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Mystery trust beats the clock for lottery jackpot
http://news.yahoo.com/mystery-trust-beats-clock-lottery-jackpot-213010349.html ^

Posted on 12/30/2011 6:39:53 PM PST by Orange1998

IOWA CITY, Iowa (AP) — Iowa Lottery officials had more questions than answers Friday as they tried to unravel the stunning mystery behind a year-old winning ticket turned in less than two hours before Thursday's deadline for a jackpot worth up to $14.3 million.

Among the questions: Who actually bought the Hot Lotto ticket? Who are members of the trust that stepped forward to claim the prize less than two hours before it expired? Where was the ticket for 364 days, and why did the trustee risk sending it by FedEx to Des Moines one day before the deadline?

Here's what they know: Two attorneys with Des Moines-based Davis Brown Law Firm showed up at Iowa Lottery headquarters at 2:10 p.m. Thursday with the winning ticket before the 4 p.m. deadline. They represent Hexam Investments Trust, whose trustee is a lawyer and businessman named Crawford Shaw from the wealthy town of Bedford, N.Y. Shaw signed the ticket, which was validated as the winner, on behalf of the trust.

"It's amazing things were cut that close. What if something had gone wrong? What if there had been a snowstorm? It was down to the wire," said Mary Neubauer, a spokeswoman for the Lottery, which had installed a countdown clock, repeatedly issued public reminders about the ticket and had been making plans to give away Iowa's portion of the unclaimed jackpot. "We just continue to be thrilled that the ticket that came in does ultimately preserve the winner's ability to claim this prize."

But before they pay a dime, Lottery officials say they will conduct a thorough investigation to make sure the ticket was legally purchased, possessed and presented. They were presented with another wrinkle Friday when they received calls from multiple, unrelated people claiming the ticket was stolen from them.

(Excerpt) Read more at news.yahoo.com ...


TOPICS: Business/Economy; Government; Miscellaneous; News/Current Events; US: Iowa
KEYWORDS: lottery; sourcetitlenoturl
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The winner does not get the stated amount because the state were poor investors.

Neubauer said the jackpot had an annuity value of $16.5 million when the prize was drawn, but has dropped to about $14.3 million because of a weak bond market. She said the winner has 60 days to decide whether to take the annuity or a cash payout of $10.75 million, which has not changed.

1 posted on 12/30/2011 6:39:56 PM PST by Orange1998
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To: Orange1998

In today’s market, few are actually making money. The name of the game today is to preserve wealth, not make it.

It’s the fault of the ticket holders for not claiming their prize sooner.


2 posted on 12/30/2011 6:43:48 PM PST by Jonty30 (What Islam and secularism have in common is that they are both death cults.)
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To: Orange1998

When you win a big jackpot you should have a trust pick up the check so that you aren’t hounded. It is strange to wait until the last minute.


3 posted on 12/30/2011 6:43:55 PM PST by RummyChick (It's a Satan Sandwich with Satan Fries on the side - perfect for Obama 666)
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To: Jonty30
Matthew 6:19

"Do not store up for yourselves treasures on earth, where moth and rust destroy, and where thieves break in and steal

4 posted on 12/30/2011 6:51:11 PM PST by rawcatslyentist (It is necessary that a person be born of a father who is a citizen; ~Vattel's Law of Nations)
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To: Orange1998

Make sure the ticket is not a forgery — could be Obama’s goons trying suck up more campaign money....or to pay for more vacations and golf games.


5 posted on 12/30/2011 6:51:11 PM PST by EagleUSA
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To: Orange1998

I have too many bum relatives who would be at my doorstep the day word got out that I won the lottery. If I could I would put the money in a trust to hide my identity. I can’t figure out waiting until the last two hours to claim the winnings.


6 posted on 12/30/2011 6:51:56 PM PST by KarlInOhio (Herman Cain: possibly the escapee most dangerous to the Democrats since Frederick Douglass.)
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To: RummyChick

The best advice I’ve heard, if you’ve won the lottery, to take off for 6 months anywhere.


7 posted on 12/30/2011 6:52:34 PM PST by Jonty30 (What Islam and secularism have in common is that they are both death cults.)
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To: rawcatslyentist

I know. Wealth of any kind is transitory in nature.

Enjoy it, while you have it, but let it go when it goes.


