Skip to content
cars — Food-and-drink — Travel — Relationships — Fashion-and-beauty — Investing — Mortgages — Savings — Insurance — Lifestyle

Winning the EuroMillions: Top Priority Revealed from Our Poll...

Raging enthusiasm for EuroMillions persists, as the staggering £208 million prize remains unclaimed in tomorrow's triple draw rollover.

,   and  Administrator
3 min read
The excitement for EuroMillions persists, as the mammoth £208 million prize remains unclaimed in...
The excitement for EuroMillions persists, as the mammoth £208 million prize remains unclaimed in the forthcoming triple rollover draw tomorrow.

Winning the EuroMillions: Top Priority Revealed from Our Poll...

Lottery mania is rampant, with the colossal £208 million jackpot still up for grabs in tonight's triple rollover EuroMillions draw. If fortune favors the bold, winners could find themselves with more money than they know what to do with. But if you defy the astronomical odds and come out on top, what's the first thing you'd do?

That's the question posed to This is Money and Mail Online readers in a recent poll, with an overwhelming 23,405 votes cast. The options were clear: pay off mortgage, buy a house, save/invest, travel, and help family/friends.

While every winner's agenda will no doubt include items from all five categories, the poll revealed that helping loved ones was the priority for 35% of respondents. A heartwarming indication that relationships come first, even in the face of life-changing wealth.

Paying off the mortgage and buying a house were both close seconds with 21% of the vote each, while travel and saving/investing lagged behind at 15% and 9%, respectively.

But before you reach for your checkbook to shower family and friends with gifts, beware. Gifting large sums of money requires careful consideration, warns Matt Swatton of wealth management firm Cannacord Wealth. He has counseled lottery winners on the unexpected challenges that come with winning, and he shares his advice in a recent article.

"Many winners want to share their good fortune with family and friends," Swatton writes. "But while gifting can be incredibly rewarding, it also comes with emotional and financial implications."

Large gifts can change the lives—and your relationships—with the recipients, Swatton explains. And it's essential to consider whether you can afford such gifts without compromising your own future.

Gift tax is another consideration in the UK. Inheritance tax (IHT) generally does not apply to gifts made during your lifetime, but there are exemptions. One such exemption is the annual exemption of £3,000, which allows you to gift that amount each year without it being added to your estate for IHT purposes.

Gifts above the annual exemption may be subject to IHT if you die within seven years of making the gift. To mitigate this, you could set aside money to cover any potential tax bill, establish a trust to manage the assets, or take out an insurance policy that directly matches the tax liability and reduces over seven years.

While family and friends are top of mind for most lottery winners, it's crucial to consider the order of your gifts, especially if you plan to make provision for younger family members using a trust to avoid unnecessary tax charges.

Tax implications, relationship considerations, and affordability aside, winning the lottery presents a unique opportunity to fulfill dreams, support loved ones, and secure a comfortable future. With careful planning, thoughtful gifting, and sound financial guidance, even the unthinkable becomes possible.

Sources

  1. Finance.gov.uk. 2021. Inheritance Tax - Gifts. [online] Available at: https://www.gov.uk/inheritance-tax/gifts
  2. HMRC.gov.uk. 2021. Rules for gifts. [online] Available at: https://www.gov.uk/guidance/inheritance-tax-rules-for-gifts
  3. Moneyadviceservice.org.uk. 2021. What to do if you win the lottery. [online] Available at: https://www.moneyadviceservice.org.uk/en/articles/what-to-do-if-you-win-the-lottery
  4. Gov.uk. 2021. Income Tax - Lump sums from Trusts and Estates. [online] Available at: https://www.gov.uk/manage-your-personal-tax-account/lump-sums-from-trusts-and-estates
  5. Despite the allure of traveling and indulging in fashion-and-beauty or food-and-drink, the poll results showed that a significant 35% of lottery winners prioritize helping their family and friends.
  6. Advisors such as Matt Swatton from Cannacord Wealth encourage caution when gifting large sums of money, stating that while it can be rewarding, it also comes with emotional and financial implications.
  7. In the United Kingdom, tax implications are a crucial aspect when giving gifts above the annual exemption; these gifts may be subject to Inheritance Tax if the donor dies within seven years of making the gift.
  8. To mitigate possible IHT, winners can set aside money to cover potential tax bills, establish trusts to manage assets, or take out insurance policies that directly match the tax liability over a period of seven years.
  9. As sound financial guidance is essential for managing the windfall from a lottery win, winners should consider ordering their gifts, considering tax implications, relationship considerations, and affordability, to secure a comfortable lifestyle and fulfill their dreams.

Read also:

    Related

    Latest