Are lottery winnings transferable?

What happens if the winner dies? Can the winnings be transferred to relatives?

Answers( 1 )

Here is an article that perfectly answers your question:

In the UK, prizes are given in a tax-free lump sum. The prize can be claimed by a group of people as long as they present the winning ticket. Since UK lottery prizes have a one-time redemption option, the winners can simply get the money and give it to anyone if they wish to do so.

In the US, winners have the option to receive the prize in a lump sum or in an annuity. If the winner chooses the annuity option and dies even before the entire prize has been paid out, the remaining amount will be given to their designated beneficiary. It is important to note that annuity payments cannot be transferred by a living winner to another person. It is only through death that this type of payment option becomes transferable.