[Rumor]

ABC News: Tough Luck: Cancer Victim Wins $1 Million, but Can't Get the Money

And one of Schenk's $5 High Stakes Blackjack tickets hit it big, winning the $1 million prize. It was more than enough money to pay for the $400,000 in cancer treatments that he desires.

But Schenk's dream-come-true soon turned into a nightmare. When he contacted the New York State Lottery about paying him the money in a lump sum, he learned that the rules of that particular game mandate a payout over 20 years, providing him only $50,000 a year. And he's been given only 12 to 18 months to live.

"Three times we talked to the lottery and they've said that they can't do it," says Schenk, who recently got a brush cut because his hair has started to fall out. "That was more depressing than anything."

Poor guy. There are law firms that specialize in expediting settlements like this, but take a huge chunk.

[nonhuman]

Geeze. That's rough.

I thought you could usually get the money over 20 years or get a smaller amount in one lump sum. Even if the lottery itself doesn't provide for that, I know I've seen commercials for companies that will give you a lump sum in exchange for your annual payments. Hell, I'll do it. If I can get his payout over the next 20 years, I'll spot him the $400,000.

[::maroma::]

I hope that a kind hearted lawyer (if one exists) takes this case and gets him the money, and either does it for free or takes a very low fee. Talk about being cold and sticking to the rules no matter what. That lottery office is despicable. How can those people sleep at night?

[Big Mac]

In the California lottery, you have to choose between lump sum or the annual pay out at the time of purchase. And California only allowed for lump sums in the last decade. The guy probably could trade it in to one of those companies, but the publicity he can get over the issue must be pretty valuable to him in the mean time.

[OldManMac]

Originally Posted by ::maroma:: 

I hope that a kind hearted lawyer (if one exists) takes this case and gets him the money, and either does it for free or takes a very low fee. Talk about being cold and sticking to the rules no matter what. That lottery office is despicable. How can those people sleep at night?

It has nothing to do with whether the lawyer is kind hearted or not. The state rules only allow the money to be paid out in installments, period, and that is the law, so there isn't a lawyer in the world who can change that. He has contacted his representative and there have been attempts to get the law rewritten, but it may not happen in time. It has nothing to do with the lottery people being "despicable." The law is the law.

[::maroma::]

Originally Posted by KarlG 

It has nothing to do with whether the lawyer is kind hearted or not. The state rules only allow the money to be paid out in installments, period, and that is the law, so there isn't a lawyer in the world who can change that. He has contacted his representative and there have been attempts to get the law rewritten, but it may not happen in time. It has nothing to do with the lottery people being "despicable." The law is the law.

Fine, whatever. Then the law is despicable. If everyone is looking at this situation and saying to themselves "this is wrong" then the law is wrong. But it doesn't matter. Its not me, so who cares.

[moonmonkey]

If he gets the whole settlement upon his death then any bank in the world would loan him the money he needs, the fact that we are hearing about this makes me feels that there is more to this story than we know.

[Calimus]

You don't get the full amount upon your death. Whatever is left they keep.

[olePigeon]

There are several companies that will buy the full 20-year amount and give you a lump sum (something like 60%.) That'd cover his cancer treatments.

[OldManMac]

http://www.chicagotribune.com/news/n...ationworld-hed

There seems to be more to this story. According to this article, he was offered a lump sum payment of $400,000 (the article doesn't say from where), but that would leave him with only $200,000 after taxes, which isn't enough to cover the possible consequences during surgery.

Also, depending on which state you live in, your estate may still receive the funds after you die. http://www.cnn.com/US/9611/09/briefs...ref=sitesearch

[OldManMac]

Originally Posted by olePigeon 

There are several companies that will buy the full 20-year amount and give you a lump sum (something like 60%.) That'd cover his cancer treatments.

If you take the lump sum, you don't get the full amount. The lottery gives you the amount of money they figure you'd need to invest, over a certain time period, to get to the amount they advertise as the winning amount. So, if you "win" $1 million, you actually only get about $400,000, which, if you invest it at a certain rate, over a certain time period, eventually gets you to $1 million. You also have to pay taxes on the $400,000, so it would take you even longer to get to that $1 million mark. A lot of people seem to be under the misperception that they would actually win the full amount advertised if they hit the jackpot; that's not the case.

