How lottery payouts work?

Just want to know my options in case I win.

Answers( 1 )

There are different ways lottery prizes are paid out, depending on the country you are located in. In the US, big jackpot winners are offered the option to choose between a one-time payment (lump sum) or an annuity payment. In other countries, including France, the UK, Canada, Australia, Germany, Ireland, Italy, New Zealand and Finland, the prizes are given as one duty-free lump sum to the winner.

The annuity option typically pays out in a period of 20 to 30 years. However, there are lottery contests which offer a "lifetime" prize and they automatically pay in annuities.

Some lottery prizes are subject to tax. To know more about lottery taxes, consult our answer for the question below: