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Say you win, and you clear $50 million. I would want to give my immediate family (parents, brother, sisters) each a few million, but I don't know how it would be possible to do so without being taxed a second time on the money (taxed first when collecting the winnings, then a second time because it is income to them).

Yeah. I've pondered the same thing.

Actually, I have quite a different question. Suppose a person wishes to give most of the $50 million to charity and only wants to keep, say, $5 million for himself. My understanding is that the taxes are withheld upfront. If so, and the person doesn't have the $45 million he wants to give away, is there anyway to give it away before it gets taxed?

I realize he could give away $45 from any source and then get a nice big refund, but people like me don't have that kind of money lying around. ;)

What does a poor person do?

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