68 years old and he opted for payments over 26 years? huh?
Optimism.
Yeah that’s odd.
Unless he had the winnings paid into a family trust in which he was not the only member. Personally, I would have taken the lump sum. Knowing New York, they may default on the payments in later years.
Probably safer than taking a lump sum payment, then squandering it all within a few years, as lottery winners are wont to do.
This lottery winner must be counting on Trump’s tax plan that eleminates the ESTATE tax will be passed. He owns the installment payments that at death will become the present value of “Income in respect of a decedent” will be calculated and included in the estate tax return by the executor/administrator that currently has a %5 million deduction with the balance subject to the estate tax, cuttently 35%, due and payable 9 months from date of death, in CASH.
This estate tax obligation does not alter the annual payment to the winner’s heirs, which means the estate will not have the due and payable cash needed to pay to the IRS. I do not know if the IRS will accept a lien on the future payments. This guy must have gotten his advise from his brohter in law, not a tax advisor/lawyer.