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Let's say you just won the lottery (in the US). What is the smartest way to give money to your friends? (lemmy.world)

submitted 3 months ago by [email protected] to c/[email protected]

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I don't know why stuff like this keeps me up at night but let's pretend you just won some obscene amount and there's a lot of people you'd like to set up for life. Let's say after taxes you have $300m in your account

You can give someone up to 18k a year without incurring a gift tax and while that'd definitely be a nice bump to their income, you still have way more money than you know what to do with. So what's the smartest way to hook them up?

A couple of options I've considered are:

Give them a lump sum of $X million. They eat the taxes the first year and handle the savings themselves.
Create a company and hire them to "work" one hour a month for a big salary. If you put $25m in an account, the interest covers the salary. They get a steady bonus income with the added bonus of getting the best insurance available. Is that legal?
Set up a "shared" checking account they can use to pay for...whatever. But would these expenses count towards the gift tax? I do not know.
Buy houses and let them live there rent-free. I don't really like this one because I don't want to be a lord to my friends and family.

For the record, I did not win the lottery. I don't even play it. I'm just working out the details in a fantasy world for some reason

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[–] [email protected] 4 points 3 months ago (2 children)

Re:4:
Make them sign leases that they can terminate at any time, but you cannot. Set the rent at $1 a month. Duration 10 years.
Congrats, you have given away wealth without taxes

[–] [email protected] 4 points 3 months ago

The courts will see right through that and make your friends pay taxes on what they consider reasonable rent. You just hope there is no audit.

[–] [email protected] 2 points 3 months ago

Oh that'd be good! It would avoid them feeling like they have to be artificially nice to me.

My dream situation is to buy some land, split it into smaller plots, and let my friends design their perfect home (within reason). Most of us live pretty far from each other now.... I'd love to be within walking distance again