Reply #11: A question

[booksenkatz]

Why do lottery winners almost invariably prefer to take winnings in a smaller lump sum up front, rather than receive the full payout over a period of years? It seems to me that a full payout, put into trust, could do an enormous amount of good in this world. Is it because the lottery would not pay into your estate if you died before the 20-years was up (or whatever the time period is)? To my uneducated-about-lotteries ear, it sounds as if a person is actually being greedier by "needing" all of that money NOW. Sure, you'd want to buy a few things and make sure you and your family are taken care of financially. But beyond that, that amount of money could actually help so many people and causes! I grew up reading columns written by some zillionaire named Percy Something who changed so many lives with his millions. I always thought that would be an amazing way to spend your money, if you had it.

Maybe someone could explain to me how it works.