After you win the lottery, you have two, very important decisions to make. Do you want to receive your winnings as a lottery lump sum payout, or as a lottery annuity settlement? And how are you going to spend that lump sum, or those annuity payments?
Although there’s no clearly wrong decision with the first dilemma, since each winner’s financial circumstances are so often complex, people can definitely make some wrong decisions, as history shows. Here are just a few examples of people losing their lottery winnings foolishly.
Letting Someone Else Claim the Prize.
Poor Etta May Urquhart. When she finally won the lottery after 18 years of playing, she was too emotional to be able to claim the prize, and so she asked her son to sign the ticket and claim it on her behalf. Ronnie, however, claimed it as his own, and blew a ton of it. Etta wound up suing her own son for fraud and abuse.
Continuing to Collect Welfare.
After Amanda Clayton won the lottery, she kept collecting welfare, even though her new fortune no longer necessitated that she receive help from the government. Either she didn’t realize she was still getting welfare, didn’t care, or wanted to continue getting welfare. Either way, she wound up being arrested for welfare fraud.
Literally Spending It All on Clothes.
When Vivian Nicholson won the lottery back in 1961, she said that she was going to spend it all, and meant it. Although everyone thought she was being hyperbolic, and that she’d surely put some of it away, she blew through her millions of dollars so quickly that in 1965 — just four years later — she wound up filing for bankruptcy.
If you have lottery payments coming to you, do yourself a favor and don’t let someone else claim it, or spend it all on clothes. If you know of weird things bought with lottery money, feel free to share in the comments. annuity-or-the-lump-sum-if-you-win-the-lottery-2013-9″ Title=”Sell my structured settlement for cash, Cash for structured settlement”>Visit here for more information.