Massachusetts lottery winner names record $29.71M jackpot trust after someone who reminds them of Mr. Potato Head

That’s a strategy the winner of the largest-ever prize winner in Megabucks history employed recently after winning $29.71 million — only this winner had an appreciation for the ridiculous.

A nod to Mr. Potato Head

The money was given to the “Mr. Potato Head Trust of Springfield” on Oct. 28. Trustee Hyman Darling said the name was chosen by the winner in honor of, well, someone they know who reminded them of Mr. Potato Head. The ticket was purchased in Holyoke, Mass., and the winner took a lump sum of $19,635,669 before taxes.

The anonymous winner isn’t the first to employ this strategy. Last year, the winner of a $15 million prize, also in Holyoke, took a one-time cash payment of $9.75 million before taxes and had it claimed by the trustee of the Dublin Street Nominee Trust.

Massachusetts requires the winners of large lottery prizes to be identified, and it’s one of at least 22 states that does so (some states allow partial anonymity). Not all of those states let you bypass public disclosure with a trust or LLC, but some, including Massachusetts, will.

The loophole offers a degree of protection, but it also comes at a financial cost, as the lawyer overseeing the trust will charge fees. (Of course, when you’ve just pocketed tens of millions of dollars, you can probably afford the legal bill.)

The downside of sudden wealth

Trusts can also help you put some limits on spending, depending on how they’re set up, which could ensure you’re able to enjoy your newfound wealth without blowing the money recklessly.

There are plenty of cautionary tales of lottery winners who found their multimillion dollar wins to be curses, rather than blessings. At the very least, it can be said that winning the lottery doesn’t always improve your life.