Top 5 Things to Do If You Win the Lottery

Could you be the winner of a record Mega Millions jackpot? Pay attention: you will want to read these top five tips for things to do if you win the lottery to maximize your prize.

The moment you’ve always dreamed about has come true—you’ve won the lottery, and you’ve won BIG. Once you’ve seen those lottery results flash before your eyes (or received that jaw-dropping email from Jackpocket), the biggest question of what should you do if you win the lottery is, “Now what?”

First Steps After Winning the Lottery

Your head is probably spinning with all the possibilities — cars, homes, paying off debt, a trip around the world and more. The world is your oyster with that amount of money at hand. There’s a lot to think about and a plan to make sure you don’t squander your newfound wealth, but here are some things to consider first.

Take a Deep Breath and Stay Calm

Be excited, celebrate and go out to a nice dinner, but be prepared when your significant other stares at you for suggesting a restaurant you couldn’t previously afford. Perhaps it’s time to let them in on the secret. But once that’s over, it’s time to take a deep breath and calm yourself.

It’s the excitement of winning that drives lottery enthusiasts to spend money quickly. Before they know it, they haven’t saved anything for their future or their children and grandchildren. We don’t want that to happen, do we? If you’re wondering, “What should I do if I win the lottery?” We’ve got you covered.

Top 5 Things to Do If You Win the Lottery

Follow these five steps to ensure that you take care of your immediate financial goals (like paying off debt), plan for the future, and have great fun along the way.

Step 1: Sign your ticket

A lottery ticket is what is known as a bearer instrument. This means that whoever holds the winning ticket can claim the prize. Sign the back of the ticket immediately to prevent someone else from getting their hands on it! The signature is proof that the ticket belongs to you. Once you’ve signed the ticket, take a picture of the front and back of the ticket, just in case it gets lost. Rather than carrying the ticket around, store it in a safe place like a lockable drawer or fireproof safe until you can get to the lottery commission to claim your prize.

With Jackpocket, if your lottery prize is above the threshold amount for your state, we securely transfer your physical ticket to you so that you can claim your prize from the state lottery. Sign the back of your lottery ticket as soon as you have it in your hands.

Another tip for what to do after you win the lottery is to find out from your state’s lottery website how long you have to claim your prize. This varies by state and can be anywhere from 60 days to one year. This is important because missing this deadline means forfeiture of your winnings. You want to make sure you get your winnings within the allotted time frame but have the opportunity to make an informed decision about how to claim your prize.

>> Winner winner chicken dinner: We caught up with our first $1 million winner on his Powerball Anniversary

Step 2: Avoid Announcing Your Win Immediately

What should you do if you’ve won the lottery? Consider your privacy. You’re excited about your big win and likely want to shout it from the rooftops. A good rule of thumb: Tell your immediate family first and have them keep it quiet until you are ready to spread the word (or just keep it to yourself for a while). If you don’t want the details of your win out in the world, you may consider hiring a firm to potentially scrub your information from the internet and monitor what is said about you to avoid misinformation. Also, find out if you can claim your winnings in your state anonymously or through a trust to protect your identity.

>> Check out our guide: Lottery winners can stay anonymous in these states

Step 3: Talk to the professionals

Before you claim your prize, you will want to talk to financial advisors, lawyers and accountants to understand how to best deal with your new wealth. They will come up with things you likely won’t think of as you are excitedly putting together your game plan (like maybe investing for your own future). They can help you crunch the numbers and decide if a one-time cash payment or annual payments over time (the important lump sum vs. annuity question) is right for you and your situation (think taxes).

Involving a financial planner is important, as they will help you analyze each option and determine what will give you the most money in the long run. If you take the lump sum and you and your team plan carefully, you could grow your winnings to more than you would have gotten from the annuity payments. If you think there is a high risk of overspending, taking the annuity payments may be a better option for you.

Lawyers can help set up trusts and estate plans, and financial planners set up investment accounts so you’re ready to distribute your money and invest for the future appropriately. They will be imperative when deciding what to do if you win the lottery. Accountants help maximize your income and minimize your tax burden to the fullest extent possible.

>> Learn more: How lottery winnings are taxed by state.

Step 4: Finalize your plan

Now that you’ve talked to the professionals and understand the different possibilities for your financial future, you can cement your plan. Your plan will go beyond deciding to accept your prize in a lump sum or annuity and will need to include factors like estate planning, your will, current debt payments, and investments. Don’t forget to set aside a fixed amount for splurges—after all, you want to enjoy your money, too! This is highly important because, with a spending and investing plan, you can be sure to achieve your goals, have some fun and ensure there is money for the future.

⚡️ Feeling inspired? Get in the game on the Jackpocket lottery app for mobile or desktop.

Step 5: Claim your prize

Check out our step-by-step guide on how to claim a lottery prize from home. Otherwise, you'll make an appointment to visit your local state lottery claim center. Each state will have different rules around whether you can claim your prize at a satellite claim center or from the lottery headquarters. It’s often based on the amount being claimed. See your state’s lottery website for more information and to obtain any necessary claim forms.

What should you do if you won the lottery but got your ticket in another state? Get ready for a road trip. You will need to travel back to the state where you got your ticket to claim your prize. In this case, you will want to review that state’s lottery website (instead of your own state) to determine where to go to claim your prize if you can’t claim it by mail. That state’s lottery website will have everything you need to know to claim a prize in that state.

What happens if you win on Jackpocket?

You might be thinking you ordered your lottery tickets online on Jackpocket. What happens if you win the lottery using a lottery app?

If you win a lottery prize on Jackpocket, the app will automatically credit your account for the amount won up to the threshold amount in your state (usually ~$600). If you win over the threshold, we will arrange to securely send your ticket to you so you can claim your winnings with your state lottery.

What to Do Once You Claim Your lottery winnings

Speak with a financial advisor before heading to the bank (don’t just walk up to a teller with a check for a huge amount of money in your hands) and discuss your options for holding or investing large amounts of money. Individual accounts are only insured by the government for up to $250,000, so any amount in excess isn’t protected. You may consider spreading the money among different accounts if not different banks.

One of the most important things to do if you win the lottery is to create a new budget. Take the suggestions of your financial advisors and lawyers into account when creating your new budget. Budgeting ensures you have plenty of money to pay the bills, have some fun, and save for the future. A charity or giving plan can also be a part of your annual and monthly budgeting plan.

Ready to play? It's easy to get in the game with Jackpocket. Try all your favorite lottery games on Jackpocket, and check out our Smart Order feature to ensure you never miss a lottery drawing with your lucky numbers.