The Lottery and Estate Planning
Wednesday, November 28th, 2012
If a resident of Maryland wins the Powerball drawing tonight, the winnings will be subject to a 25% federal tax and an 8.5% state tax.
If a winner passes away after claiming the check and proper estate planning is not completed, the majority of the winnings would be subject to the Estate Tax (16%), as well as the Federal Estate Tax (35%) and possibly the Inheritance Tax (10%).
Even if you are not a lottery winner, proper estate planning is essential to make sure that you, not the state, control how your assets are distributed upon your death.
Frankel Sims Law provides common sense solutions to complex legal issues for clients at various income levels, not just lottery winners.
Good luck with your numbers!