This booming legal loophole allowed a $25 million scratch off lottery winner to hide their identity
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Want to stay anonymous when you win that giant lottery jackpot and avoid all the public hassles? You can in some states.
In Massachusetts, where lottery winners cannot hide their identities directly, the use of trusts to claim prizes is becoming increasingly popular.
Mark William Bracken, Executive Director of the Massachusetts State Lottery, explained:
“Prizes can be claimed by a trust or other legal entities that fulfil the definition of a legal person. The identity of the trustee or legal representative is made public."
He also noted a recent trend: "Over the last several years, we have seen an increase in the number of large prizes claimed by trusts.”
This trend has been highlighted by the recent claiming of all three $25 million jackpot prizes from the state's highest-paying scratch-off card game, "Billion Dollar Extravaganza."
State lottery officials announced on Wednesday that a second winner of this lucrative game had claimed their jackpot.
The prize was claimed on behalf of the winner by a trustee, attorney Thomas Percy.
And recently, with the $25 million top prize gone, there are still four $2 million prizes.
Each ticket in this game, known for being the state's most expensive scratch-off, costs $50, but it provides better odds than other state lotto games, offering a 1 in 4 chance of winning.
The identity of this second jackpot winner is still a mystery, as Percy, a legal representative, accepted the prize on their behalf.
Percy, in an interview with CBS News, mentioned that the winner had recently made some extra money which enabled him to afford the pricey game.
The winning ticket was bought at Red's on Brayton Avenue in Fall River, earning the store a $50,000 bonus for selling it. Percy accepted a lump sum payment of $16,250,000 for the winner.
Describing the winner, Percy said, "The winner is a kind and thoughtful person who is looking to do the right things in life, and winning this prize will help them accomplish this."
He further added that the winner is "a family person, humble, and very appreciative."
This approach to claiming lottery winnings was also seen in August when the first jackpot prize of the "Billion Dollar Extravaganza" was claimed by a trust representative.
In Massachusetts, while winners can't remain anonymous, they have the option to create a trust, appointing a trustee to collect and deposit the funds into an account accessible to them.
This year, two other significant lotto winners in Massachusetts, who won $33 million and $31 million in Mega Millions games, also chose to come forward through trusts.
With the rise in trusts as a method for claiming lottery winnings, it seems that Massachusetts lottery players are finding creative ways to maintain their privacy while enjoying their windfalls.
The $50 'Billion Dollar Extravaganza' tickets have helped fuel an increase in scratch ticket sales in the state. A recent report from the Massachusetts Lottery says instant ticket sales were up $15.1 million this October.
