What if lottery winner dies

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Each state has a different way to process estates with and without a will. Consult an estate planning attorney in your area to thoroughly discuss what you need to do to guarantee that your final wishes are carried out. All lottery winnings are taxed by the state and federal governments. As the winner, you are responsible for filing and paying those taxes. Upon your death, your estate and beneficiaries will be responsible for those taxes.

Your beneficiaries also may be responsible for inheritance taxes of up to 40 percent, depending on the total size of your estate. Discuss your estate planning options with a certified financial planner who specializes in inheritance issues.

Based in central Georgia, Louise Bennett has been writing professionally since Her business, financial and career articles have appeared in hundreds of print and online publications. An avid reader, Bennett is currently working on her first novel. Some US states impose federal estate taxes against lottery winnings that are transferred to an heir.

That's a huge percentage of your money, so if you're a big-time lottery winner and you want to do the best thing for your heirs, it's best to get advice from an expert more familiar with your local laws. Find a tax attorney from your area, or talk to any of the best lottery lawyers you can find. We also suggest hiring a financial adviser to find the ideal setup for your estate.