advice on how to sign the ticket depending on your jurisdiction.

After signing the ticket, you need to make a copy of the lottery ticket (both front and back). Keep the original ticket safe in a locker or in a safe deposit box, until you claim the winnings.

Call a tax professional

When hiring a lawyer, do not agree to allow the lawyer a percentage of your million-dollar winnings. If the lawyer asks for a percentage, he/she is not the one you should go with. Moreover, you need to call a tax professional who can help you understand the rules and regulations after winning a lottery in India. Plenty of taxes come after winning a lottery, and you need to address all of them.

Apart from these two points, which should be your priority, there are lots of other things to consider.

You get to claim your lottery winnings either in a lump sum or in installments. Both are good options depending on your situation. Ask your lawyer whether to get the lump sum and invest the prize money at once or take periodic annual payments.

Make sure that you know everything about the taxes. According to the Indian law on taxes on lottery winnings, 30% of the total winning amount is deductible. It may vary; hence, you need to consult your lawyer or tax professional about it.

With huge amounts comes huge responsibility. You will experience sudden warmth from friends and families who didn’t try to bother you before your big win. No one is saying that you don’t need to help someone financially. Consult your lawyer about it before giving money to your friends or relatives.

The most important question you can ask your lawyer and tax professional is to how to invest the money intelligently so that you can use it today until you die. That is, how can you save the money for your retirement?

The first thing you need to do after winning the lottery is to keep your mouth shut and do your homework.