Protecting Minors: Safeguarding Lottery Winnings and Settlements
I saw the article below on Yahoo. Often attorneys suggest structuring a large settlement for a client’s protection. That is putting the money in an investment vehicle or trust that pays yearly, thus the client doesn’t spend all the money at once.
Court Requirements for Minor’s Proceeds
Often courts will require that a minor’s proceeds are put into trust for the minor. These funds are usually available for medical, school, etc., immediately, and then the bulk of the money may not be paid until the child reaches the age of majority.
This also protects children from parents who might not exercise good judgment when dealing with the child’s money.
Case Study: Callie Rogers
Callie Rogers: How to Lose $3 Million in Six Years by Mike Krumboltz, 18 hours ago – 3,688 Votes
Stop us if this sounds familiar: A very lucky person wins the lottery and expects life to change for the better, but instead, things go horribly wrong. It’s a story as old as the hills, but each time it happens, it causes a huge commotion in Search.
The latest “victim” of sudden wealth is a young woman from the U.K. who won millions of bucks several years ago, only to lose the vast majority of it shortly thereafter.
Callie Rogers was just 16 when she won a whopping $3 million in the lottery. Six years later, she reports that she blew untold sums on drugs, partying, exotic cars, and breast implants. A staggering $730,000 went to designer clothes alone, Ms. Rogers explains in an article from AOL.
Says Rogers: “I honestly wish I’d never won the lottery money — and knowing what I know now I should have just given it all back to them.” She’s currently left with around $32,000.
Lessons from the Lottery Curse
In these trying economic times, Ms. Rogers will likely find little sympathy. Still, it’s worth noting that she’s hardly the first big winner who wished she’d never bought a ticket.
There is such a thing as the lottery curse: As mentioned in a previous Buzz Log, there are numerous cases of lotto winners getting divorced due to stress and losing everything from poor investments. A few have even died at the hands of greedy relatives.
Knowing she’s not the first jackpot winner to suffer hardship won’t make her life any easier. But perhaps Ms. Rogers can take some comfort from the fact that there are others out there with eerily similar stories: They won big then lost big, and often wish they’d never even played.
For expert guidance on protecting minor settlements and lottery winnings, consult Frenkel & Frenkel.