8 posted on 12/30/2011 6:53:42 PM PST by Jonty30 (What Islam and secularism have in common is that they are both death cults.)
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To: RummyChick
It is strange to wait until the last minute.

It would seem likely that this was a tax strategy by the holder(s) of the ticket.

9 posted on 12/30/2011 6:54:32 PM PST by UCANSEE2 (Lame and ill-informed post)
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To: Orange1998

The headline amount for a lottery jackpot is nonsense. The actual prize is $10.75 million. The $16.5 million and $14.3 million are just the nominal amounts of annuity payouts which were available a year ago and today. There was no investment decision made by the state that affected any of these numbers.


10 posted on 12/30/2011 6:55:20 PM PST by FewsOrange
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To: FewsOrange; Orange1998

Hey, are we related?


11 posted on 12/30/2011 7:01:31 PM PST by Osage Orange (HE HATE ME)
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To: RummyChick
Some states do not allow you to remain anonymous if claiming a large jackpot. The Maryland lottery and I think Delaware allows you to remain anonymous but Pennsylvania by law will publish your name and the town in which you live whether you want them to or not.

It makes some sense to set up a trust to claim the prize in order to protect your identity. But I guess that takes some time and no small upfront expense to do so.

12 posted on 12/30/2011 7:03:15 PM PST by MD Expat in PA
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To: Orange1998

I thought most lotteries stipulate you agree to some level of publicity if you win.


13 posted on 12/30/2011 7:08:25 PM PST by Krankor ( spare time.)
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To: Orange1998

That’s the government again. They talk about fairness but they’re not fair.

The value was $16.5 million but the bond market went down so now they’ll only pay out 14.3 million.

They should pay the full amount


14 posted on 12/30/2011 7:11:27 PM PST by ladyjane
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To: ladyjane
The value was $16.5 million but the bond market went down so now they’ll only pay out 14.3 million.

The value was never $16.5 million, it was $10.75 million. It is still $10.75 million. The 16.5 million and 14.3 Million figures are based on annuities that you could purchase 1 year ago or today, values dictated by the market and nothing to do with the state.
15 posted on 12/30/2011 7:19:41 PM PST by FewsOrange
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To: Osage Orange; FewsOrange; Orange1998; grey_whiskers

Hey greywhiskers check out post #11, these old orangemen have more identity probs than we do.


16 posted on 12/30/2011 7:22:17 PM PST by Graybeard58 (No Obama, No Romney, No Paul, No Huntsman. We can do better than that!)
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To: Orange1998
a jackpot worth up to $14.3 million.

If I won that kinda money, I could pay most of my bills!

17 posted on 12/30/2011 7:24:07 PM PST by Graybeard58 (No Obama, No Romney, No Paul, No Huntsman. We can do better than that!)
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To: Osage Orange; FewsOrange; Orange1998; Graybeard58
Accept NO substitutes!

Cheers!

18 posted on 12/30/2011 7:24:18 PM PST by grey_whiskers (The opinions are solely those of the author and are subject to change without notice.)
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To: Osage Orange

Y’all must be, since yore names rhyme


19 posted on 12/30/2011 7:26:42 PM PST by Deaf Smith
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To: Orange1998

When you are talking about large lottery sized jackpots, I wouldn’t care if it was the annuity value or the actual cash payout. The key is to wisely manage what you have so that you don’t end up blowing everything. Remaining anonymous if possible is one of the most important ways to do this. A large number of lottery winners end up losing it all because so many people hit them up for money in one way or another. If nobody knows you have the jackpot, then they won’t ask you for money, although some people might get suspicious if you have the cars, houses, etc but don’t seem to ever go to work.


20 posted on 12/30/2011 7:27:07 PM PST by yawningotter
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To: Deaf Smith

Nonsense, nothing rhymes with orange, not even orange.


21 posted on 12/30/2011 7:28:32 PM PST by FewsOrange
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To: FewsOrange

borange. corange. dorange.

Lots of things rhyme with orange. I just don’t know what those things are.


22 posted on 12/30/2011 7:33:08 PM PST by Jonty30 (What Islam and secularism have in common is that they are both death cults.)
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To: FewsOrange

Yes, I know that. I was feeling negative about state and federal government. Local government too.


