An 81 year-old woman who won a whopping $336.4 million Powerball jackpot this week accepted the sum under the name Rainbow Sherbet Trust. She claimed a total of $210 million distributed in one lump payout.
The trust was so named because a family member’s craving for ice cream led to the purchase of the lucky lottery ticket. The elderly woman bought the ticket while accompanying her relative to the store last month. However, unlike many past winners, she resisted the urge to claim her prize immediately.
Instead, the new millionaire placed the ticket in a Bible and slept with it on her bed. The next morning she made sure her first phone call was to her attorney. Together, the pair set up the Rainbow Sherbet Trust.
The woman’s attorney praised her for waiting nearly a month to come forward and accept her winnings. And one might argue that the praise was well deserved. By establishing a trust, the 81 year-old made a well planned decision about the future of her estate. The trust will control exactly how and when her newly acquired assets are disbursed.
The exact nature of the Rainbow Sherbet Trust is not known. Trusts can be established in several ways, including through the creation of a will, as in Whitney Houston’s case. They may also be set up to provide for the long term care of a disabled individual, or to benefit a charity.
Many trusts are spendthrift trusts. That is, they give the trustee full authority to spend or invest assets for the benefit of the trust’s beneficiaries.