Delaware one of six states where Powerball and Mega Millions lottery winners stay anonymous

Delaware is one of only six states where Powerball and Mega Millions winners get to stay anonymous, an important protection against thieves and scam artists. 

According to the Multi-State Lottery Association, which runs the Powerball, you don't have to tell anyone your name if you win big in Delaware, Kansas, Maryland, North Dakota, Ohio and South Carolina. 

In Arizona, people who win more than $600 can keep their names secret for 90 days after claiming prizes, but after that names are public record. In Michigan, winners are anonymous unless they win Mega Millions or Powerball prizes.

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Why does it matter? 

Lottery winners often become targets for lawsuits, harassment and requests for money — from family, friends or even complete strangers. 

Some have even been killed.

In 2015, Craigory Burch Jr., a Georgia forklift driver who won nearly half a million dollars, was murdered by seven masked men during a home invasion and robbery. His family said he was targeted because of a public announcement about the lottery winnings. 

In 2006, Abraham Shakespeare won $30 million. Two years later he was approached by Dorice "Dee Dee" Moore, who claimed she was writing a book about how people were taking advantage of him. 

Moore later became his financial adviser, eventually controlling every asset he had left, including an expensive home, the debt owed to him and a $1.5 million annuity. She ultimately swindled Shakespeare out of his dwindling fortune, then shot him and buried his body under a concrete slab in her backyard. 

"She got every bit of his money," said Assistant Florida State Attorney Jay Pruner in 2012. "He found out about it and threatened to kill her. She killed him first."

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All that to say that a little anonymity can be a good thing when it comes to winning the lottery. The windfall may be welcomed, but the attention, not so much. 

There are a few other considerations you may want to take into account, too. If you end up winning the largest lottery jackpot in U.S. history, here are a few things you may need to know: 

I won! Now what? 

Lottery officials recommend winners take a deep breath, put their winning ticket in a safe spot and consult with a reputable financial planner before popping over to the lottery headquarters.

Their first decision is whether to take the cash option, which would now be $904 million for Mega Millions, or an annuity, with one initial payment and annual installments over 29 years. Nearly all winners opt for cash, but the annuity has advantages, as it reduces the tax bill a little and offers a stable flow of income that climbs by 5 percent annually.

How long do I have to claim the money? 

States have different rules, so depending on where you purchased the ticket, you have from 180 days to a year.

In Delaware, drawing game prizes must be claimed within one year from the date of the drawing. Instant Games prizes must be claimed within one year of the announced End of Sales, according to delottery.com. 

Do I get the money right away? 

No, you can't just cash one of those oversized checks shown in all the winner photos. Payment speed also varies by state, but a week or two is common. Carole Gentry, a spokeswoman for the Maryland lottery, said the requirement is seven to 10 days in that state.

In Delaware, it takes about two weeks, according to delottery.com. 

What about taxes? 

For winners of $5,000 or more, all states automatically deduct 24 percent in federal taxes but state taxes vary widely. Some big states, including California, don't withhold taxes from lottery winnings, and some like Texas don't have individual income taxes at all. For the others, the state takes a bite, especially in New York, where a winner would need to pay a state tax of 8.8 percent. Residents of New York City would pay an additional tax of 3.9 percent. In general, taxes eat up nearly half of winnings.

All winning Delaware Lottery tickets are subject to Delaware Income Tax, which ranges from 0 percent to 6.6 percent.

Melissa Labant, a tax policy expert at the American Institute of Certified Public Accountants, said winners should realize that while taxes are initially withheld when prizes are awarded, more money will likely be due at tax time as people suddenly are in up to a 37 percent tax bracket.

"That catches people off guard," she said. "You have to be prepared to write another check to the IRS in April."

What if I bought it in a different state? 

This can get complicated, but for the most part winners pay taxes where they bought the ticket and then can get a credit on their taxes in their home state. The final tax bill can depend on if the state where you live taxes at a higher or lower rate than where you purchased the ticket. Rules vary by state, so this is a good topic for that financial planner.

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Associated Press reporter Scott McFetridge contributed reporrting. Contact Jessica Bies at (302) 324-2881 or jbies@delawareonline.com. Follow her on Twitter @jessicajbies.