(NEW YORK) — After the glow of a Powerball victory begins to dim, there are state-specific regulations that the winners have to keep in mind in order to collect their share of the $1.586 billion.
While none of the three winners have come forward publicly yet, they all will eventually because California, Florida and Tennessee do not allow winners to remain anonymous.
Here are some other factors that the winners should remember:
How long do they have to collect their winnings?
California: 180 days from the date of the drawing, so they have until July 11 to collect.
Florida: If the person who bought their ticket in Melbourne, Florida, wants to take the cash option, they have only 60 days from the date of the draw to collect. If they want the annuitized share, they have 180 days to collect.
Tennessee: 180 days from the date of the drawing, so they have until July 11 to collect.
How much does the retailer win for selling the jackpot ticket?
California: The 7-Eleven in Chino Hills will be awarded $1 million for selling a jackpot ticket.
Florida: The Publix in Melbourne will be awarded $100,000 for selling a jackpot ticket.
Tennessee: The unnamed store in Munford, Tennessee, that sold the winner will receive $25,000.
Where does the state’s lottery money go?
California: The California Lottery puts its supplemental funds toward California public schools. More than $1 billion has been donated to the state’s schools every year since 2001, according to the lottery website.
Florida: A similar system is in place in the Sunshine State, where the money gets donated to the state’s Educational Enhancement Trust Fund, which is then distributed at the discretion of the state legislature, according to Florida Lottery spokeswoman Connie Barnes. From this particular series of Powerball jackpot rolls, which started Nov. 7, the Florida Lottery has contributed $114 million to the state’s fund, Barnes said.
Tennessee: Education is also the main recipient in Tennessee, where the money is earmarked for scholarships. Its website states that more than 100,000 people benefit from the education programs they sponsor.
How much can the winners expect to take home?
Wednesday night’s jackpot was $1.586 billion and because that will be split three ways for the three tickets, each winning ticket will be allotted roughly $528 million.
From there, depending on the individual’s federal, state and city taxes, they can expect to take home about one-third of their winnings, which equates to roughly $176 million.
What steps should the winners take before claiming their prize?
Aside from signing their ticket, which is a must, there are other moves the winners can make to protect their money.
State-run lottery organizations do not give tax or financial advice to winners and they urge people to seek outside counsel.
Alexa von Tobel, the founder and CEO of financial planning site LearnVest.com, notes that in addition to just calling up the first financial planner from an Internet search, be sure to do thorough background checks on the individuals who you hire to help you navigate the win.
She suggested hiring an estate planner, a certified financial planner and an accountant before claiming the money. In addition to completing background checks, von Tobel also noted the importance of confirming their respective fees before signing on any dotted lines.
Copyright © 2016, ABC Radio. All rights reserved.
Recent posts in National News