Jackpot! What now?

Everyone imagines what they would do if they won the lottery—trips to take, cars to buy, jobs to quit. However, the first thing any new lottery winner should do is call their lawyer.

This was the advice shared at a recent Law Over Lunch program hosted by the Carrico Center for Pro Bono & Public Service.

Carolyn White, L’93, managing attorney at Midlothian Estate and Elder Law, and Frances Goldman, owner of The Tax Complex led attendees through an entertaining and informative discussion about why legal planning should be at the top of the to-do list for anyone who experiences a windfall.

“Although the lottery may be the windfall that receives the most attention, attorneys need to advise their clients on how best to prepare for other, more common types of windfalls, such as inheritances or litigation settlements,” said Professor Tara Casey, director of the Carrico Center.

“Taxes, bad actors, and statutory defaults for distribution can all be avoided or minimized with some basic steps,” said White. “In order to identify the most useful steps, recipients simply need a bit of information about what kind of windfall they’re getting.”

“Tax law related work is neither dull nor stagnant, but nuanced and constantly evolving—even with something that seems so obvious, like winning the lottery, receiving an inheritance, or a lawsuit settlement,” added Goldman. “Life is too short to not enjoy the challenges!”

According to Casey, the key to fully enjoying a windfall lies in making the right decisions early in the process. “Whether the expected or unexpected, those early decisions may make the difference between financial security and debt anxiety,” she said.