What are the benifits/disadvantages of taking a lotto winning in one lump sum/over time?

Question

What are the benifits/disadvantages of taking a lotto winning in one lump sum/over time?

Answer 1

theoretically you wouldn't have to pay as much tax if you took it out over 20 years or whatever.

some ppl get crazy and lose all their winnings so It might be better to get paid in installments.

they take almost 50% right off the top (the IRS) because the money is considered unearned income.

then you pay more taxes down the road so basically

if you win a million dollars you'd get around 3 or 400K.

if you died you wouldn't get to enjoy the money.

when you win you should form a corporation so that even if you do die they have to keep paying.

Answer 2

The lotto organization will pay less than 75% of the actual winnings. Say you won $10 million after taxes.

If you chose the lump sum you will only get at most $7.5 million, losing $2.5 MILLION DOLLARS!!!!!