What Happens To The Money If A Winner Of The Maryland Lottery Dies?

When a person wins a jackpot in the Maryland Lottery, he/she is normally given a choice between taking a full payout over several years or a one time cash settlement that is a fraction of the total jackpot. If a person chooses to take the full payout over time, what happens to his/her money if he/she dies?

The lottery winnings are the property of the winners. The money still owed on a prize is a tangible asset that becomes a portion of that person's estate. While the lottery commission can not tell a person how to assign their money, they recommend naming a beneficiary to receive any future payments in the event the winner does not live long enough to collect the full jackpot.

If there is no specific beneficiary named and no will, all money will be paid to this person's estate on the same schedule it would have been paid to the winner. It is then the problem of his/her heirs to divide the proceeds in a manner that is fair and equitable as defined by the probate court. All beneficiaries and/or heirs who receive a portion of these winnings are responsible for any and all taxes on the portion they receive.

The prize money owed does not revert to the state. It is still the property of the winner's family and heirs. If one has any particular wishes for how the money should be distributed, it is important to outline this in writing when collecting and/or leave a will with the particulars outlined in writing.