Posted on 07/24/2020 6:31:28 AM PDT by lowbridge
A western Wisconsin man will share his millions in lottery winnings with a longtime friend because of a promise they made to each other nearly three decades ago.
Friends Tom Cook and Joseph Feeney shook hands in 1992 and promised that if either of them ever won the Powerball jackpot, they would split the money.
That promise came to fruition last month when Cook bought the winning ticket for a $22m jackpot at Synergy Coop in Menomonie.
When Cook called to give his friend the good news, Feeney couldn’t quite believe it.
“He called me, and I said, ‘are you jerking my bobber?”’ said Feeney, an avid fisherman.
Cook retired after hitting the jackpot while Feeney was already retired. Neither has any extravagant plans for the winnings but each is looking forward to enjoying more family time.
(Excerpt) Read more at theguardian.com ...
Don’t you hate it when people jerk your bobber?
More like stuning his beeber.
I hope both consult their CPAs for tax advice. The share given to the friend will be subject to gift tax.
I’m sure they can minimize the tax bill if the transaction is structured a certain way.
If I want my bobber jerked I just turn on CNN.
The unified credit for 2020 is $11.5m. That means he could gift $11.5m before incurring any gift taxes. Since he took the cash option of $16m, the half he gave to his friend will not result in any gift taxes. His risk is that the Dims get in and drastically reduce the unified credit. In that case, his estate might have to pay estate taxes on what he has left. Seems fairly unlikely, though.
Is this a fishing phrase? Like when you and a friend are fishing side by side and have lines in the water and when the bobber bobs you know you have a fish on the line. So if you jerk your friend’s bobber that would mean you are pranking him into thinking he has a fish on the line.
Let’s see $22 million, collect immediate payout cut it in half, split with friend cut that in half. Pay taxes on that, maybe half. They’re left with a couple of million each. Comfortable but not in “buying my private jet to go to my private island” rich.
Keeping a promise.... A man with Honor.
It’s a good thing to see, in this graceless, classless time we’re currently living through.
That’s one helluva friend. Pretty nice feel-good story.
The news reports said that after taxes, they will each get $5.7 million. What a ripoff.
You have the meaning right.
“That’s one helluva friend. Pretty nice feel-good story.”
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Yea, but I bet he’s got some highly ticked off family members that don’t give a hoot about integrity/honor...that sort of thing. They be wanting as much money as he can possibly give them.
I think you can claim the prize with another person, but certainly worth making sure. A stitch in time saves nine (million bucks).
A man of his word, a true personal honor and integrity.
Sounds like these two just want to be comfortable and spend more time with their families.
That’s for estate inheritance. Gift taxes kick in at $15,000 for 2020. The giver and his spouse could both gift $15,000, for a total of $30,000 to the recipient before the tax kicks in.
$5.7 million in 20 year US Treasury bonds returns about 1% now. That’s 57,000 dollars/year.
Definitely not living large on that.
An additional $57,000 a year of income would certainly help get the bills paid for most people.
I would think the previous promise could be taken as a contract that would entitle his friend to receive half the prize directly?
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