LAFAYETTE PARISH — The Powerball jackpot has soared to $1.7 billion, and with that kind of money on the line, everyone has a different idea of what they’d do if their numbers hit.
“I’m taking the cash payout. I’m too old to take the annuity,” remarked one Powerball player.
From buying the New Orleans Saints to paying for college or even handing out boxes of cash, Acadiana residents shared their daydreams about life after a lottery win.
“I’m gonna relocate and put all kinds of money in the box—$5, $10,000—and whatever you grab, you grab.”
“I’m gonna make sure my daughter gets into one of the best colleges, buy my mama a house, and then I’m going to swim with the dolphins.”
“I’m cashing out and then I’m headed to the motherland.”
While imagining the possibilities can be fun, estate planning and tax experts say the smartest move happens before you ever win.
“The far smartest first move already happened,” said Joe Placer, a board-certified estate planner and tax law specialist. “If you’re playing the Powerball, make arrangements ahead of time—form an empty revocable trust with multiple beneficiaries or a family partnership.”
Placer says that kind of preparation can protect your money and minimize your tax bill.
“They should be written. Write on a piece of paper,” Placer explained. “Because if I give you half of my Powerball ticket, I’m donating a dollar. But if I give you half of my $100 million winning Powerball ticket, I’m giving you $50 million—and the IRS is gonna want 40 percent of what I give you.”
And when it comes to the biggest decision—cash lump sum or annuity—Placer says the answer isn’t always straightforward.
“If we’re talking about hundreds of millions of dollars in payout, I think I’d be fine with the growth the state wants to attribute to it,” Placer said. “Whereas if you take the lump and put it in the market, the market crashes—you’re done.”
Whether you’d cash out, take payments, or buy the Saints, one thing is certain: winning the Powerball comes with big dreams—and even bigger decisions.
