And
here is a text book example of what NOT to do when you win a large sum of money in the lottery.
1) She claimed the prize the next day.
2) She quit her job the day after.
3) She took the lump sum (though seeing as she's a single person with adult children, the lump sum isn't such a bad move here I guess).
4) She claimed the prize as an individual.
In case any of you ever win the lottery, DON'T rush into claiming the prize. You do not have to claim it right away. I don't remember off-hand, but the prize can be claimed several months after the fact. Instead of claiming the prize and quitting your job right away, the first thing you should do is find a lawyer and a financial planner, both of whom you trust, and bring them both in for a face-to-face meeting to discuss your options. The key point is this: don't make hasty decisions.
Claiming a large jackpot through a trust provides much more security for the money. As an individual, some jackwagon could get themselves hurt on your property and sue you for big bucks because their lawyer will know you've got it. Having a trust puts a legal barrier in the way of those types of shenanigans.
I'm a fan of taking the annuity option but that always depends on circumstances (the winner's age, family situation, and how states treat the transfer of such annuities to spouses upon the death of the winner). Sure, it sounds awesome to take $400 million right now, but where are you going to put it? FDIC only guarantees up to $250,000, so you'll either need a ton of accounts or a personal vault. Taking the annuity is guaranteed money for three decades. Given the crappy investment environment we have right now, you're probably better off taking the annuity anyway. For tax purposes, it allows you to give to charities over 30 years, rather than racking your brain right now for suitable places to make big gives to. After the income tax year is over, you won't be able to make big donations and have them count towards lowering your taxable income.
This story just...