$78 Million Lotto Texas Jackpot Claimed by South Dakota Trust Just in the Nick of Time

In an entrancing story of luck and timing, a South Dakota-based trust called Jua-Ri Trust Agreement Trident Trust Company, Inc., came forward to claim a staggering $78 million Lotto Texas jackpot. The claim was made with just days to spare before the prize was set to expire, adding a thrilling twist to the tale.

Down to the Wire

With less than a week remaining before the massive jackpot was set to expire, the winner finally emerged. The Texas Lottery had issued a final call for the expiring jackpot last month and it seemed as though the windfall might go unclaimed. However, in a surprising turn of events, the winning ticket was presented just days before its expiration.

The winner opted for the cash option of the estimated $78 million annuitized prize. After taxes, they walked away with an impressive sum of $43,757,223.10. Had they waited past the May 14 deadline, they would have forfeited this astounding fortune. The claim was made on May 8, with only six days left on the clock.

In Texas, lottery winners are given 180 days from the draw date to validate tickets for prizes. This particular ticket bore witness to its owner choosing their own numbers and matching all six numbers drawn in the Nov. 15 Lotto Texas drawing: 7, 17, 23, 28, 39, and 48. The lucky ticket was purchased at Gordon's Bait & Tackle on Padre Island Highway in Brownsville.

A Historic Jackpot

The jackpot began its run on Feb. 19, and after an astonishing 116 drawings without a winner across nine months, it became the sixth-largest Lotto Texas jackpot in history. The record for the biggest Lotto Texas jackpot still stands at $145 million, won by a ticket purchased in El Paso in 2004.

Interestingly, this isn't the first time a large jackpot was claimed by a South Dakota-based trust in Texas. In November 2023, the Blue Yucca Trust of Rapid City made Texas state history when they claimed a $360 million Mega Millions jackpot, which remains the largest lottery prize ever paid out to a Texas lottery player.

The Significance of Claiming Under a Trust

One might wonder why the winner chose to claim their winnings under a trust. South Dakota is a popular state for incorporating trusts for several reasons, not least of which is the fact that it does not impose income tax. A properly structured trust domiciled in South Dakota can shelter investment income from the income taxes of the state where the beneficiary actually lives.

For a winner living in Texas, this wouldn't necessarily be an advantage since Texas also does not impose an income tax, including on capital gains. However, for winners residing in high-tax states such as California or New York, a South Dakota trust could provide significant financial benefits.

The absence of rules against perpetuities when forming a trust in South Dakota also means that trusts are not forced to dissolve and distribute assets after a certain period of time. This protects against estate, gift, and generation-skipping transfer taxes and is an effective way to secure a legacy for future generations while avoiding additional taxes.

South Dakota has robust privacy laws surrounding trusts as well. State law prohibits the release of trust information to the public and offers no avenue to petition the court for such information. This means that anyone seeking more information about a winner would not even have a way to do so, providing an added layer of privacy and security for lottery winners.