If you’ve won a large mega millions jackpot and opted for an annuity, you hope to enjoy your winnings for years to come. Of course, no one likes to think about dying, but making a will if you come into large sums of money is always a good idea.
If a mega millions winner dies after securing an annuity, this will become part of their estate. Whoever inherits it will continue to receive payments every year for the remaining number of years.
Whether there are only two years left or twenty, the payouts could be huge. This would make a very nice nest egg for a lucky beneficiary. Money that could buy a new car, a house, holidays abroad, or even pay for kids’ university fees. It would certainly make life comfortable. Whether it’s a close family member, partner, or even friend, you need to take action on getting a will drawn up as soon as you’ve set up your annuity.
Can You Have More Than One Beneficiary?
If you have several family members can your annuity have more than one beneficiary? Unfortunately, most states only permit one named beneficiary. If you have several children and grandchildren this could present problems.
Check your state lottery rules, and speak to someone if you’re not sure. In the event that they don’t allow more than one beneficiary, consider getting payments made directly to your estate. This way all the money could be evenly distributed among the heirs.
This is something you’d certainly need to consider carefully to avoid creating family tensions. It’s not uncommon for siblings to quarrel over an inheritance.
Would Beneficiaries Pay Tax on Winnings?
Each state has it’s own tax laws and your beneficiaries would be responsible for any tax liability on their share of the estate. In some cases, this could be as much as 40%