The legislature has told the state lottery to let big winners who are spreading their winnings through 20 or 25 years sell short if they want. The action will let people part way through the long payout sell the remaining payouts in a reduced-amount lump Senate sponsor Ted House says it lets those winners avoid what he calls the “draconian” estate tax liability. A new federal law takes care of things with the start of the next year. But he says previous winners would be left unprotected. Present law says lottery winners’ estates will be taxed at the full value of the future winnings immediately, leaving survivors unable to pay the tax. Under the new plan, survivors can sell the future winnings at a reduced price, and be taxed on that lower amount.
