This Friday’s California Mega Millions jackpot will be one of the largest jackpots in history — $325 Million.  We all dream of winning a prize of like this but are we prepared if we do.  Most lottery winners are not prepared and many have ended up worse off after winning than they were before.  Here is a list of several things you should do before claiming your prize.

Don’t tell any one.  You’ll be amazed at how many “friends” you have once words gets around.  A lot of reporters could be asking to interview you.  And just about every unscrupulous charity will be knocking on your door or calling to get a piece of you winnings.

Keep the ticket safe.  Put the ticket in a safety deposit box.  Put it in a plastic bag in the back of the freezer.  Do whatever you can to keep the ticket safe.  If you loose the ticket or it gets damaged you could be out millions of dollars.

Double and triple check you winning numbers and the drawing date for the ticket.  You want to make sure to truly did win.  It’d be very disappointing to think you’ve won $300 million and then find out you were looking at the wrong ticket.
Don’t collect right away.  Take your time.  Complete all the steps here before you collect your prize.  Rushing to collect you prize could put you and your prize at risk.
Get an unlisted phone number.  As soon as people find out you’ve won you old phone will be ringing non-stop.  Change you phone number and get rid of this headache before it starts. 

Arrange for a special bank account.  You can’t just deposit millions of dollar into a normal chekcing or savings account.  Go to your bank of choice and make arrangements with them to open a new account.  The winnings will be transferred electronically to your account.  So the account needs to be set up ahead of time.

Build a team of advisors.  Get professional advisor to help you manage you winnings.  At a minimum you will want a tax attorney, estate planner, and a financial planner.  You will be in a whole new tax world whenyou receive your winnings.  A tax attorney is a must to navigate these new treacherous waters you are in.  A financial planner is necessary to help you plan how to make the most of your winnings.  A good financial planner will help you map out short term and long term plans for managing and inveting your winnings.  Some people would say you don’t need an estate planner but I think they’d be wrong.  An estate planner will help you plan out what happens to you fortune when you die.  Inheritance tax can take 50% or more of the money in your estate before anyone even sees a dime of that money.  A good estate planner will help you organize you estate so you loose little to no money to inheritance taxes.

Lump sum or payments.  In general, you are better off taking a lump sum payment.  A lump sum is subject to current tax rates.  Tax rates may change over time so payments would be subject to the tax rate at the time each payment is made.  You will also have a large amount to invest now giving you greater earnings in the short term.
Think about your job.  Take some time off work.  You will be very busy getting everything organized to collect your winnings.  During this time decide if you want to keep your job or not.  Many winners go ahead and quite.  But if you enjoy your work you may want to stick around.  Don’t decide right away.  Take the time to be certain of you decision.  If you are going to quit wait until you receive your money.  You don’t want to quit your job then find out the next day that did you not win the lottery.

Have a plan.  This point cannot be emphasized enough.  If you want to be successful with your fortune you need a solid plan for what you’re going to do.  The professional advisors you gathered around you will help you develop concrete goals and plans for how to manage you fortune.  Without a plan you could end up line the many winners would wond up owing more than they won after only a year or two.

Once you have everything in place go claim your prize and enjoy.  And make sure you set aside a some fun money.  If I’d won I would take everyone in my group at work out to a nice lunch, take family and friends to our favorite restaurant in Pebble Beach, and take the kids to Disney World for a week or two.