The Mega Millions jackpot is $785 million. Taking the lump sum is ‘typically a big mistake,’ lottery lawyer says

As the Mega Millions lottery continues to grow, it has reached one of its highest jackpots in history. The next drawing is on Tuesday, January 10 and the prize has risen to an estimated $1.1 billion.

One of the first decisions lottery winners must make is whether to accept the jackpot as a lump sum or as an annuity. Taking the annuity spreads the windfall disbursement over three decades. Over 90% of winners take the immediate lump sum, but Chicago-based lottery lawyer, Andrew Stoltmann, says this is a big mistake.

According to experts, there are psychological benefits to taking the annuity as well. If you were to take the annuity and spend all of the money, there will be another check coming the next year. While there are many factors to consider, regardless of the payout option, the winner’s life will be forever changed.

For more information see Jessica Dickler “The Mega Millions jackpot is $785 million. Taking the lump sum is ’typically a big mistake,’ lottery lawyer says”, CNBC, January 4, 2023.

Special thanks to David S. Luber (Florida Probate Attorney) for bringing this article to my attention.

https://lawprofessors.typepad.com/trusts_estates_prof/2023/01/the-mega-millions-jackpot-is-785-million-taking-the-lump-sum-is-typically-a-big-mistake-lottery-lawy.html