19 November 2023 , 08:00
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A lawyer has revealed what he thinks is the toughest aspect of a big lottery win as the Powerball jackpot looks set to soar again.
Earlier this year it hit highs of an incredible a mouth-watering $1.4 billion, meaning the grand prize has the potential to dramatically change someone's life forever. The astronomical sum is likely to totally uproot the winner's life as they suddenly find themselves as one of America's richest people.
Such a change in fortunes can be difficult for people according to one lawyer who has represented a number of lottery winners over the years. Andrew Stoltmann says a number of challenges suddenly face jackpot winners, including family members asking for cash and "Saying 'no’ to family might be the toughest thing that lottery winners have to do," Stoltmann said.
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Lottery winners should assemble a team after their big win (AFP via Getty Images)First, lottery winners should gather together the relevant money experts including financial advisors and tax professionals. An attorney or two also wouldn't go amiss.
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"Lottery winners historically are from lower socio-economic backgrounds,” Stoltmann told CNBC. "They don’t have the experience managing money or establishing the financial team."
Powerball winners can choose between a lower lump sum or an annuity payment that increases by five percent every year after one immediate payment. If a lucky individual secures the current prize, they can choose between one of $614million or the $1.4 billion prize paid in installments over 30 years - both figures are subject to tax.
Financial planner John Loyd told the news outlet his advice to clients would be to "do nothing" at first and instead take time to assess what is about to change and get organised. Money is an emotional thing," he said. "You want to try to minimise making emotional decisions."
Lottery winner Edwin Castro has not been shy when it comes to plashing to cash. The richest Powerball winner in US history has added two vintage Porsches to his growing collection of cars.
The big-ticket buys come on the back of him securing a Bel Air estate for £38 million ($47m) with seven bedrooms, 11 bathrooms, a koi pond and a luxurious infinity pool, a champagne tasting room, DJ turntables, a suspended glass walkway, a wine cellar and home theatre - all on the back of his $2 billion win in February.
From Altadena, California, the 31-year-old created a huge collection of motors since he won the record-breaking prize. He already owns a white Porsche 911 from the 1980s, a grey Ram 1500 TRX, and three Volkswagen Karmann Ghias, two black and one red. His latest buys are a British racing green 1970s Porsche 356 and a black Porsche 1980s 911.
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