23 posted on 12/30/2011 7:34:34 PM PST by ladyjane
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To: Osage Orange; FewsOrange

We Sure Are!!! BTW did you win the lottery lately.


24 posted on 12/30/2011 7:40:00 PM PST by Orange1998 (Obama also inherited AAA credit rating.)
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To: Jonty30; FewsOrange

Door Hinge


25 posted on 12/30/2011 7:45:48 PM PST by The SISU kid (I feel really homesick all the time & so do all the other aliens.....)
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To: Graybeard58

Same here. I may have something left over after wifey gets her cut.


26 posted on 12/30/2011 7:45:52 PM PST by Orange1998 (Obama also inherited AAA credit rating.)
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To: Jonty30

add orangutang too.


27 posted on 12/30/2011 7:47:55 PM PST by Orange1998 (Obama also inherited AAA credit rating.)
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To: Orange1998
The winner does not get the stated amount because the state were poor investors.

No, the state didn't do anything with the money. The cash value remains the same.

What happened is that the advertised jackpot reflected the annuity rates that were available at that time. Since the winner didn't claim the prize, the annuity hadn't been purchased yet.

Interest rates have dropped in the past year (30 year fixed mortgage rates are under 4%). So, the annuity that can be purchased with the cash value yield less, over the long term.

28 posted on 12/30/2011 7:52:20 PM PST by justlurking (The only remedy for a bad guy with a gun is a good WOMAN (Sgt. Kimberly Munley) with a gun)
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To: Jonty30
It’s the fault of the ticket holders for not claiming their prize sooner.

Maybe a cheap trick to keep visibility off, on top of going the "Trust" route. But, this is the 2nd high visibility winning in my short term memory that has gone the Trust route. Obviously the concept of using a Trust to maintain your anonymity has caught on...

29 posted on 12/30/2011 7:55:26 PM PST by taildragger (( Palin / Mulally 2012 ))
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To: MD Expat in PA
Some states do not allow you to remain anonymous if claiming a large jackpot.

Texas doesn't allow you to remain anonymous. But, there are ways around it.

It makes some sense to set up a trust to claim the prize in order to protect your identity. But I guess that takes some time and no small upfront expense to do so.

It makes a lot of sense, and is very common in states that don't allow the recipient to remain anonymous. I don't know why no one has done it in Iowa yet -- perhaps they just don't know better.

But I guess that takes some time and no small upfront expense to do so.

It's not a huge amount of time -- a month or two. You have to file paperwork with the state, and get a tax ID number from the IRS (the last part can be nearly instant).

But, it's not really that expensive, at least in comparison to the amount that was won. A good attorney specializing in estate law will do it right for under $10K.

If the attorney knows what he/she is doing, they will also set a limited partnership so that the winner is protected from bogus lawsuits.

30 posted on 12/30/2011 7:59:19 PM PST by justlurking (The only remedy for a bad guy with a gun is a good WOMAN (Sgt. Kimberly Munley) with a gun)
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To: RummyChick; KarlInOhio; Jonty30
"When you win a big jackpot you should have a trust pick up the check so that you aren’t hounded."

I heard someone say that if they won the lottery they would immediately call every friend and family member they could think of and ask to borrow $10,000. Then wait a few days to see what everyone says before announcing the win.

31 posted on 12/30/2011 8:00:26 PM PST by Baynative (The penalty for not participating in politics is you will be governed by your inferiors.)
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To: justlurking

Makes sense but the state will make it difficult to claim. The states clearly wants it.


32 posted on 12/30/2011 8:08:16 PM PST by Orange1998 (Obama also inherited AAA credit rating.)
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To: KarlInOhio
"I have too many bum relatives who would be at my doorstep the day word got out that I won the lottery."

I'd have to carry around an MP3 player with a recording that says "go to hell" or "get lost" just to keep from wearing my voice out, I'd be saying it so much. Oh, and an armed guard too. Such a system would get me through until I could move far away, or go into isolation.

33 posted on 12/30/2011 8:08:23 PM PST by KoRn (Department of Homeland Security, Certified - "Right Wing Extremist")
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To: Orange1998
Who actually bought the Hot Lotto ticket? Who are members of the trust that stepped forward to claim the prize less than two hours before it expired? Where was the ticket for 364 days, and why did the trustee risk sending it by FedEx to Des Moines one day before the deadline?

