Winning the lottery can be life-changing and a big deal, which is why hiring the right professional can help a lot. That is especially true if you never had experience managing a lot of money and finding the right applications for it. Fortunately, there are a few types of specialists you can consult with to guide you in that moment of happiness and doubt.
Quick Jump
1. Hire a Lottery Lawyer
Trustworthy lottery lawyers are worth far more than you will ever spend on their fees as long as they are real specialists. It should be someone who specializes in lottery prizes and related taxes, mostly doing also the job of an accountant. Hiring a lottery lawyer is among the first things to do when you win the lottery.
That professional as your consultant will help you understand your rights and obligations as a lottery winner, starting with taxes. Besides, that person can also help you to stay anonymous when you win the lottery by protecting your privacy via a trust.
Through the disbursement of about $20,000 for a good lottery lawyer, you can get someone to eliminate all possible doubts and warn you about usually unnoticed perils. Keep in mind that this price considers the creation of a trust and some services, but that you will pay for each hour dedicated to your case.
For example, if someone tries to scam you or lie about something to put their hands on your money, having an expert by your side can help you avoid the “lottery curse”. That is especially true because others who did not win the lottery won’t be able to afford the same.
We have a complete list of the best lottery lawyers that you should check. In summary, that type of professional will do you good due to:
- Complete understanding of lottery taxes.
- Protection from scam claimants.
- Possibility of staying an anonymous winner.
2. Financial Advisors to Protect Your Future
A financial advisor is an important step if you want to make sure that you will get the best possible destination for your money. Just trying to spend not that much and putting the money in a savings account of banks that handle lottery money is not the best approach. On the contrary, you might find sooner or later that you spent more than you should and that the money is not growing.
Therefore, to increase the chances of being among the lottery winners who are still rich, it does make sense to hire a financial advisor. Look for someone who has credentials, like a CFP (Certified Financial Planner). A professional may cost more, but you will have a complete plan of where the money should go and how much you can use for fun.
You might not need more than a first investigation and planning of your money destination. However, even if you feel that there is a need to accompany and update the plan, consulting once every few months should do the job. Expect something around $10,000 for that first and complete assessment.
Of course, if you want someone to manage your money for you, that will cost a lot more. It is all about how much value you perceive in your time and if you feel like trusting and paying someone to manage your money is the right way to go.
3. Accountants to Stay Safe
An accountant will let you know if you can avoid lottery taxes of some sort, which can generate difficulties in understanding when you play on lottery sites. Hiring a certified accountant right after you win the lottery can definitely help with understanding what you are able to keep and what goes to the government.
Those are details that you can research all by yourself, including our guides on the difference between lump-sum and annuity payments. However, if you miss anything, be ready to pay interest and fines that cannot be justified.
Also, you have the option to hire an account after winning the lottery to accompany at least your first year. Due to excitement or pure laziness, we may not keep track of everything, and the accountant is paid to make sure that you are not spending too much.
If you have a plan elaborated by a financial advisor, an accountant can help you stick to it. Even the investments you might make with your lottery money, including businesses or stocks, result in taxes that must be collected. If you feel like you do not want to spend time learning about all that and putting it into practice, have at least $20,000 prepared annually.
What to Look for Before Hiring a Lottery Lawyer or Advisor?
After winning the lottery, you should not hire the first person who specializes in lottery winners you find. Some of the best parameters that may help you find the right professional include:
- Experience: Having experience in the field is a must, especially because they need to know everything about your rights and obligations as a lottery winner.
- Qualification: Look for certifications from accredited organizations that are related to their field of expertise.
- Reputation: Even though you might not know another lottery winner, check the internet for complaints or good feedback on their work.
- Communication: Test how good they are at communicating with you. You do not want to hire someone that is difficult to reach.
- Trust: That person will help you with all your lottery money and maybe even manage it. Do not hire someone that you do not trust entirely. Listen to your instincts!
Must You Hire Professional Help After Winning the Lottery?
Hiring a tax attorney, a financial advisor, and an accountant is not necessarily a must when you win the lottery. However, we have approached some serious complications that can be easily solved if you have someone who has dealt with them hundreds of times.
