That’s why I was thinking, if I ever won the lottery, to have it paid out to a corporation, so I would only pay the corporate level of taxation.
I’d be the sole shareholder, since I don’t have family. But if I did have family, they’d have enough shares so that their income would be tax-free.
I know a guy who does this. He’s a plumber and his company is incorporated. His family are shareholders and they have enough shares so that each kid and wife get the maximum amount of income, but remain tax free. Consequently, instead of being taxed at an income of $100,000, he’s only taxed at $60,000.
in the US, it is usually better to file jointly, so it don’t matter if you give income to your wife or yourself. And kids get a break on the first 1900 of income, so he must have about 20 kids.
on the annuity question, you could sell the 20 year annuity off and get a larger lump sum than 105$ million.