All covered by the simple reply "STFU and honor the ticket."

34 posted on 12/30/2011 8:24:45 PM PST by theDentist (fybo; qwerty ergo typo : i type, therefore i misspelll)
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To: Baynative
Love it! If you win a big lottery payout, you'd be surprised just how many "long lost" relatives you have. Even ones that aren't even tangentially related to you.

And don't forget the psychics who will come out of the woodwork claiming you "stole" THEIR numbers that they would have played, had they bought a ticket.

And get ready for every sob story letter that shows up in your mailbox, and how evil and greedy you are for not financing their UFO research.

35 posted on 12/30/2011 8:42:37 PM PST by boop (I hate hippies and dopeheads. Just hate them. ...Ernest Borgnine)
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To: theDentist

Agee....If the Ticket is valid and duly presented the state has no say.


36 posted on 12/30/2011 9:32:12 PM PST by Orange1998 (Obama also inherited AAA credit rating.)
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To: Baynative
This was always my plan if I ever hit the Florida Lottery for a few million, when I still worked out in the world:

Management had a weekly status / round table with our Director every Thursday. It was more B.S.'ing than anything else, unless we were jammed up with deadlines. If I hit the Lottery, I would keep it to myself completely, but drive over to Florida every weekend and do the following: (1) Buy a cheap house to establish residency (2) Sell or give away my vehicles and buy new ones there (and, of course paying Florida taxes on them) and never driving them out of the state, get Florida tags and Drivers License (3) Give my home away here LEGALLY with the stipulation to new owner that I could live in it for nothing for a few months, with no lease, payment, paperwork or anything like that (4) buy NOTHING here...everything bought in Florida (including groceries) (5) find an old drunk who had a car with local tags and give him a couple of hundred dollars a week to use it. Again, nothing in writing. (6) etc (7) etc. The whole point of the plan would be to make it appear that I was a Florida resident and completely divorcing myself from this state. No paper trail !!!! Plus, all the time going to work every day with a secret.

THEN, the big day about 5 months later: Go to the aforementioned weekly meeting and somehow get into an argument /shouting match with my Director. I get very loud and call him a couple of names......then jump up out of my chair, kicking it over, saying "I'm tired of this $hit and throw my I.D. Badge across the table at him and tell to stick it up his a$$. Then, as I storm out the door, I shout over my shoulder, you can all get eff'ed. Then, leave and never look back, heading straight to Florida and get my tax-free big bucks. Never come back to this state or ever make contact with a single sole locally, even my best friends.

Imagine how the stories would grow from that day forward and keep growing as time went by. "WOW...you should have seen (jmax) tell Warren where to stuff it and to get eff'ed. I went by his house today and a neighbor said he had no idea where he went. House is empty, no cars in driveway or anything. He just dissappeared..... checked with the police and they knew nothing....same with the County Court House. Nothing..... I tell you, he just fell off the earth or something". And, how the Warren story would build over the years...."He shot Warren and ran, never to be seen again. Even shot 3 Security Guards on the way out", never picked up his final paycheck, left his lunch in his office, etc. etc. etc.

Ah...but life is good here in Florida. Fishing is fabulous. White sandy beaches, drinking those colored drinks with the little umbrella's sticking out. Corvette all polished up...... thinking about running up to Georgia tomorrow to visit a couple of cousins. As I said: LIFE IS GOOD.

37 posted on 12/30/2011 9:44:26 PM PST by jmax
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To: jmax
White sandy beaches, drinking those colored drinks with the little umbrella's sticking out.

I thought right away of Milton ... "I could put strychnine in the guacamole."

38 posted on 12/30/2011 11:29:10 PM PST by dr_lew
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To: rawcatslyentist

Matthew said that, but goat granny says don’t tear up that winning lotto ticket...


39 posted on 12/31/2011 2:00:32 AM PST by goat granny
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To: RummyChick

It is strange to wait until the last minute....A few years ago a guy had a winning ticket, knew and for some strange reason, signed it and sent it in the USPS mail like any other piece of mail, about three days before the expiration. Lottery officials opened it at 1600 hrs. and pretty near had a heart attack. At the time, I was thinking that for $17 million, I’d have walked all year to Lottery Headquarters.


