How Does a Blind Trust Work for Lottery Winners?
Function of a Trust A blind trust was originally established to allow an executor to handle funds while beneficiaries remained confidential. This idea might appeal to a lottery winner who wants to avoid the media attention and estrangement from friends and family. There are many stories of lottery winners being bombarded with “new” relatives appearing and asking for money, friends with requests and even lawsuits brought by those who “believe” that the ticket should be shared. A way to avoid this is to set up a blind trust. The attorney goes to redeem the ticket, without revealing the name of the ticket recipient. You remain unanimous and newly rich. No one is the wiser. Benefits to the Lottery Winner A trust works well for a lottery winner. She appoints an attorney as executor when the trust is set up. As a beneficiary, the winner’s name is not disclosed to the public. The trust also works as a financial tool to help lottery winners. With the help of financial advisers, the executor ma
