Legal Question in Business Law in California
I just won the lottery and I would like to accept the prize through a blind trust to retain anonymity. is this possible and what dangers are there?
2 Answers from Attorneys
You should hire an attorney to advise and represent you. You have a few options but determining the best one requires analysis of your entire situation.
A blind trust is probably NOT what you want. With a blind trust, the trustee(s) manage everything, and the only one who is "blind: is you, the beneficiary -- you would have no idea how your money was invested. Blind trusts are for elected officials, not lotter winners.
I think your question should be addressed to the lottery officials. They would probably have the best idea how to prevent unwanted publicity. I'm sure it's a concern you share with many other winners.
Of course, the IRS and FTB will know, because the lottery will be sending them a 1099, if not withholding a chunk of your winnings for them, probably both.
I would suggest finding a very wise advisor who can direct you into a broad spectrum of suitably conservative investments on a modest fee-for-services basis -- no commissions to the advisor, just so much per hour, nothing more.