[olePigeon]

Originally Posted by KarlG 

If you take the lump sum, you don't get the full amount. The lottery gives you the amount of money they figure you'd need to invest, over a certain time period, to get to the amount they advertise as the winning amount. So, if you "win" $1 million, you actually only get about $400,000, which, if you invest it at a certain rate, over a certain time period, eventually gets you to $1 million. You also have to pay taxes on the $400,000, so it would take you even longer to get to that $1 million mark. A lot of people seem to be under the misperception that they would actually win the full amount advertised if they hit the jackpot; that's not the case.

I know that, that's why I said there are companies that will buy a 20-year payment from you, if he wanted a higher lump sum. I always opt for the 20-year payment because of that option.

[OldManMac]

They'll buy the 20 year lump sum from you, but at a very discounted amount, because you have to assign your winnings to them, and then they have to wait around for the money. I doubt they'd give him $400,000 for money they'd have to wait 20 years to realize the full benefit of. If that were the case, the company could invest $400,000 at around 9%, which is possible, and double their investment in ten years, and then double it again in another ten years, which means they'd have $1,600,000 after twenty years. They're not in this for charity; these companies operate to make money, and they often do it by hooking lottery winners who've already spent more than their first couple of years' winnings, and need some quick cash to get themselves out of debt.

The first $1 million lottery winner in Michigan, back in 1972, was a guy named Hermus Milsaps, and he got $50K a year for twenty years. By the end of his third or fourth year, he was already deep in debt, as he borrowed heavily against his winnings, to buy superflous things like new cars, and to have his basement redecorated to the tune of $25K, which included putting carpeting halfway up the walls, etc. He was in his early 40s when he won; when his 20 years was up, he didn't have a pot to piss in. If you weren't reasonable with your money before you win, you won't be reasonable with it afterward.

[moonmonkey]

Originally Posted by KarlG 

If you take the lump sum, you don't get the full amount. The lottery gives you the amount of money they figure you'd need to invest, over a certain time period, to get to the amount they advertise as the winning amount. So, if you "win" $1 million, you actually only get about $400,000, which, if you invest it at a certain rate, over a certain time period, eventually gets you to $1 million. You also have to pay taxes on the $400,000, so it would take you even longer to get to that $1 million mark. A lot of people seem to be under the misperception that they would actually win the full amount advertised if they hit the jackpot; that's not the case.

In Hong Kong if you win 50 Million you get 50 Million with no tax, thats the way it should be.

[TETENAL]

I think everywhere else in the world, if you win x you get x. At once. Without tax.

Only in America people are content with being defrauded.

[Peder Rice]

I wonder if the tax man allows you to deduct money spent on certain treatments, in this case cancer treatments. Be there an accountant handy?

[Peder Rice]

Originally Posted by TETENAL 

I think everywhere else in the world, if you win x you get x. At once. Without tax.

Only in America people are content with being defrauded.

The majority of Americans (and sorry, I can't remember where I found this, so you'll have to trust me) in the lowest 20% of incomes believe that the lottery and NASCAR racing are the best ways to get ahead in life. Oh the proles....

[The Godfather]

Originally Posted by TETENAL 

I think everywhere else in the world, if you win x you get x. At once. Without tax.

Only in America people are content with being defrauded.

Yeah. But if this were the case, if you win x, the lottery company has to dish out 1.5x. They would feel cheated too. The current US way is fine if the tax subtraction was disclosed in the ticket's fine print.

[Eriamjh]

Medical expenses are deductible (to a point).

But most important, there are companies who "buy out" your winnings for lump sum payments. You basically get a percentage of the total up front and they take the payments over the next 20 years.

[residentEvil]

Originally Posted by Eriamjh 

...

But most important, there are companies who "buy out" your winnings for lump sum payments. You basically get a percentage of the total up front and they take the payments over the next 20 years.

yeah, there have been 6 posts saying the same thing. welcome to the party. did you read the thread?

[Cadaver]

This sounds like an Alanis Morissette song.