Mega Millions At $970 Million: Lump Sum Or Annuity?

Oct. 19--With the Mega Millions jackpot skyrocketing to $970 million, and the next drawing set for tonight at 11, here are some things to know if you're hoping to head into the weekend as a multimillionaire.

What are the odds?

Players have a one in 302,575,350 chance of winning the jackpot with the Mega Ball, one in 12,607,306 chance of winning

$1 million and a one in 931,001 chance of winning $10,000 with the Mega Ball, according to the Mega Millions website.

Your numbers match! What should you do first?

Find a qualified estate lawyer, suggests Mark Henry, certified estate planner and founder/CEO of Alloy Wealth Management in Charlotte, North Carolina.

"Don't sign anything with anyone until you speak to a few" attorneys, he said. "Find a lawyer you're confident in."

Is it better to take a lump sum or an annuity?

"You never want to speak in complete generalities, but lump sum tends to work better," Henry said. "A dollar today is worth more to you and me because of inflation in 10 years. On paper, it may seem like you're getting more with the annuity option, but because you're waiting, the purchasing power is less."

What about taxes?

For winners of $5,000 or more, all states automatically deduct 24 percent in federal taxes. Some states, including California, don't withhold taxes from lottery winnings, according to the Associated Press.

Can the winner remain anonymous?

Anyone who wins big in Pennsylvania should expect to hear from old friends and long-lost family members. Winners can remain anonymous in only six states -- Delaware, Kansas, Maryland, North Dakota, Ohio and South Carolina, according to the Associated Press.

Contact the writer: [email protected]; 570-348-9100 x5365; @droslerTT on Twitter

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