Plan A and B

Part 3
A very practical reason for getting your life in order before you win is to avoid using your jackpot to pay for past "indiscretions". Most states crosscheck each winner's name against federal, state, and local agency files before they payout a penny. One Massachusetts Lottery winner of a modest (in lottery terms) $25,000 jackpot received a net check of only $6,000 after the state deducted $19,000 for previous welfare payments made to the player. Further, the state considered him to have earned income of $25,000 and removed him from the welfare rolls, leaving him worse off after he won than before! Other areas commonly checked include: U.S. citizenship status; outstanding arrest warrants or court judgments; federal, state, and local taxes owed; alimony or child support delinquency; student loan delinquency; even outstanding moving violations or unpaid parking tickets. Be aware: your jackpot can pass through many hands before placed in your pocket.