40 posted on 12/31/2011 2:15:27 AM PST by Safetgiver (I'd rather die under a free American sky than live under a Socialist regime.)
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To: FewsOrange; Jonty30
Nonsense, nothing rhymes with orange, not even orange.

Door hinge.

41 posted on 12/31/2011 2:52:55 AM PST by Right Wing Assault (Dick Obama is more inexperienced now than he was before he was elected.)
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To: rawcatslyentist
"Do not store up for yourselves treasures on earth, where moth and rust destroy, and where thieves break in and steal

Wealth and "stuff" comes and goes and will not sustain our eternal souls. However, having a lot of money also enables one to do good while on the earth. If I had a fortune, I'd set up my kids, treat myself and my wife to some of the pleasures it affords, and spend the rest on charitable/Christian causes.

42 posted on 12/31/2011 4:31:55 AM PST by trebb ("If a man will not work, he should not eat" From 2 Thes 3)
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To: Orange1998

Ah, that’s the ticket. They stole the ticket from me. Here’s my bank account number. Thanks.


43 posted on 12/31/2011 5:36:52 AM PST by Jabba the Nutt (.Are they stupid, malicious or evil?)
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To: Krankor

“I thought most lotteries stipulate you agree to some level of publicity if you win.”

At least one state lets you be anonymous.

Many states let a trust be the winner. So the Trust’s name is what gets publicized .You could go your whole life without relatives knowing you won the lottery if you keep your mouth shut. I think there is a natural propensity to share the information in the excitement. Then your relatives can take a hit out on you - as has been the case with several lottery winners.

I saw one expert say that you really need two trusts. One to pick it up and then you have that one hand it over to another trust.


44 posted on 12/31/2011 6:23:32 AM PST by RummyChick (It's a Satan Sandwich with Satan Fries on the side - perfect for Obama 666)
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To: Orange1998
Makes sense but the state will make it difficult to claim. The states clearly wants it.

Legally, I don't think the state can demand the identity of the beneficiary of the trust.

If Iowa law requires that only an individual can claim a ticket, they might have a supportable position. Otherwise:

If the state refuses to pay the bearer of a valid ticket, the integrity of the entire lottery is in question. If they can refuse to pay it now for an arbitrary reason, they can refuse to pay it to anyone for any reason.

For obvious reasons, the state wants to be sure the ticket is valid. I don't think they have (yet) claimed it is invalid.

There is plenty of legal precedent for a trust or partnership claiming a lottery ticket in other states. Any problem is being created by the state of Iowa, and unless they have legislation specifically requiring that an individual must personally claim a ticket, they are opening them up to legal action -- which they will lose.

45 posted on 12/31/2011 6:28:47 AM PST by justlurking (The only remedy for a bad guy with a gun is a good WOMAN (Sgt. Kimberly Munley) with a gun)
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To: justlurking

The State may eventually find out by virtue of the K1 and taxable income that is distributed.


46 posted on 12/31/2011 6:36:03 AM PST by RummyChick (It's a Satan Sandwich with Satan Fries on the side - perfect for Obama 666)
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To: RummyChick
The State may eventually find out by virtue of the K1 and taxable income that is distributed.

That's true. But, that information is confidential, by law.

The individual will still be able to remain anonymous from deadbeat relatives, and "newfound" friends.

The real reason that lotteries don't want anonymous winners is they want to use the winner's name and picture for promotional purposes. I think the Texas Lottery law specifically says that.

47 posted on 12/31/2011 7:17:30 AM PST by justlurking (The only remedy for a bad guy with a gun is a good WOMAN (Sgt. Kimberly Munley) with a gun)
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To: trebb

Wealth is not evil. Just the LUST FOR IT.


48 posted on 12/31/2011 4:07:15 PM PST by rawcatslyentist (It is necessary that a person be born of a father who is a citizen; ~Vattel's Law of Nations)
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To: MD Expat in PA
But I guess that takes some time and no small upfront expense to do so.

A simple family trust can be set up for $500.....

49 posted on 12/31/2011 6:44:23 PM PST by Osage Orange (HE HATE ME)
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To: Orange1998

Maybe.....but, I can’t remember.


50 posted on 12/31/2011 6:45:37 PM PST by Osage Orange (HE HATE ME)
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