You’ve won the lottery. Congratulations! Now what? Winning the lottery in Ohio is a life-changing event, especially when it comes to protecting your identity and your financial future.
Tips To Protect Your Financial Future
When you win the lottery, whether it is a scratch-off, Powerball, or Mega Millions, before you make any other moves, you should keep the winning ticket and any file claim that you print in a safe place.
You have 180 days from the drawing date to claim your prize. Missing that window means forfeiting your winnings. Within this period, you should build your expert team. Your first move should be to hire an attorney with experience in Ohio lottery and anonymity trusts; a financial advisor to help craft a secure long-term plan; and a CPA or a tax professional to navigate withholding and federal/state tax implications.
When you claim a prize in Ohio, you or your representative must go in person to the Ohio Lottery Commission (OLC). Everyone who enters the building is required check in with a valid photo ID. That sign-in log is a public record under Ohio law.
Ohio is one of the few states that allows lottery winners to remain anonymous. So long as you claim the proceeds through a properly structured trust, Ohio Revised Code § 3770.07(A) explicitly permits claims via a trustee where only the trustee’s name becomes public. However, even if you intend to claim through a trust, simply showing up to the OLC with your trustee risks having your name attached to the winning claim in the public record.
The best way to avoid your name being associated with your winnings is to work with an attorney who specializes in lottery claims. If you opt to take the lump sum specifically, an attorney will be needed to assist with the documents to claim the proceeds through a private trust.
Claiming proceeds anonymously requires various trust documents. First, the winner (with the help of counsel) establishes a revocable trust, of which the winner will be the Grantor and the Beneficiary. This trust will be known as the “Custodial Trust.” The winner will assign the winning ticket to the Trustee of the Custodial Trust.
From there, the Custodial Trust will be the Grantor and Beneficiary of the “Passive Trust.” The Trustee of the Custodial Trust will assign the winning ticket to the Trustee of the Passive Trust. In practice, the same individual serves as trustee for both trusts. Both the Constructive Trust and Passive Trust should have neutral names, not associated with the winner, to preserve anonymity.
The Passive Trust is a simple standardized form provided by the OLC and exists solely for the purpose of claiming the prize. Once the claim is processed, the OLC issues the check directly to the Passive Trust. From there, the Trustee transfers the proceeds into the Custodial Trust, which is where the winner ultimately controls and manages the funds in private.
Once the proceeds are claimed, professional guidance becomes essential, and you’ll be thankful that you started the process with building an expert team. Further estate planning is a critical step for any lottery winner, no matter the size of the prize. Proper estate planning ensures that your winnings are protected and distributed according to your wishes, both during your lifetime and after. Beyond simple protection, thoughtful estate planning transforms a short-term windfall into lasting security, giving you the opportunity to create general wealth that benefits your children, grandchildren, and charitable causes for decades to come.
Winning the lottery is a great opportunity but also comes with unique legal and financial challenges. At Cavitch we have done several lottery cases and have experience in this unique area. We can guide you through each step, helping you claim your proceeds securely and designing an estate plan that protects your wealth for generations to come. Luck is on your side, we’re here to make sure you handle it the right way.